Federal Dairy Margin Coverage program compensates dairy producers when the difference between milk prices and feed costs drops below selected coverage level
- by Brian Williams and Dylan Turner
- 9/25/2024
When the “milk margin,” the difference between milk prices to producers and feed costs, narrows, dairy producers receive financial protection through the Federal Dairy Margin Coverage program. Through the first several years of the program, rising feed costs have squeezed the margin, resulting in higher payments to dairy farmers.