Milk prices for July in the US were up by $1.30 (2.5 c/l) to $16.10 (31c/l) per 100lb.
The margin calculated by the US Department of Agriculture (USDA) for the dairy margin protection was up from $5.75 (11.5 c/l) in June to $7.59 (14.55 c/l).
Dairy margin protection is a state-sponsored insurance scheme where dairy farmers in the US can protect their operating margin for a small premium.
The premium is variable depending on level of margin covered. The margin is the difference between milk price and cost of feed.
Wait for determination of eligibility
Farmers will have to wait until the end of September to see August milk prices, which will be averaged with July prices to determine if they qualify for any dairy margin protection.
Given the $7.59/100lb margin in July and milk prices rising, only farmers who paid for the highest levels of premium will be eligible for payment of this protection.
Source: FarmersJournal
Link: http://www.farmersjournal.ie/us-milk-price-rise-rules-out-farmers-margin-protection-224056