August’s income over feed margin is $6.46 per hundredweight (cwt.) with projected DMC payments totaling $120m. To date, including the projected August payments, dairy producers have received more than $1.2bn for 2023, USDA said.
Margin forecasts indicate the likelihood of more to come before the end of the calendar year.
FSA administrator Zach Ducheneaux commented: “While livestock and crop producers alike have been financially impacted by catastrophic natural disaster events, dairy producers’ financial stressors have been compounded by significant market volatilities. Dairy Margin Coverage is a key risk management tool for dairy operations to financially endure the numerous, and often unpredictable uncertainties that adversely impact market prices for milk.”
