MPP Milk-Feed Margin Tops $8 in September

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U.S, November 3, 2018: For the first time since January, the milk-feed margin calculated under the United States Department of Agriculture’s (USDA) Margin Protection Program (MPP) came in above $8/cwt in September. It’s also, then, the first time since January dairy farmers signed up for $8 coverage will not receive a payment according to milkbusiness.com

The actual margin came in at $8.26/cwt, largely on the strength of an 80¢/cwt bump in the All-Milk price to $16.70. That’s the highest All-Milk price of 2018.

Feed prices for September were $3.39/bu for corn, $180/ton for alfalfa and $318.32 for soybean meal. The calculated feed price per hundredweight of milk came in at $8.44, the second lowest feed price of the year. Only February feed prices were lower, at $8.42.

From February through August, the MPP milk/feed margin averaged $6.94, resulting in an average MPP payment of $1.06 for those seven months for producers signed up at the $8 level. The highest payment came in April, at $1.38, and the lowest in August, at 57¢.

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