Industry News

In December, the USDA released details regarding changes to the Dairy Margin Coverage (DMC) program, including hay price adjustments used to calculate monthly feed costs and margins, creation of a Supplemental DMC provision for small- and mid-sized dairy producers to update milk production history and establishment of a 2022 sign-up period.

In this column, Progressive Dairy summarizes issues in the news and attempts to describe how they might affect dairy farmers. Look for more extensive background and details at Progressive Dairy.

It took a roller coaster ride to get there, but December 2021 uniform milk prices in Federal Milk Marketing Orders (FMMOs) reached the highest level in more than seven years. Riding the recent wave in milk class prices, more Class III milk was pooled but more Class IV milk wasn’t.

Digest Highlights

• USDA milk production forecast steady, price outlook improves
• California QIP petitions filed
• Northeast organic partnership launched
• November 2021 butter, powder output lower
• USDA buys milk

Digest Highlights

• 47% of dairy cows still in ‘drought areas’
• December Class IV milk price hits $19.88 per cwt
• Dairy margins end December stronger
• USDA boosts school meal reimbursement levels

After a slower October, November strength in foreign sales of milk powders and cheese pushed the U.S. dairy export market toward a strong finish to 2021, according to the U.S. Dairy Export Council (USDEC).