Dairy producers are currently hopeful for more favorable milk prices in the upcoming year to enhance profitability. However, the forecast for milk prices in the first quarter appears less than optimistic, leading producers to consider alternative strategies. One such strategy is relying on the DMC program, which proved beneficial in 2023, to yield substantial payouts in the upcoming year.
The October milk marketing report revealed that DMC indemnity payments, distributed over the first ten months of 2023, have surpassed $1.27 billion. This figure translates to an average of $74,453 per dairy operation. The 2023 DMC program saw the participation of approximately 17,059 dairy operations, accounting for about 74.5% of operations with an established production history. It is important to note that all 2023 DMC indemnity payments were subjected to a 5.7% sequestration deduction.
In a notable development earlier this year, the continuation of the current Farm Bill through Sept. 30, 2024, was enacted. This extension ensures the stability of programs like the DMC for an additional year. However, dairy producers are currently awaiting further details on the 2024 DMC enrollment process.
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Categories: Wisconsin, Livestock, Dairy Cattle