Digest Highlights

• DMC reminder: It’s in the mail
• January 2022 Class I base price moves to 13-month high
• Dairy cull cow slaughter slows
• USDA seeks string cheese

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

Editor's note: This article has been updated from the original, noting that the DMC hay adjustment payments are subject to a sequestration deduction rate of 5.9% on 2020 payments and 5.7% on 2021 payments. The USDA’s implementation of higher hay prices used in feed cost calculations will have an impact on the largest number of dairy producers participating in the Dairy Margin Coverage (DMC) program.

Digest Highlights

• USDA milk production forecast reduced, price projections rise
• DFA to close one of two Nashville facilities
• PMVAP payments possible in January
• USDA mailing pre-census survey
• And in other news …

Additional details are emerging regarding Dairy Margin Coverage (DMC) program changes announced by the USDA on Dec. 8. (Read: USDA releases supplemental DMC, hay cost adjustment and 2022 enrollment details.)

The USDA has released eagerly awaited details related to the Dairy Margin Coverage (DMC) program. The announcement, Dec. 8, covers:

• Creation of a supplemental DMC provision for small and midsized dairy producers to update milk production history
• Adjustments in determining average hay prices to calculate monthly feed costs and margins
• Establishment of a sign-up period for 2022 program enrollment

A few questions remain, but here’s what we know so far. Check back with Progressive Dairy for updates.

October milk prices moved to a 12-month high, helping boost the Dairy Margin Coverage (DMC) program income margin to $8.77 per hundredweight (cwt), according to preliminary calculations by Progressive Dairy.

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

Digest Highlights

• Changes to DMC program should be announced soon
• GDT price index continues to climb
• USDA buys dairy products, seeks millions more
• Dairy Business Innovation Initiatives grants awarded
• Following up: Strikes coming to end

Digest Highlights

• ‘Build Back Better Act’ funds projects to address dairy’s needs
• Bill adds ag representation on foreign transaction panel
• Proposal expands DOT farm truck exemptions
• California flights to measure methane
• Worker strike planned at New York dairy processor
• Agricultural broadband needs identified
• Veterans in agriculture to meet
• ARC/PLC payment, enrollment updates