February 12, 2021: 2020 Crop Production

It is no secret that the most expensive part of running a dairy operation is the feed bill. The USDA is projecting the Dairy Margin Coverage (DMC) feed cost (corn + soybean meal + blended alfalfa hay price) to average about $2.10 per cwt of milk produced more in 2021 than it  did in 2020. Based on February 3, 2021 DMC projections, the DMC feed cost will average $10.77 per cwt this year. Crop production estimates indirectly play a role in these projected feed costs as it relates to the possible supply available to meet the projected demand. On January 12, 2021, the USDA released its Crop Production 2020 Summary. In the summer of last year, the USDA forecasted record-setting corn and soybean crops. The 2020 summary tells whether the forecast was correct. Read More