News

Largest dairy margin program payout

Farmers enrolled in the dairy margin protection program are receiving the largest payout to-date for May and June margins.

USDA announced more than $11 Million dollars in financial assistance will be awarded to dairy farmers. The average margin during May and June was $5.76 per hundredweight.  Coverage levels are available to farmers from $4 to $8 dollars.

Chris Galen with the National Milk Producers Federation says this year has been worse for dairy farmers than what was forecasted at this time last year.  “You may think that you don’t need car insurance, or home insurance or life insurance, but inevitably there are times when the unexpected happens—and that’s why this program is beneficial because it allows you to ensure against the worst case scenarios.”

He says while better dairy margins are expected for the last half of this year, the 2017 enrollment period for the program is open through September and farmers may want to reevaluate their level of insurance.

The margin is calculated on the difference between the price of milk and farmers’ feed costs.

AUDIO: Interview with Chris Galen