OUR MISSION: "TO EDUCATE, PROMOTE AND REPRESENT DAIRY PRODUCERS AND FOSTER AN ENVIRONMENT FOR GROWTH OF THE KENTUCKY DAIRY INDUSTRY."
We are dairy farmers, multiple allied industries and professional advisory supporters working together to sustain and grow Kentucky's dairy industry. Dairy farmers work hard every day to provide fresh, wholesome, quality milk and dairy products to consumers. We love our land, the animals in our care and way of life on the farm. Dairy cows are economic generators. The average dairy cow generates over $13,700 in economic ripple effect each year.
The KDDC Goals are:
1. To increase producer profitability 2. To improve dairy farmer's competitiveness
3. To enhance dairy farm families' quality of life 4. To assist in the viability of KY's dairy industry
To learn more about the KDDC
Email: kddc@kydairy.org or
call 859-516-1129.
1. To increase producer profitability 2. To improve dairy farmer's competitiveness
3. To enhance dairy farm families' quality of life 4. To assist in the viability of KY's dairy industry
To learn more about the KDDC
Email: kddc@kydairy.org or
call 859-516-1129.
Milk Matters Newsletter July/August 2019
Feed Cost Margin Triggers First 2019 Dairy Safety Net Payment
The U.S. Department of Agriculture’s Farm Service Agency (FSA) announced that the January 2019 income over feed cost margin was $7.99 per hundredweight, triggering the first payment for eligible dairy producers who purchase the appropriate level of coverage under the new but yet-to-be established Dairy Margin Coverage (DMC) program.
DMC, which replaces the Margin Protection Program for Dairy, is a voluntary risk management program for dairy producers that was authorized by the 2018 Farm Bill. DMC offers protection to dairy producers when the difference between the all milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.
Agriculture Secretary Sonny Perdue announced that sign up for DMC will open by mid-June of this year. At the time of sign up, producers who elect a DMC coverage level between $8.00 and $9.50 would be eligible for a payment for January 2019.
For example, a dairy operation with an established production history of 3 million pounds (30,000 cwt.) that elects the $9.50 coverage level for 50 percent of its production could potentially be eligible to receive $1,887.50 for January.
Sample calculation:
$9.50 - $7.99 margin = $1.51 difference
$1.51 times 50 percent of production times 2,500 cwt. (30,000 cwt./12) = $1,887.50
The calculated annual premium for coverage at $9.50 on 50 percent of a 3-million-pound production history for this example would be $2,250.
Sample calculation:
3,000,000 times 50 percent = 1,500,000/100 = 15,000 cwt. times 0.150 premium fee = $2,250
Operations making a one-time election to participate in DMC through 2023 are eligible to receive a 25 percent discount on their premium for the existing margin coverage rates.
USDA launches Dairy Margin Coverage decision making tool
www.dairyherd.com/article/usda-launches-dairy-margin-coverage-decision-making-tool?
The U.S. Department of Agriculture’s Farm Service Agency (FSA) announced that the January 2019 income over feed cost margin was $7.99 per hundredweight, triggering the first payment for eligible dairy producers who purchase the appropriate level of coverage under the new but yet-to-be established Dairy Margin Coverage (DMC) program.
DMC, which replaces the Margin Protection Program for Dairy, is a voluntary risk management program for dairy producers that was authorized by the 2018 Farm Bill. DMC offers protection to dairy producers when the difference between the all milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.
Agriculture Secretary Sonny Perdue announced that sign up for DMC will open by mid-June of this year. At the time of sign up, producers who elect a DMC coverage level between $8.00 and $9.50 would be eligible for a payment for January 2019.
For example, a dairy operation with an established production history of 3 million pounds (30,000 cwt.) that elects the $9.50 coverage level for 50 percent of its production could potentially be eligible to receive $1,887.50 for January.
Sample calculation:
$9.50 - $7.99 margin = $1.51 difference
$1.51 times 50 percent of production times 2,500 cwt. (30,000 cwt./12) = $1,887.50
The calculated annual premium for coverage at $9.50 on 50 percent of a 3-million-pound production history for this example would be $2,250.
Sample calculation:
3,000,000 times 50 percent = 1,500,000/100 = 15,000 cwt. times 0.150 premium fee = $2,250
Operations making a one-time election to participate in DMC through 2023 are eligible to receive a 25 percent discount on their premium for the existing margin coverage rates.
USDA launches Dairy Margin Coverage decision making tool
www.dairyherd.com/article/usda-launches-dairy-margin-coverage-decision-making-tool?
Calendar of Events:
November
Nov 19 KDDC Board Meeting, Taylor County
Nov 21-23 Dairy Challenge, Taylor Co Extension office
November
Nov 19 KDDC Board Meeting, Taylor County
Nov 21-23 Dairy Challenge, Taylor Co Extension office
