Milk prices moved to a four-month low while hay and corn prices increased, pressuring the Dairy Margin Coverage (DMC) program margin to its lowest level in more than a year.

Digest Highlights

• PMVAP, DMC update conference call scheduled
• USDA analyzing Class I exemption request
• USDA accepts bids for fluid milk, butter
• Exports still on ‘solid’ ground
• USDA raises U.S. dairy export forecasts
• Things you might have missed

Details, timelines, analysis and comments continue to emerge following a USDA announcement, Aug. 19, unveiling the Pandemic Market Volatility Assistance Program (PMVAP) for dairy.

Digest Highlights

• 2021 DMC premium payment deadline is approaching
• Dairy cull cow slaughter picks up pace
• USDA accepts bids for 2.3 million pounds of cheese
• Chapter 12 bankruptcy filings were lower
• Things you might have missed

Schools are opening, and football season is getting started. With autumn just a month away, it’s time to update Progressive Dairy’s risk management calendar and review late summer margin conditions.

Editor's note: The USDA's Agricultural Marketing Service has posted additional information covering the Pandemic Market Volatility Assistance Program for Dairy. Milk handlers and dairy cooperatives whose producers are eligible to receive payments will be notified the week of Aug. 23. The USDA will host an information webinar for eligible handlers and cooperatives who will need to indicate intentions to participate by Sept. 10. The USDA has released some details of a $350 million Pandemic Market Volatility Assistance Program, providing targeted financial assistance to U.S. dairy producers. Progressive Dairy will provide additional details as they become available.

Slightly lower overall feed costs were more than offset by a decline in milk prices, translating into June 2021 Dairy Margin Coverage (DMC) program indemnity payments that will be the second largest of the year.

Update Highlights

• June DMC margin announced on July 30
• August 2021 Class I base price falls below $17
• April 2021 mailbox, all-milk price spread continues
• Semiannual dairy cow and heifer survey reflects growth
• Washington dairy worker overtime requirement kicks in
• Things you might have missed

The Farmers’ Almanac says the “dog days” refer to what is often the hottest and most sultry time of summer, when lethargy and indolence tend to reign due to the heat. Time to find some shade and review dairy risk management programs and the July-August calendar.

Digest Highlights

• Lawmakers urge reimbursement for Class I mover-related losses
• Bills would ban CAFOs
• June 2021 retail dairy sales: ‘Normalizing’ and strong
• January-May 2021 DMC payments top $550 million
• Things you might have missed: FDA and yogurt, Midwest cheese, Hiland Dairy, crop insurance, COVID-19 livestock losses and more