Calculation of average feed cost and actual dairy production margins.

CFR · 2024-01-01 · US · Title 7

(a) Payments are made to a participating dairy operation as specified in this subpart only when the calculated average actual dairy production margin for a month is below the coverage level in effect for the participating dairy operation. That margin will be calculated on a national basis and is the amount by which for the relevant month, the all milk price exceeds the average feed cost for dairy producers. The average actual dairy production margin calculation applies to all participating dairy operations. The calculations are not made on an operation by operation basis or on their marketings. (b) For calculating the national average feed cost that dairy operations use to produce a cwt of milk, the following three items will be added together: (1) The product determined by multiplying 1.0728 by the price of corn per bushel; (2) The product determined by multiplying 0.00735 by the price of soybean meal per ton; and (3) The product determined by multiplying 0.0137 by the price of alfalfa hay per ton. (c) To make those feed calculations, the Deputy Administrator on behalf of CCC will use the following full month data: (1) For corn, the full month price received by farmers during the month in the United States as reported in the monthly Agricultural Prices report by USDA NASS; (2) For soybean meal, the Central Illinois soybean meal price delivered by rail as reported in the USDA AMS Market News-Monthly; and (3) For alfalfa hay, the full month price received during the month by f

official document · source cfr-2024 · id 7:§ 1430.411