With the release of final feed and all-milk prices for August, the United States Department of Agriculture announced this week that the final dairy margin for July and August was $7.70/cwt. That means those producers who signed up for $8 margin insurance will receive an indemnity payment of 30¢/cwt for covered production.
The Dairy Margin Protection Program margin was below $8/cwt in every two-month period in 2015 thus far, though the May-June margin was just barely under at $7.99534/cwt.
The latest payment is based on an all-milk price that averaged $16.65/cwt in July and August, and feed costs that averaged $8.95/cwt.
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