The Farm Service Agency announced this week the March 2019 income over feed cost margin was $8.85 per hundredweight, a level which triggers the third payment for dairy producers who purchase the appropriate level of coverage under the new Dairy Margin Coverage program.
The new program replaces the Margin Protection Program for Dairy and offers protection to dairy producers when the difference between the all-milk price and the average feed cost falls below a certain dollar amount selected by the producer.
The signup period for the new Dairy Margin Coverage program opens June 17, 2019. Dairy producers who elect a coverage level between $9 and $9.50 would be eligible for a payment for January, February and March 2019. FSA Administrator Richard Fordyce says that under certain coverage levels, the amount to be paid to dairy farmers for the months of January, February and March already exceeds the cost of the premium. He encouraged all dairy operations to sign up for the program when it becomes available.