Tag: milk prices

June DMC Margin Rises $0.70/cwt

Posted on by Theresa Sweeney

The June margin for the Dairy Margin Coverage Program was $11.10/cwt in June, an increase of $0.70/cwt from May. The June all-milk price was unchanged from May at $21.30/cwt, while the June DMC feed cost formula dropped by $0.70/cwt for the month, as the prices of all three formula feed components decreased, particularly that for premium alfalfa hay.

The forecasts maintained by DMC Decision Tool on the USDA website at the end of July showed the DMC margin topping out $13.20/cwt in November and averaging $12.11/cwt for the year.

Little Change from April in May DMC Margin

Posted on by Theresa Sweeney

The May DMC margin lost $0.02/cwt from a month earlier to $10.40/cwt, according to the DMC Decision Tool on the USDA Farm Service Agency website. The Tool had previously predicted the April margin to be the lowest for the year, but a large increase in the price of premium alfalfa hay, equivalent to $0.34/cwt of milk in the DMC feed cost formula, more than offset a $0.30/cwt increase in the May all-milk price, to $21.30/cwt, while much smaller, offsetting prices of corn and soybean meal could only bring the feed cost down by another $0.02/cwt.

The Decision Tool continues to show the DMC margin increasing steadily, now from May, to top out at $13.76/cwt in November and average $12.43/cwt for the year.

DMC Margin Drops $1.13/cwt in April, Mostly on Lower Milk Price

Posted on by Theresa Sweeney

The monthly DMC margin fell $1.13 cwt in April to $10.42/cwt of milk on a lower all-milk price.

The DMC feed cost calculation rose $0.13/cwt of milk from March to April, mostly on a higher premium alfalfa hay price, as smaller corn and soybean meal price changes were nearly offsetting on a milk equivalent basis. The all-milk price was down $1/cwt to $21/cwt.

The DMC Decision Tool on the USDA Farm Service Agency website projects the April margin as the lowest for 2025. It shows monthly margins rising steadily from there to top out at $13.92/cwt in November.

DMC Margin Loses $1.57/cwt in March, Mostly on Lower Milk Price

Posted on by Theresa Sweeney

The monthly Dairy Margin Program margin fell $1.57/cwt to $11.55/cwt in March as the U.S. average all-milk price fell $1.60/cwt to $22/cwt, more than outstripping a small decline in feed costs.

The DMC Decision Tool on the USDA Farm Service Agency website has long projected the monthly margin would reach a bottom for 2025 this spring, but the March downward move outpaced its projections. On the last day of April, the Tool showed the correct milk, corn and soybean meal prices for March, but anticipated a much lower premium alfalfa hay price and showed a projected March margin of $12.29/cwt.  At that time, it also projected the margin would reach a 2025 low of $11.05/cwt in June before rising again.

NMPF’s Morris Assesses Dairy Impact of New Import Tariffs

Posted on by Chris Galen

NMPF’s executive vice president Shawna Morris assesses how the U.S. dairy sector could be impacted by the new tariffs imposed against imports by the Trump Administration, and how foreign countries may in turn raise their own tariffs against American exports.

DMC Margin Loses $0.73/cwt in March, on Lower Milk Price and Higher Feed Cost

Posted on by Theresa Sweeney

The Dairy Margin Coverage margin fell $0.73/cwt to $13.12/cwt for March as milk prices fell and feed costs rose.

The U.S. average all-milk price lost $0.50/cwt in February, falling to $23.60/cwt, while higher feed costs covered the rest of the margin loss. The DMC Decision Tool on the USDA Farm Service Agency website at the end of March projected the monthly margin would average $12.51/cwt during 2025, with a low of $11.10/cwt in May. Such a performance would result in no DMC payouts for farmers this year.

Milk Price Gain Raises January DMC Margin

Posted on by Theresa Sweeney

Following three months of falling from record highs, the Dairy Margin Coverage (DMC) program margin rose in January as milk prices increased more than feed costs.

The January U.S. average all-milk price rose by $0.80/cwt from the month before to $24.10/cwt, while the DMC January feed cost formula increased by $0.33/cwt of milk on higher prices for all three of its feed components. That moved the DMC margin up by $0.47/cwt of milk for the month.

The DMC Decision Tool on the USDA Farm Service Agency website at the end of February projected the monthly margin would average $12.37/cwt during 2025, with a low of $11.41/cwt in late spring. 2025 DMC program enrollment is now open and is scheduled to close March 31.