The Dairy Margin Coverage Program may be a beneficial risk management tool for dairy farmers again in 2021. That’s according to National Milk Producers Federation Senior Vice President for Member Services Chris Galen in the latest episode of the dairy defined podcast. Galen says there’s lots of uncertainty. “The outlook for margins is murky and not great. If you look at the cheese markets, there’s a significant downturn in the price of cheese, the biggest driver of farmer’s milk checks, and that is reflected in the margins as the year wraps up. In USDA’s DMC calculator, it’s showing below $9.50 margins in the first half of next year.” Farmers may want to keep this in mind as the December 11 DMC sign-up deadline gets closer.
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