Markets & Management

For the second month in a row and the second time this year, the September Dairy Margin Coverage (DMC) margin triggered an indemnity. Announced earlier this week, the Sept. DMC margin was $8.62 per cwt. This is a 54 cents per cwt improvement over August but still well below the maximum $9.50 margin coverage. The U.S. all-milk price increased 10 cents to $24.30 per cwt while  the DMC feed cost fell 44 cents to $15.78 per cwt. Reduced prices for corn, alfalfa hay, and soybean meal, the three feed commodities used to calculate the DMC feed cost, were responsible for the  decline in the total feed cost relative to August. At the maximum $9.50 margin coverage, the DMC margin triggers an 88 cents per cwt indemnity on 1/12 of enrolled production history up to the 5- million-pound, Tier 1 cap. Read More