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: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
