DMC Margin Drops Again – to Third Highest Ever
January 7, 2025
The monthly margin under the Dairy Margin Coverage (DMC) program lost $0.88/cwt from a month before, yet, at $14.29/cwt, still came in as the third highest since margin protection became the basic safety net program for dairy in 2015.
The November U.S. average all-milk price dropped by $1/cwt from October to $24.20/cwt, while the DMC feed cost formula declined by $0.12/cwt. A lower soybean meal price more than offset a higher corn price; the premium alfalfa hay price was little changed.
The end of December dairy and grain futures indicated that the DMC margin would average around $12.50/cwt for all of calendar year 2025, which would be $0.60/cwt higher than the 2024 annual average and well above the trigger under which payments begin.
