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Milk margins going down, down, down

Wed, 06/03/2015

They’ve dropped by more than half since October, almost entirely because of milk prices.

by Dennis Halladay, Hoard’s Dairyman Western Editor

Monthly feed cost data used in the Margin Protection Program- Dairy (MPP-Dairy) paints a clear picture of what is behind the more than 50 percent drop in average dairy producer margins that has taken place in the last six months.

It is those officially computed figures that determine whether producers who bought extra margin protection insurance above the program’s $4 per hundredweight baseline will receive payments under the program. Read more

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