Dairy Production and Dairy Margin Coverage
Acting World Agricultural Outlook Board Chair Mark Jekanowski
"We trimmed production a little bit based both on lower cow numbers and a little bit of a decline in the growth of the milk per cow."
2020 prices for Both fat-based and skim-based products were adjusted down month over month but he says both classes are expected to rise overall in 2020 Exports of both were trimmed down a bit month over month as well, he says year over year, milk production is expected to increase 3.4%.
Meanwhile more than 55% of Colorado dairies with established production are participating in the new Dairy Margin Coverage Program with payments totaling more than 1.1 million dollars to 52 operations
The 2018 Farm Bill authorized the new Dairy Margin Coverage (DMC) program, a voluntary risk management program . DMC offers protection to dairy producers when the difference between the all milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer.
Enrollment for the Dairy Margin Coverage (DMC) program opened on June 17 and FSA began issuing payments to producers on July 11