The national average margin for January 2021 is at $7.14 per cwt., which USDA said will mean Dairy Margin Coverage (DMC) payments are triggered for January.
Dairy operations that elected Tier 1 margin coverage levels $9.50, $9.00, $8.50, $8.00, $7.50 per cwt. and Tier 2 margin coverage levels at $8.00, $7.50, will be issued a payment.
DMC payments are triggered when the difference between the national all milk price and the national average feed cost falls below the margin trigger selected by producers.
Enrollment in DMC has fallen below expectations even as the program has triggered payments for some of the coverage levels at least the last two months.
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