The May 2020 income-over-feed-cost dairy margin was $5.37 per hundredweight. That triggered the third payment in 2020 for dairy producers who purchased the appropriate level of coverage in the Dairy Margin Coverage program.
The U.S. Department of Agriculture’s Farm Service Agency has issued more than $176 million in program benefits to dairy producers who purchased dairy-margin coverage for 2020. Authorized by the 2018 farm bill, the voluntary risk-management program offers protection when the difference between the all-milk price and the average feed price decreases to less than a certain dollar amount selected by the producer. More than 13,000 dairy operations participated in the program for the 2020 calendar year.