- Major export business this week
- Battle between good weather and crops
- Is there inflationary concern with the dollar?
- Record prices in China…how short are they on food?
- Little boy that called woof.
- Dairy price update
A total of 50 members of Congress sent a bipartisan letter to U.S. Trade Representative Robert Lighthizer this week, urging him to work swiftly on a Phase Two Agreement with Japan.
The letter was also sent to Ag Secretary Sonny Perdue. They say the recent Phase One agreement with Japan made progress on several important issues, but American farmers and processors remain at a disadvantage against competitors, thanks to the Japan-European Union and the Comprehensive Progressive Agreement for Trans-Pacific Partnership agreements.
That’s why Wisconsin Representative Ron Kind and his colleagues are asking Lighthizer and Perdue to maximize opportunities for dairy farmers by addressing these remaining gaps and inequalities in market access during the next round of negotiations. Due to depressed milk prices and a suffering rural economy, dairy farmers are facing tough conditions and struggling to stay afloat.
The USDA says 6,000 dairy farms have gone out of business over the last several years, underscoring the need for trade agreements that can expand overseas markets for the U.S. dairy industry. The letter also points out that Japan is one of the top five overseas markets for U.S. dairy products and the demand will only continue to grow.
The Department of Agriculture’s Farm Service Agency announced the May 2020 income over feed cost margin triggered the third payment in 2020 of the Dairy Margin Coverage program.
In May, the income over feed cost margin was $5.37 per hundredweight. To date, FSA has issued more than $176 million in benefits to dairy producers who purchased DMC coverage for 2020. Authorized by the 2018 farm bill, DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price, the margin, falls below a certain dollar amount selected by the producer.
Over 13,000 operations enrolled in the program for the 2020 calendar year. Although DMC enrollment for 2020 coverage has closed, signup for 2021 coverage will begin October 13 and will run through December 11, 2020. For more information, visit the farmers.gov DMC webpage or contact your local USDA Service Center.