MPP Dairy: What's Your Margin?

December 22, 2015 12:37 PM
girl pouring milk into glass

By Dave Natzke

USDA uses national average milk, corn and alfalfa hay prices, along with a soybean meal price, to calculate the monthly Margin Protection Program for Dairy (MPP-Dairy) income margin.

It's difficult to drill down into regional and state margins based on USDA data, since milk prices are averaged for 23 states, average alfalfa hay prices are reported for 18 of those states, and corn prices are reported for 12 of the major dairy states.

Alfalfa hay, corn and milk prices are reported for 11 common states. Including the single soybean meal price for those 11 states, Dairy Herd Management calculated individual state margins for October 2015, using the MPP-Dairy formula.


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