The Center for Dairy Excellence’s monthly “Protecting Your Profits” call will be held on Wednesday, June 26 at noon. The call will be led by Zach Myers, Risk Education Manager with the Center.
During the call, Myers will review industry numbers and discuss how Class III and IV dairy futures are trading higher compared to this time last month. Class III milk futures are averaging $17.09/cwt for the rest of the year, $0.43/cwt higher than this time last month. Class IV prices continue to trade higher than Class III and are averaging $17.40/cwt for the rest of the year, $0.13 higher than last month. April dairy cow slaughter was up 7.87 percent over April 2018. April milk production was up 0.22 percent, and dairy cow numbers were down 0.78 percent from April 2018.
Myers will also share the final rules for Dairy Margin Coverage (DMC), which were released on June 13, 2019. The margin calculation was changed to include a 50 percent/50 percent blended price of premium quality/superior quality hay. This change benefits dairy farmers because the previous equation used the premium hay price only. Previous secured margins for January to March were $7.99, $8.22 and $8.85. With the new calculation, January to April margins are $7.71, $7.91, $8.66 and $8.82, respectively. Sign-ups for the new DMC Program opened on Monday, June 17, with producers encouraged to visit their local FSA Office to enroll. Dairy Revenue Protection (RP) policies for fourth quarter 2019 to fourth quarter 2020 are now available for purchase through an Authorized Insurance Provider through September 15, 2019.
Join the Center on June 26 to look at the dairy industry from a regional, national and global perspective. Find out how these new programs and the conventional price risk management tools can fit in to your marketing plan. All are welcome to participate at no cost in the upcoming “Protecting Your Profits” conference call. To register and obtain the conference line information, please call 717-346-0849 or email Myers.
The call will start promptly at noon and last approximately 15 minutes. Calls are recorded and posted on the Center for Dairy Excellence website for those who are unable to join the live session.