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Milk Marketing
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August Class III-IV milk: Prices lower, spread disappears

September 1, 2021
Dave Natzke
Federal Milk Marketing Order (FMMO) August 2021 Class III and Class IV milk prices were announced Sept. 1. Both were again lower than the previous month, and the gap between the two almost disappeared.
Read More

July DMC margin falls to $5.68 per cwt

September 1, 2021
Dave Natzke
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.
Read More

Dairy pandemic assistance: The devil is in the details

August 26, 2021
Dave Natzke
Details, timelines, analysis and comments continue to emerge following a USDA announcement, Aug. 19, unveiling the Pandemic Market Volatility Assistance Program (PMVAP) for dairy.
Read More

Dairy Donation Program details released

August 25, 2021
Dave Natzke
The USDA’s Agricultural Marketing Service (AMS) released details of the Dairy Donation Program (DDP), designed to increase dairy product donations to those in need while reducing food waste.
Read More

Cow numbers starting downward trend

August 20, 2021
Dave Natzke
A reduction in cow numbers and a smaller increase in milk output per cow helped slow U.S. milk production growth in July, according to the USDA’s latest Milk Production report, released Aug. 19. At 2%, July’s year-over-year milk production increase was the smallest since March.
Read More

Risk management calendar: August-September 2021

August 19, 2021
Dave Natzke
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.
Read More

USDA announces Pandemic Market Volatility Assistance Program for dairy

August 19, 2021
Dave Natzke
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.
Read More

Class III pooling, positive PPDs return but prices are lower

August 13, 2021
Dave Natzke
For many Americans, work and social activities are returning to some form of pre-COVID-19 normal. So is milk marketing through the Federal Milk Marketing Order (FMMO) system. Here’s Progressive Dairy’s monthly attempt to navigate through the numbers to see how “normal” might appear on your milk check.
Read More

USDA cuts 2021-22 milk production outlook but also reduces price projections

August 12, 2021
Dave Natzke
The USDA’s latest World Ag Supply and Demand Estimates (WASDE) report, released Aug. 12, reduced 2021 and 2022 milk production forecasts slightly on expectations of lower cow numbers going forward. Price projections were also reduced for both years due to larger supplies and weakening demand.
Read More

June DMC margin slips to $6.24 per cwt

July 30, 2021
Dave Natzke
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.
Read More
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