Dairy Week In Review

Based on recent forecasts, Dairy Margin Coverage (DMC) margins in 2026 start
at a low of $7.37 per hundredweight (cwt.) in January and increase throughout
the year to $9.94 in November before dropping to $9.84 in December for an
average margin of $8.51 per cwt. If realized, this would result in a total net
indemnity payment of $8,300 per one million pounds of production covered at the
maximum $9.50 level for Tier 1, after the premium is deducted from the total
indemnity amount but before any sequestration.

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