Dairy Margin Coverage and Dairy Revenue Protection programs have blunted the pain of $15 Class III milk. Ever Ag Insights President Phil Plourd says these programs have had a major impact. “The bottom line is that the steady stream of DMC payments this year has been a lifeline for a lot of small-to-medium-size producers,” said Plourd. “And if you look at the DRP program on top of that, it paid out more than $400 million through Q3 in net indemnities. For producers using that program, that’s also been a big help.” U.S. dairy export demand is stagnant. Domestic demand is also flat. “If you look at the three big pizza chains that report publicly, none of them had a good quarter in Q3. Consumer credit card debt is at all-time record levels so while things aren’t terrible, the consumer has gotten a little more conservative in this economic climate.” In Plourd’s view, all segments of the dairy industry struggled in 2023. The export outlook has the potential to improve, offering optimism as we get into 2024.
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