The Federal Milk Marketing Order (FMMO) advanced Class I base price has declined by 72 cents from April 2024 to $18.46 per hundredweight (cwt), the lowest since February. The Class I base prices averaged $18.58 per cwt through the first five months of 2024, a three-year low for the period. The spread in the monthly advanced Class III skim milk pricing factor ($3.88 per cwt) and advanced Class IV skim milk pricing factor ($8.99 per cwt) jumped for May to $5.11 per cwt, the widest since October 2022. Based on Progressive Dairy calculations, the Class I mover calculated under the “higher of” formula would also have resulted in a Class I base price of $20.21 per cwt, about $1.75 more than the actual price determined using the “average of plus 74 cents” formula.
Dairy producers have until April 29 to complete their enrollment in the Dairy Margin Coverage (DMC) program, administered by the USDA Farm Service Agency (FSA). The revised regulations of this risk management program extend coverage for 2024, retroactive to Jan. 1, and provides an adjustment to the production history of enrolled farms with less than 5 million pounds of production. To evaluate the varying levels of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.
The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform increased just 0.1% in an auction held April 16. Compared to the previous auction, prices for individual product categories were mostly lower to unchanged. The prices for anhydrous milkfat and whole milk powder increased slightly by 1.7% and 0.4%, respectively. Cheese prices decreased the most with cheddar cheese down 8.5% and mozzarella down 3.8%. Lactose and butter decreased a little over 1%, while there was little to no change in butter milk powder and skim milk powder.
The USDA unveiled a new online Livestock Indemnity Program (LIP) decision tool and farm loan resources available to agricultural producers and cooperators who help producers access USDA disaster assistance, farm loans, and other federal farm programs. The optional decision tool gives producers guidance on what is needed to gather and submit required loss documentation. The FarmRaise educational hub offers several easily navigated farm loan programs how-to videos designed to introduce producers to FSA’s many farm loan programs options and guide them through the application process. More FSA program resources and tools will soon be added to the FarmRaise educational hub.
