The increase comes from lower milk prices in August. The Boston Class I price was $13.29 in August, down from $13.51 in July.
Feed costs continue to fall, and as in July, were not a factor in the August MILC calculation. USDA estimated that 100 lb. of 16% dairy ration cost $6.75, based on $3.32/bu corn; $9.85/bu soybeans and $100/ton alfalfa. To trigger additional MILC payments, feed costs must exceed $7.35. In July, the estimated feed cost was $7.18.
USDA also reported yesterday that the U.S. all-milk price was $12.70/cwt, the highest it has been since January of this year.