Officials say dairy producers and others should expect Wildfire and Hurricane Indemnity Program Plus (WHIP+) payments in April or May. Congress authorized $10 billion for the plan over four months ago, and the coming aid impacts eligible 2020 and 2021 crop, livestock and dairy producers, with $750 million just for the livestock industry.
The payments will likely be split into two tranches, with the first beings set to pre-fill applications for grain and livestock producers. The second would make up for whatever isn’t covered under the first tranche. The program will be administered by the FSA, but the risk management agency would calculate the payment for insured producers.
Butter is BIG
Butter continues to be a big story in dairy right now, with prices hitting their highest since 2015. Spot butter climbed to $2.93 last week, blocks fell just over three cents to $1.80 per lb. and barrels gave up a penny to come in at $1.81 per lb.
Now, experts say the increases were driven by a decline in cow herds, labor shortages and the higher cost to pack supplies not just here, but overseas as well.
“Butter prices are rising because of the lack of production coming out of the EU and what we call Oceana, which would be New Zealand and Australia,” says Dan Basse, analyst with AgResource Company. “This has given the U.S. a butter price advantage. That spread relative to the EU and Oceana has been narrowing. But demand for butter fat globally has been so strong. As we look at the global auction, [specifically] record cheddar and record butter prices, we think that keeps the market heading higher, principally with a lack of protein supplies now talking meat around the world.”
USDA says it expects shortages will continue to limit the butter supply this year.
