In June, the Farm Service Agency reported a margin of $3.65 per hundredweight above feed costs. That’s the smallest level since the Dairy Margin Coverage program was authorized in the 2018 farm bill. American Farm Bureau Federation Economist Danny Munch says it’s the sixth straight month of margins below the $9.50 per hundredweight trigger. “That’s the first time the programs catastrophic’ $4 protection level had been breached.” Munch said feed costs are continuing to chip away at the bottomline for dairy farmers.
