Milk pricing - Articles - Page 4

March DMC margin is $9.65 per cwt

Feedstuff and milk prices held steady in March for a DMC margin of $9.65 per cwt, the first since December 2022 to not trigger a payment through the dairy risk management program.

April 30, 2024

Jenn Coyne

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report April 30, which includes feed costs used to calculate March Dairy Margin Coverage (DMC) program margins and indemnity payments. Consistent feedstuff prices and a slight improvement in the all-milk price brought the average milk income margin to $9.65 per hundredweight (cwt).

Strategies for dairy farmers to ensure stability

Programs like Dairy Margin Coverage, Dairy Revenue Protection and Livestock Gross Margin – Dairy are among the risk management tools to help dairy producers manage risk with milk price volatility.

April 29, 2024

Bill Oppreicht

A thorough understanding of production costs allows the opportunity to secure margins and ensure profitability. Employing multiple risk management tools in conjunction can provide solid milk price protection, making milk price risk management more critical than ever.

March 2024 FMMO uniform prices inched higher

Milk class prices rose but Class IV milk pooling was still limited.

April 15, 2024

Dave Natzke

Here’s Progressive Dairy’s monthly review of March 2024 FMMO data to provide some additional transparency to your milk check.

Slower-than-expected growth in output per cow reduces milk forecast

Compared to last month, the USDA left the 2023 milk production estimate unchanged but reduced 2024 production expectations 1 billion pounds from the previous report.

April 12, 2024

Audrey Schmitz

The USDA’s World Ag Supply and Demand Estimates (WASDE) report offers forecasts for dairy, beef and feedstuffs.

Economic Update: March FMMO milk class prices post small increases

March 2023 Federal Milk Marketing Order (FMMO) pooling estimates, uniform prices and producer price differentials are scheduled to be released on April 11-14.

April 4, 2024

Dave Natzke and Karen Lee

Milk checks for March milk production should reflect higher Federal Milk Marketing Order (FMMO) prices for all milk classes. The increase could be short-lived.

Maximizing Dairy Revenue Protection: Insights from five years of data

Since 2019, roughly 27% of the U.S. milk supply has been covered under Dairy Revenue Protection. The insights gleaned from the last five years of Dairy-RP data highlight the importance of strategic decision-making and a long-term perspective in managing risk.

April 4, 2024

Alex Gambonini

Dairy Revenue Protection (Dairy-RP) has emerged as an effective risk management tool for dairy producers, offering protection against unexpected declines in quarterly milk revenue.

February DMC margin is $9.44 per cwt

An improved all-milk price by 50 cents coupled with mostly lower feed costs gave way to a DMC margin of $9.44, still triggering payments through the program.

March 28, 2024

Jenn Coyne

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report March 28, which includes feed costs used to calculate February Dairy Margin Coverage (DMC) program margins and indemnity payments.

Leap day factors into milk production jump

Milk production and output per cow increase in USDA estimates due to extra “leap year” day in February.

March 21, 2024

Audrey Schmitz

Year-over-year U.S. milk production was up 2.2% in the February USDA report. However, with February 2024 containing an extra day due to “leap year,” the adjusted number is closer to -1.1% on a daily basis.