DMC Pays Again in September
November 8, 2022
The September margin under the Dairy Margin Coverage program was $8.62/cwt, up by $0.54/cwt from the August margin and generating a payment of $0.88/cwt for Tier 1 coverage at the $9.50/cwt level under the program.
The September U.S. average all-milk price rose $0.10/cwt from August. The DMC feed cost formula produced a $0.45/cwt lower feed cost for the month, due almost entirely to lower soybean meal and corn prices (numbers don’t add exactly due to rounding).
Together, the September payment and the August one for $1.42/cwt will return more to producers enrolled for $9.50.cwt Tier 1 coverage than their annual premium payments. Current forecasts indicate that, of the remaining three months in 2022, additional margin coverage payments are most likely to occur in December.
USDA’s Farm Service Agency opened enrollment for both calendar year 2023 DMC and for Supplemental DMC on Oct. 17. The deadline to enroll is Dec. 9, 2022.
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