Learn About Risk Management Options and Review Milk Production Numbers
The Center for Dairy Excellence will host its monthly “Protecting Your Profits” webinar on Wednesday, February 26 at noon. Led by Zach Myers, Risk Education Manager with the Center, the webinar will help dairy producers and industry professionals review market fundamentals and upcoming risk management program deadlines.
“Despite the recent downturn in milk price, margins continue to look good for 2020. The USDA has predicted that the US All Milk price will average $19.25 per hundredweight this year,” Myers said. “With higher culling and decreased national heifer inventory, there will be downward pressure on national cow numbers, making major nationwide expansion difficult. This should help keep milk prices profitable for most Pennsylvania dairy farm families.”
During the call, Myers will provide an overview of the following data:
- As of Feb. 14, 2020, Class III and Class IV futures prices for the next six months have softened relative to this time last month. Class III futures for the next six months are averaging $17.37 per hundredweight, down 44 cents from this time last month.
- December 2019 dairy cow slaughter was up 1.61 percent compared to December 2018.
- December 2019 milk production was up only 0.67 percent over December 2018.
- December cow numbers dropped less than 0.2 percent from December of 2018 to 9.339 million head.
Producers who join the call will also receive updates about current risk management programs, including Dairy Revenue Protection (R-P). Dairy-RP policies for second quarter 2020 through second quarter 2021 will be available for purchase from an Authorized Insurance Provider through March 15, 2020. After that deadline, third quarter 2020 through third quarter 2021 will be available until June 15, 2020.
In addition, Myers will discuss USDA’s recent announcement about the Market Facilitation Program. The program plans to make the third round of payment in response to lost revenue due to retaliatory tariffs. The payment will be equal to $0.20 per hundredweight for the final 25 percent of Dairy Margin Coverage production history.
For individuals who want to join the discussion and access this information digitally, the Center is now offering a webinar format. There is no cost to participate in the ‘Protecting Your Profits’ webinar.
Visit centerfordairyexcellence.adobeconnect.com/rf3wkgrmwi2c/ on Wednesday, February 26 at noon to join the webinar. Individuals who would prefer to connect via conference call can dial the following number:
Dial: 1-866-266-3378
Conference ID: 717-346-0849#
Passcode: 0849#
Join the Center on February 26 to find out how these programs and the conventional price risk management tools can fit in to your marketing plan. For more information, call 717-346-0849 or email Myers at zmyers@centerfordairyexcellence.org. The call will start promptly at noon and last approximately 15 minutes. Calls are recorded and posted on the Center for Dairy Excellence website for those who are unable to join the live session.