With monthly USDA prices for milk and feed components (corn, blended alfalfa hay, and soymeal) resulting in a National average margin in February of $6.22 per cwt., dairy operations with Tier 1 coverage levels under the Dairy Margin Coverage (DMC) will see payments triggered for levels at $9.50, $9, $8.50, $8, $7.50, $7 and $6.50.
Payments under Tier 2 coverage levels are triggered for $8, $7.50, $7, and $6.50.
For Tier 1, payments will range from $0.28 per cwt. at $6.50 coverage to $3.28 per cwt. for $9.50 coverage. The Tier 2 payments will range from $0.28 per cwt. for $6.50 coverage and $1.78 per cwt. for $8.
