The Value of a Safety Net: $981 Million in DMC Payments Distributed Thus Far
One thing dairy farmers learned in 2020 was the value of safety net programs. The Dairy Margin Coverage (DMC) program, authorized by the 2018 Farm Bill, offers market protection to dairy producers when the difference between the all-milk price and the average feed cost falls below a certain dollar amount selected by the producer.
Dairy compensation payments arrive
About half of Canada’s dairy farmers have received their second trade compensation payments from the federal government, said agriculture minister Marie-Claude Bibeau last week.
California is Different!
California is different in many ways. Today’s post will deal with the issue of negative Producer Price Differentials (PPD) and component payments and how they do and do not impact California producer milk payments.
Dairy Receives $790M in CFAP2 Payments–So Far
The United States Department of Agriculture (USDA) reports that dairy farmers received $790 million in Coronavirus Financial Assistance Program 2 benefit thus far.
USDA Not on Track to Hit $16 Billion in CFAP Payments
As of last week, USDA paid out just over $6 billion of the $16 billion in CFAP payments. One agricultural economist says with USDA not on track to release the full $16 billion, lower CFAP payments could also change 2020 net farm income projections. ( MGN )
