USDA recently announced how they were going to divvy up $12 billion aid package to U.S. farmers. While soybean farmers will get the majority of the payments, dairy producers will get about 3% of the total pot, or about $212 million.
The total aid package is split into three categories. The largest is direct payments to farmers, of which dairy producers stand to get about $0.12 per cwt of milk with payments capped at $125,000 for any one dairy operation. The next largest part of the package is food purchases, at about 22% of the allocation or $1.4 billion. The last 3% of the package, or $200 million, goes to agricultural trade promotion.
It remains to be seen how these allocations will impact the milk price for the remainder of 2018 and into 2019, says Nate Donnay, director of dairy market insight at INTL FCStone. Here’s how each of the three areas could have an impact:
Read more on Farm Journal's MILK.