Editor's note: Tables mentioned in this article were added at a later date. The U.S. average dairy farmer income over feed cost margin calculated under the Dairy Margin Coverage (DMC) program improved in September, the first month-to-month increase since last spring.

Update Highlights

• 2021 DMC payments hit $981 million
• November 2021 Class I base price moves closer to $18
• September dairy cull cow slaughter highest since March
• DMI-NMPF October Dairy Market Report availableDairy Market Report available

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

Digest Highlights

• Thirty-nine percent of dairy cows in ‘drought' areas
• O’Brien to succeed Gallagher as head of DMI
• Multichannel checkoff campaign launched to reach Gen Z
• Stonyfield to take in some Northeast farms facing contract terminations
• Agropur adding Wisconsin cheese production capacity
• CDI building UHT-ELS fluid plant
• USDA grant to fund algae dairy feed research
• The number of the week: Dairy consumption
• Coming up: PVMAP details; September uniform prices and PPDs

The COVID-19 pandemic taught and continues to teach numerous lessons to those of us in the dairy industry. We found out in March 2020 that the processing and packaging part of the industry could adapt but was not very nimble in doing so.

Digest Highlights

• August cull cow prices were highest in four years
• Dairy margins improved to end September
• June 2021 mailbox, all-milk price spread declines
• ‘Class I mover’ options analyzed
• Global Dairy Trade index unchanged
• Vitaliano: Prices settle into traditional alignment
• Prairie Farms’ Mullins stepping down as CEO
• Inflation concerns grow in latest Ag Economy Barometer
• USDA accepts bids for process cheese
• Things you might have missed

The Dairy Margin Coverage (DMC) program set three new records in August: (1) the highest total monthly average feed costs; (2) the smallest average milk income over feed cost margin; and (3) the largest indemnity payments for any month in the history of the dairy safety net program.

Digest Highlights

• January-July 2021 DMC payments top $817 million
• October 2021 Class I base price inches above $17
• 4-H, college judging jump-starts World Dairy Expo
• Global ‘Pathways to Dairy Net Zero’ launched
• USDA call for cheddar, process cheese
• FARM Program releases version 5.0 survey

With fall harvest dominating your days, keeping tabs on risk management may be secondary. To help keep track of price protection opportunities, Progressive Dairy provides monthly online updates of important dates and reports affecting risk management tools.

Update Highlights

• What if? Milk production growth management plans evaluated
• DMC: A tale of three risk management levels
• Global Dairy Trade index shows strength
• Ag Economy Barometer: Outlook better but clouded by inflation