The Dairy Margin Coverage (DMC) program has been extended into 2024. Watch for enrollment details.

The USDA National Agricultural Statistics Service (NASS) released its latest Ag Prices report on Oct. 31, including factors used to calculate September 2023 Dairy Margin Coverage (DMC) margins and indemnity payments.

Without a 2023 Farm Bill or temporary extension of the 2018 Farm Bill, the Dairy Margin Coverage (DMC) program expires at the end of the calendar year.

USDA organic dairy programs, production data collection and risk management support would increase under a bill introduced in the Senate.

With congressional failure to approve a 2023 Farm Bill, new milk supply contracts under the Dairy Forward Pricing Program are no longer authorized.

Compared to a month earlier, U.S. average feed costs were lower and milk prices were up, pushing the milk income margin up almost $3 per hundredweight from July’s historic low.

With a federal government shutdown possible, October’s dairy risk management calendar has the potential to be scarier than Halloween.

The milk income over feed cost margin should have finally reached bottom in July.

Like the previous month, milk checks for July production will reflect weak protein and Class III milk prices. The wide price spread between Class III-IV milk prices means Class IV depooling will remain heavy.