The August milk margin triggered the eighth consecutive payment for dairy producers who obtained Dairy Margin Coverage for the 2023 program year.
August’s income over feed margin is $6.46 per hundredweight, with projected DMC payments totaling $120 million. To date, including the projected August payments, dairy producers have received more than $1.2 billion in much-needed economic support for 2023, and margin forecasts indicate the likelihood of more to come before the end of the calendar year.
USDA Farm Service Agency Administrator Zack Ducheneaux says, “While livestock and crop producers alike have been financially impacted by catastrophic natural disaster events, dairy producers’ financial stressors have been compounded by significant market volatilities.”
DMC is a voluntary risk management program administered by USDA’s Farm Service Agency that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer.