Record-high milk prices again offset higher feed costs in May, improving monthly dairy producer milk income over feed cost (IOFC) margins calculated under the Dairy Margin Coverage (DMC) program.

Progressive Dairy provides monthly online updates of important dates, reports and advice affecting risk management decisions.

Digest highlights

• ADC seeks answers on pricing concerns, hearing criteria
• Senate ag committee 2023 Farm Bill field hearing set in Arkansas
• February all-milk, mailbox price spread averaged 82 cents

Record-high milk prices offset higher feed costs in April, improving monthly dairy producer milk income over feed cost (IOFC) margins calculated under the Dairy Margin Coverage (DMC) program.

Progressive Dairy provides monthly online updates of important dates, reports and advice affecting risk management decisions.

Update highlights

• 2022 DMC enrollment posts small decline
• ‘Replacement’ economics improves
• January all-milk, mailbox price spread averaged $1
• GDT price index tumbles
• Ag producer sentiment improves but input costs, availability remain top concern

Seemingly in a race to the top, record-high milk prices surpassed record-high feed costs in March to help buffer dairy producer milk income margins calculated under the Dairy Margin Coverage (DMC) program.

Escalating feed costs ate into milk income margins in February but not enough to trigger indemnity payments under the Dairy Margin Coverage (DMC) program.

Progressive Dairy provides monthly online updates of important dates and reports affecting risk management decisions.

The jump to an eight-year high in milk prices outpaced increasing feed costs, meaning there will be no Dairy Margin Coverage (DMC) program indemnity payments at any level for January milk marketings.