Latest funding proposal extends program through 2024.
With the Dairy Margin Coverage (DMC) program likely extended and the next farm bill pushed into 2024, the financial importance of the safety net on U.S. dairy producers continues to mount, although the impact lessened in September.
An improving U.S. dairy producer milk-feed income margin reduced DMC insurance program indemnity payment on September milk marketings. The September DMC milk income over feed cost margin rose to $8.44 per hundredweight (cwt), limiting indemnity payments to dairy operations enrolled in DMC at Tier I insured levels of $8.50 and above. (Read: September DMC margin hits $8.44 per cwt) As a result, September DMC payments totaled about $35 million, the smallest monthly total for 2023.
Dave Natzke
November 13, 2023
agproud.com
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