Cropp, Stephenson Talk July Milk Production Report and MPP Sign-up
In their monthly podcast, University of Wisconsin dairy economists Bob Cropp and Mark Stephenson analyze the most recent milk production report and its implications for Margin Protection Program sign-up.
Given the increase in milk reported in July, Class III and IV futures markets appear “optimistic,” says Cropp. “I don’t see any upturn in milk prices until the second half of 2016,” he says.
Stephenson points to the wide disparity between U.S., European and New Zealand milk prices. There now is as much as an $8 gap between the U.S. and New Zealand—an incredibly wide spread by historic standards.
So should farmers sign-up for the MPP? “It’s not an easy decision. It’s not cheap, especially for larger farmers,” says Cropp. “[But] I think there will be some payments in the first half of the year.”
You can view the full podcast here.
