The United States Department of Agriculture reports the milk/feed margin under the Dairy Margin Cover (DMC) program for April was $8.96, which would result in a payment of 54¢ for dairy farmers signing up for $9.50/coverage.
Sign-up for the program begins next Monday, June 17. For more details on sign-up, click here.
The April margin calculation is based on corn at $3.52/bu, alfalfa at $199/ton and soybean meal at $304.26. The U.S. all-milk price is $17.70 for April.
The 54¢ payment is the second lowest reported this year. In January, the payment is 51¢; in February, $1.28, and in March 65¢. Note: All these payments are at the $9.50 coverage level, and are subject to a 6.2 percent reduction due to sequestration under the Balanced Budget and Emergency Deficit Control Act of 1985.
For more details on the DMC program, click here.