# May dairy economic update: MPP-Dairy can provide guaranteed payments, positive program cash flow at highest margin -  | Ag Proud

> USDA data showed the March 2018 national average dairy margin fell to $6.77 per cwt, the lowest since June 2016, as feed costs outpaced milk prices. The March U.S. average milk price was $15.60 per cwt. Changes in the Bipartisan Budget Act of 2018 now calculate MPP-Dairy margins monthly and lower Tier I premiums, with enrollment open until June 1.

- Date: 2018-05-02 · published 2018-05-02T12:00:00.000Z
- Category: policy · region US · magnitude low
- Page: https://feedsoft.ai/events/5127-may-dairy-economic-update-mpp-dairy-can-provide-guaranteed-payments-positive
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

A weaker margin raises the chance of MPP-Dairy indemnity payments, which can support farm milk output and cushion producers against low prices.

## Read by commodity

- MILK: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2023-10-13 | [Economic Update: Dairy Forward Pricing Program has expired, for now \| Ag Proud](https://feedsoft.ai/events/33771-economic-update-dairy-forward-pricing-program-has-expired-for-now-ag-proud.md) | -0.4% | +1.1% |
| MILK | 2018-05-31 | [MPP-Dairy: The deadline is now; payments already guaranteed for February through April -  \| Ag Proud](https://feedsoft.ai/events/9760-mpp-dairy-the-deadline-is-now-payments-already-guaranteed-for-february-through.md) | +0.9% | +0.4% |
| MILK | 2017-05-26 | [Economic analysis shows California FMMO  is positive for most dairy producers - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/71155-economic-analysis-shows-california-fmmo-is-positive-for-most-dairy-producers.md) | +5.8% | +4.7% |
| MILK | 2023-10-31 | [2023 Dairy outlook update: Little margin improvement in 2023 - Dairy Producer](https://feedsoft.ai/events/33627-2023-dairy-outlook-update-little-margin-improvement-in-2023-dairy-producer.md) | +1.8% | +1.6% |
| MILK | 2020-02-12 | [Weekly Digest: California quota program sunset proposal forwarded to CDFA - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/54736-weekly-digest-california-quota-program-sunset-proposal-forwarded-to-cdfa.md) | -0.4% | -4.2% |

## Sources

- agproud.com: https://www.agproud.com/articles/31027-may-dairy-economic-update-mpp-dairy-can-provide-guaranteed-payments-positive-program-cash-flow-at-highest-margin

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.