If anything, this week taught us to expect the unexpected. On Monday, it was 50 degrees outside and seemed like spring was right around the corner. We woke up Tuesday morning, and there were 4 inches of snow outside. Weather reports were warning about the impending weather, and we all thought the ground was far too warm to merit that much snow. Or at least I did. But the snow came, despite what we thought, and with it lots of traffic problems and downed branches.
Expecting the unexpected is a good motto when you look at how both milk prices and commodity prices can move up and down without little notice. Any slight change in the supply or demand side of the equation can have a major impact on where prices move. That is why leveraging programs like Dairy Margin Coverage and Dairy Revenue Protection can be very beneficial because they offer protection, in other words, insurance, against the unexpected.
USDA has indicated that enrollment in the 2024 DMC Program is not likely to open until March. This will allow USDA additional time to implement changes made in last fall’s Farm Bill extension, which permanently folded the Supplemental Dairy Margin Coverage program into the underlying DMC program.
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