Markets & Management

Generally, government shutdowns are not good for U.S. citizens. However, the shutdown at the beginning of this year benefited dairy farmers because implementation of Dairy Margin Coverage (DMC) was delayed. As a result, when DMC enrollment began in June, dairy farmers knew they would receive payments for January through April milk production. If enrolled at the highest margin coverage of $9.50 per hundredweight, January and February indemnity payments more than covered the premium cost for the entire year. By the time enrollment ended in September, dairy farmers knew that January through July margins would trigger payments, resulting in tremendous return on investment relative to premium costs. Read More