The U.S. Department of Agriculture’s Farm Service Agency (FSA) announced that the May 2020 income over feed cost margin was $5.37 per hundredweight (cwt.), triggering the third payment of 2020 for dairy producers who purchased the appropriate level of coverage under the Dairy Margin Coverage (DMC) program.
“This payment comes at a critical time for many dairy producers,” said FSA Administrator Richard Fordyce. “DMC has proved to be a worthwhile risk management tool, providing dairy producers with much- needed financial support when markets are most volatile.”
To date, FSA has issued more than $176 million in program benefits to dairy producers who purchased DMC coverage for 2020.
Authorized by the 2018 Farm Bill, DMC is a voluntary risk management program 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. Over 13,000 operations enrolled in the program for the 2020 calendar year.… Continue readingRead More »