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Industry News

Read coverage of current events and news affecting dairy producers and the industry.

LATEST

The first of what is likely to be many months of Dairy Margin Coverage (DMC) payments for enrolled producers has begun.

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U.S. dairy and congressional leaders continue to push for elimination of payment caps on direct payments to producers under the Coronavirus Food Assistance Program (CFAP). The program was announced by the USDA on April 17, but specific details related to how producer payments will be calculated has not been released as of April 30.

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Editor’s note: On April 29, USDA Ag Marketing Service Administrator Bruce Summers announced the agency would not move forward on the request for a public hearing to consider temporarily raising the Class I base price. Read the full statement here.

The USDA’s Agricultural Marketing Service (AMS) has received a request for an emergency hearing to consider a temporary increase in the Federal Milk Marketing Order (FMMO) Class I base price to help dairy farmers through a period of extremely low milk prices. However, the request is also raising concerns over long-term implications of the proposal.

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While dairy producers continue to wait for details regarding the direct federal financial aid they’ll receive under the Coronavirus Food Assistance Program (CFAP), those participating in dairy risk management programs should start to see indemnity payments later this spring. However, less than half of U.S. annual milk marketings are covered under the Dairy Margin Coverage (DMC) and Dairy Revenue Protection (Dairy-RP) programs.

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U.S. milk production rose in March before the full impact of the COVID-19 outbreak reached back to the farm.

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