In order to estimate county-level dairy MFP payments, Newton multiplied implied farm-level DMC production history data (based on 2015 production history scaled to 2018 levels) against the payment rate of 20 cents per hundredweight, with total payments capped at $250,000 per operation.
“Using this methodology, total dairy-related payments are estimated at the lower end of $351 million and reflect the restriction on trade aid payments exceeding $250,000 per farm operation,” he wrote. “The limitation of $250,000 equates to a production history of 125 million pounds of milk or a 5,400-cow operation.”
Counties in California claimed the top five county spots. At $22.8 million, dairy farmers in Tulare County will receive the most money, followed by those in Merced County at $10.8 million.
Check out the county map below:
For more analysis from Newton and the rest of the American Farm Bureau team, visit www.fb.org/market-intel.