USDA says Dairy Margin Coverage payments triggered for March
The USDA says there will be Dairy Margin Coverage payments to cover March losses. FSA Administrator Richard Fordyce says the income over feed cost margin was $9.15 per hundredweight that month, triggering the first payment of the year for producers who purchased the appropriate level of coverage in the program.
March data triggered the first payment in the DMC program in seven months. Fordyce says current projections indicate that a DMC payment is likely to trigger every month for the remainder of 2020. Before the COVID-19 pandemic, some market models had forecast no program payments for 18 months until at least 2021.