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CFAP 2: Dairy payment is $1.20 per hundredweight

September 18, 2020
Dave Natzke
Editor's note: The original article has been edited to clear up information on the dairy payment rate. Details of a second Coronavirus Food Assistance Program (CFAP 2) have been announced. For dairy producers, direct payments will equal $1.20 per hundredweight (cwt) on eligible milk production for the last nine months of 2020.
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August milk production remains strong

September 17, 2020
Dave Natzke
U.S. milk production continued to build in August, up 1.8% from a year earlier, according to the USDA’s preliminary monthly Milk Production report, released Sept. 17. In addition, July 2020 production was revised upward about 0.5% (91 million pounds) from last month’s preliminary estimate, pushing total U.S. output up 2% from July 2019.
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No news on CFAP 2 yet

September 16, 2020
Dave Natzke
The USDA was expected to announce rules for a second round of the Coronavirus Food Assistance Program (CFAP) last week. However, no details have been released as of Sept. 16. Check back for updates as they become available.
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August: Negative PPDs hang on but uniform prices mixed

September 15, 2020
Dave Natzke
Negative producer price differentials (PPDs) improved on August milk marketings, but they didn’t go away, based on Federal Milk Marketing Order (FMMO) monthly milk utilization and uniform price calculations. August uniform milk prices across all 11 FMMOs were mixed compared with a month earlier.
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Make calendar part of your cow culling strategy

September 11, 2020
Dave Natzke

While there’s no guarantee it will happen, long-standing market patterns and current weather conditions point to the potential of weaker cull cow prices ahead. Mark Linzmeier, dairy marketing adviser and owner of Linzmeier Business Solutions LLC, provides a “heads up” for anyone who has been holding on to dairy cows (and USDA numbers indicate you are) but are considering culling as milk prices come off peaks for the remainder of 2020.


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