Milk prices declined and feed costs continued to rise in July, cutting into monthly dairy producer milk income over feed cost margins calculated under the Dairy Margin Coverage (DMC) program.

A widening gap in August Federal Milk Marketing Order (FMMO) Class IV and Class milk prices ensures there’s even more incentive to depool Class IV milk.

• 2022 U.S. dairy export outlook surges over $9 billion
• EPA moving forward on PFAS ‘Superfund’ proposal
• DMI publishes 2021 annual report
• USDA launching 2022 Census of Agriculture 

Digest highlights

• Ag loan interest rates move higher
• GDT product prices mixed
• FSA increases LIP payments for young dairy, beef cattle
• DFA, Pizza Hut partnering on sustainability project
• Northeast DBIC offers dairy funding

May 2022 “mailbox” prices averaged about 98 cents per hundredweight (cwt) less than announced average “all-milk” prices for the same month.

• Vitaliano: Dairy market trajectories seeking direction
• Dairy cull cow marketing slower in July
• Canadian cow, heifer numbers down slightly
• June fluid sales lower
• FarmFirst hosts ‘FMMO modernization’ webinar
• AFBF sets FMMO Forum in Kansas City, Oct. 14-16

With the end of another quarter near, dairy producers managing risk through the Dairy Revenue Protection (Dairy-RP) program face a coverage deadline. 

As of early August, approximately 80% of calendar year 2022 Dairy Margin Coverage (DMC) and Supplemental DMC premiums had not paid as the payment deadline of Sept. 1 approaches.

Strong milk prices and tighter supplies of cows and heifers pushed U.S. average prices for dairy replacements to their highest level in six years, according to latest quarterly estimates from the USDA.