Here’s an update on risk management tools available through the USDA and/or USDA’s Risk Management Agency (RMA), as well as information impacting your milk check.

Class I milk prices are headed lower but interest rates aren’t. A district court issues a limited Waters of the U.S. injunction.

• February FMMO milk class prices back to 2021 levels
• Global dairy product prices declined in February
• Dairy margins ended February modestly higher
• RaboResearch: The dairy squeeze is on

From a lender’s perspective, risk management is a proven practice that will provide a pathway to profitability. When it comes to developing your strategy for a successful risk management plan, there are key elements that need to be taken into consideration. 

Running through the heart of the north-central U.S. and bordering three of the nation’s 24 major dairy states, Interstate 29 (I-29) is a strong vein from which to measure the pulse of the industry.

The USDA released its latest Ag Prices report on Feb. 28, including factors used to calculate January 2023 DMC margins and indemnity payments.

October 2022 “mailbox” prices averaged about $1.04 per cwt less than announced average “all-milk” price for the same month.

The end of January brings the enrollment deadline for the 2023 Dairy Margin Coverage (DMC) program and milk production data to settle fourth-quarter 2022 Dairy Revenue Protection (Dairy-RP) policies.

Digest highlights

• IDFA: Milk, dairy cuts would result in lower WIC participation
• Dairy margins ended December weaker
• Scott elected House Ag Committee ranking member
• Fill a Glass with Hope to launch on Jan. 6