Industry News

Editor’s note: This article has been updated to include information on sequestration and establishment of milk production histories for those dairy operations not enrolled in the Margin Protection Program for Dairy (MPP-Dairy).

Most U.S. dairy farmers suffering economic losses from the ongoing tariff wars will receive about 12 cents per hundredweight (cwt) on half of their highest annual milk production history in 2011-13, according to a USDA announcement on Aug. 27. Dairy organizations were disappointed in the level of direct aid, estimated at $127.4 million.

You’re busy – milking cows, managing employees, making hay.

A California federal court is reviewing a proposed $40 million settlement agreement in a class action lawsuit stemming from nonfat dry milk (NFDM) sales dating back to 2006.

A decline in cow numbers and a modest gain in milk output per cow helped limit July 2018 U.S. milk production growth to just 0.4 percent compared to a year earlier. Reviewing the USDA estimates for July 2018 compared to July 2017:

• U.S. milk production: 18.35 billion pounds, up 0.4 percent
• U.S. cow numbers: 9.396 million, down 8,000 head
• U.S. average milk per cow per month: 1,953 pounds, up 10 pounds
• 23-state milk production: 17.3 billion pounds, up 0.4 percent
• 23-state cow numbers: 8.735 million, up 1,000 head
• 23-state average milk per cow per month: 1,980 pounds, up 8 pounds
• Source: USDA Milk Production report, Aug. 20, 2018

The USDA’s Risk Management Agency announced the long-awaited launch of the Dairy-Revenue Protection (Dairy-RP) milk revenue insurance program. Developed by the American Farm Bureau Federation (AFBF), American Farm Bureau Insurance Services and other collaborators, the program is now in the hands of authorized crop insurance agents, who are attending workshops and preparing spreadsheets and actuarial tables for the start of the application period, Oct. 9. Here’s what we think we know so far. Watch Progressive Dairyman for additional information.

Digest Highlights

• June fluid milk sales slump, but not all the news is bad
• Italian mozzarella maker to build plant in northeast Indiana
• California doubles down on digester projects
• FMD detection possible through bulk milk sample
• Pennsylvania unveils Dairy Development Plan