Dairy farmers in the Upper Midwest may not get as much of a payment in USDA’s Pandemic Market Volatility Assistance Program. This new program focuses on Class I fluid milk sales, while the Upper Midwest produces cheese. The USDA said on Thursday they will update the feed cost formula in DMC to better reflect the actual costs dairy farmers will pay for high quality alfalfa. The change will be retroactive to January 2020. This is expected to provide additional retroactive payments of $100 million for 2020 and 2021. It is unclear when supplemental payments for the feed cost adjustment and DMC production history adjustment will be distributed.
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