September DMC Margin Sets Second Consecutive Monthly Record

The monthly margin under the Dairy Margin Coverage (DMC) program rose by $1.85/cwt from August’s previous record level to $15.57/cwt, again the highest since margin protection became the basic dairy safety net program in January 2015.

The September all-milk price was $25.50/cwt, $1.90/cwt higher than the month before, while the DMC feed cost formula inched up from August by $0.05/cwt of milk, mostly on offsetting price moves for corn and premium alfalfa.

The end of October dairy and grain futures indicated that the DMC margin would average around $12/cwt for all of calendar year 2024.