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USDA's Farm Service Agency has begun paying Dairy Margin Coverage to producers, about $100 million for January through May. The May income-over-feed margin of $9.00/cwt triggered the fifth payment for producers who bought the $9.50 coverage level.
Support payments help keep dairy herds in production despite tight margins, sustaining feed demand, though the payments do not directly move feed or milk prices.
blogs.extension.iastate.eduJul 12, 2019After 93 past neutral policy events, Milk (Class III) moved a median -0.0% over 5 sessions (48% higher; middle half -0.6% to +0.6%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
