DMC payments will be large for March milk (JAV)

 Dairy producers participating in the 2021 Dairy Margin Coverage (DMC) program will again see hefty indemnity payments for March milk marketings. The USDA released its latest Ag Prices report on April 30, including factors used to calculate monthly DMC margins and payments. Based on those factors, the March DMC milk income over feed cost margin is just $6.46 per hundredweight (cwt), a slim 24-cent improvement over February 2021 and the fourth time the monthly margin has been below $7 per cwt in the past 12 months, when the onset of the COVID-19 pandemic sent milk prices plummeting. At that level, the March margin triggers indemnity payments on Tier I and Tier II milk insured at all levels above $6.50 per cwt. ...