Milk prices, components, questions and CFAP 2 2020 will go down in the record books as unforgettable for many reasons. Ohio dairy farmers will certainly remember the $24 July Class III price that looked and felt like $16 when the milk check came … which followed the equally memorable $21 June Class III price that turned into $13.99 per hundredweight in the milk check.
Record-negative producer price differentials wreaked havoc whether there were risk-management plans in place, or not. Questions abound. Why did this happen? How? What does the future hold for dairy consumption, trade, and prices?
Miniseries
To help answer these questions, we invite you to grab your lunch and join us for a three-part miniseries in November. Each session starts at noon and ends at 1 p.m., including time for questions and answers with our speakers. Put these dates on your calendar:
Nov. 5, “How did we get to a -$8 PPD,” Mark Stephenson, director of dairy policy analysis, University of Wisconsin;
Nov. 17, “Dairy Fundamental Outlook and Trade,” William Loux, director of global trade analysis, Dairy Export Council, Mike McCully, McCully Group;
Nov. 24, “Dairy Risk Management Tools,” Kenny Burdine, livestock marketing and management, University of Kentucky, Jason Hartschuh, Ohio State University, Chris Zoller, Ohio State University.
These sessions will be broadcast live via Zoom. No worries if you have not used Zoom before — if I can handle it, so can you! You will need a decent internet connection and can connect with either a computer or use a smart phone. There is no cost for the program, but register ahead at go.osu.edu/DairyRiskManagement.
You will receive an email with information about joining the program via Zoom. Participate in any or all of the sessions as your schedule allows. Play it safe and log on a few minutes before noon. I look forward to “seeing” you there.
Component update
By the time this column appears in print, the September PPD will have been announced, but as I write this, we do know that the September Class III price is $16.43 based on fat worth $1.59 per pound and protein valued at $3.39 per pound.
Even with the value of protein dropping more than a dollar per pound from August, and $2.23 off of the July high, it is still the component to focus on to bring more value to your milk check.
CFAP 2
Sign up is open through Dec. 11 at your county’s Farm Service Agency office for the CFAP 2 program. Intended to assist with financial issues caused by market disruption due to COVID 19, it follows, but is independent of, the CFAP 1 program.
Dairy farms can receive $1.20 per hundredweight for milk produced from April 1 through Aug. 31, and $1.20 per hundredweight for estimated milk production from Sept. 1 through Dec. 31. Estimated production is based on daily average milk produced (and sold) between April 1 and Aug. 31.
Find an example calculation in the September Buckeye Dairy News at dairy.osu.edu. Your FSA office will assist with your application. Also, find more detailed information at fsa.gov/cfap.
