The February 2023 indemnity payments continue what looks to be a lengthy trend, with monthly margins projected to be below $9 for all months until October.

Here’s an update on risk management tools available through the USDA and/or USDA’s Risk Management Agency (RMA), as well as information impacting your milk check.

Digest highlights

• NMPF board advances FMMO proposal
• Appeals court rules ‘gruyere’ is generic term
• Lynn named Agri-Mark president and CEO
• GDT index, cheese price softens
• USDA offers risk management training funds
• Ag producer sentiment weakens

From a lender’s perspective, risk management is a proven practice that will provide a pathway to profitability. When it comes to developing your strategy for a successful risk management plan, there are key elements that need to be taken into consideration. 

In addition to state and regional dairy producers, organization leaders, processors and others, Progressive Dairy reached out to industry representatives with a broader view of the state of dairy entering 2023. Here are summaries of their comments.

A numerical snapshot of Wisconsin shows the state averaged about 1.27 million dairy cows in 2022, producing almost 31.9 billion pounds of milk. Both changed little from the year before.

Running through the heart of the north-central U.S. and bordering three of the nation’s 24 major dairy states, Interstate 29 (I-29) is a strong vein from which to measure the pulse of the industry.

The USDA released its latest Ag Prices report on Feb. 28, including factors used to calculate January 2023 DMC margins and indemnity payments.