Feed costs and milk supply and demand are squeezing the income-over-feed-costs margins for dairy producers. The Dairy Margin Coverage (DMC) has paid out since corn and soybean prices started to climb last fall, and the drought conditions in many parts of the country have not helped with alfalfa prices. The DMC uses a feed cost formula based on 59 percent corn (bushel * 1.192), 27 percent alfalfa hay (ton * .0152) and 14 percent soymeal (ton * .00817) to subtract from the-all milk price to calculate the margin. Margins below $9.50 per cwt are eligible for payments. Margins of $4.00 per cwt trigger payments, and between $4.50 and $9.50 per cwt producers have to pay premiums for the coverage.
The DMC program was created i...
What You Need to Know Today: Markets got a surprise with a corn yield of 181.2 bushels/acre in the October WASDE, above the average estimate of 177.6 bushels/acre and up from USDA’s September estimate of 178.5 bushels/acre. Although stronger demand is expected to absorb some of the addit...
Key Takeaways: On Friday afternoon, President Trump announced that Russia will “immediately supply over 300,000 Tons of Diesel Fuel” to the United States. The deal, typical of this administration, is light on details but promises an additional 500,000 tons in November and 1 m...
The USDA has lowered its 2026 red meat production forecasts slightly while forecasting a slight increase in broiler production. Beef is now projected at 24.802 billion pounds, 75 million pounds less than in September. Cow slaughter is expected to be up; however, this will be offset by lower ste...
