Falling Milk Prices Could Make MPP More Attractive

Dairy prices are falling, and they are falling more than expected.  The USDA's Outlook Board has lowered its price forecast this month, taking the average all-milk price for the year down to projected $15.85 cwt, roughly 10% less than what producers saw last year.

"Margins are getting tighter, not only because milk prices are falling, but you have to consider the other side of what they think is going to happen to corn and soy bean prices, so, what's going to happen to feed prices? So, they're not only concerned about the output, but what the input prices are going to do."

And when considering some of the higher futures prices corn and soybeans producers are seeing, Meyers says there might be a concern about a squeeze on both ends.  That Meyers says may have dairy operators paying attention to recent changes in MPP, including a new chance to sign up.

"So, certainly they'll be taking a look at that and saying, what do I want to do?"

Meyers notes now the program could be more attractive to more producers.

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