Dairy Margin Coverage triggers payments again
The Dairy Margin Coverage Program will be paying out to farmers for the eighth month in a row. USDA announced Friday the August income over feed margin is $6.46 per hundredweight.
So far, the risk management program has paid out more than 1.2 billion dollars, and the August payments to farmers are expected to be near 120 million dollars.
The Dairy Margin Coverage Program is a voluntary risk management program administered by USDA’s Farm Service Agency that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer.