The USDA has approved $1.2 billion in contracts to support U.S. farmers and communities in need through the Farmers to Families Food Box Program. The funding includes $317 million specifically for dairy products, more than $700 million for fruits, vegetables and meat products, and another $175 million in combination boxes of fresh produce, dairy or meat products.

U.S. exports of dairy products and hay were strong in March, but foreign sales of dairy replacement heifers weakened under the growing pressure of the COVID-19 pandemic. Following is a summary of export activity in the the three dairy categories routinely followed by Progressive Dairy, as well as others trade news updates impacting dairy.

• Dairy product exports on 7-month run
• Dairy heifer exports weaken
• China buying hay but shipping a concern
• Monthly ag trade balance turns deficit
• USMCA implementation date disputed
• USTR rebukes EU over dairy trade policies
• U.S. export impact: Japan adds to COVID-19 support

We’ve either seen it with our own eyes or caught the images flooding social media: The cattle markets collapsing and barren grocery store meat cases without a package of ground beef in sight.

Digest Highlights

• USDA adding $120 million to ‘Section 32’ dairy purchases
• Class III and IV futures prices improve
• Global Dairy Trade index lower
• Pennsylvania dairy campaign urges consumers to buy local
• USDA offers new, 30-year regional CRP pilot program
• Progressive Dairy COVID-19 resources

There’s no disputing the dairy farmer income destruction as a result of the COVID-19 pandemic. There is, however, some good news emerging for producers and the dairy supply chain, according to presenters on a Professional Dairy Producers of Wisconsin The Dairy Signal podcast, May 5.

U.S. milk quality – measured in terms of somatic cell counts (SCC) – improved again in 2019, according to the annual summary of Dairy Herd Improvement (DHI) test-day results.

Editor's note: This article has been updated from the original to include additional comments. The U.S. Department of Justice (DOJ) concluded its investigation into proposed acquisitions of bankrupt Dean Foods’ facilities by Dairy Farmers of America (DFA) and Prairie Farms Dairy, ordering three of 44 plants purchased by DFA must be divested to satisfy antitrust obligations.

Digest Highlights

• Quarterly dairy replacement cow prices slide a little
• USDA buying dairy products
• USDA funding Dairy Business Innovation initiatives
• Progressive Dairy COVID-19 resources

The first of what is likely to be many months of Dairy Margin Coverage (DMC) payments for enrolled producers has begun.

U.S. dairy and congressional leaders continue to push for elimination of payment caps on direct payments to producers under the Coronavirus Food Assistance Program (CFAP). The program was announced by the USDA on April 17, but specific details related to how producer payments will be calculated has not been released as of April 30.