MARGIN PROTECTION PROGRAM (MPP) CALCULATIONS

Month

Pay

Period

Corn($/bu)

Alfalfa Hay

($/ton)

Soybean MealCentral Ill AMS

(GX_GR 117)

($/ton)

All Milk

$/cwt

Feed Cost for

MPP‐Dairy

($/cwt)

Milk MarginAbove Feed Cost

($/cwt)

MilkMargin/payPeriod*

July 3.47 179.00 341.08 15.40 8.68185400 6.71814600 6.71815June 3.58 181.00 355.71 16.30 8.93479250 7.36520750 7.36521May 3.67 189.00 393.55 16.20 9.41906850 6.78093150 6.78093April 3.58 183.00 385.84 15.80 9.18364800 6.61635200 6.61635March 3.51 166.00 379.85 15.60 8.83162550 6.76837450 6.76837February 3.38 155.00 362.85 15.30 8.41651150 6.88348850 6.88349

January 3.29 152.00 322.59 16.10 7.98294850 8.11705150 8.11705

December 3.23 148.00 319.22 17.20 7.83901100 9.36098900

November 3.15 148.00 313.52 18.10 7.71129200 10.38870800

October 3.26 152.00 315.23 17.90 7.89666850 10.00333150

September 3.27 149.00 307.70 17.80 7.81095100 9.98904900

August 3.27 147.00 301.05 18.00 7.73467350 10.26532650

July 3.49 152.00 326.04 17.30 8.22286600 9.07713400

June 3.43 152.00 300.72 17.30 7.97239600 9.32760400

May 3.45 155.00 307.63 16.70 8.08574050 8.61425950

April 3.43 148.00 305.67 16.50 7.95397850 8.54602150

March 3.49 135.00 320.34 17.30 7.94807100 9.35192900

February 3.44 129.00 334.42 18.50 7.91571900 10.58428100

January 3.40 128.00 332.34 18.90 7.84381900 11.05618100 Payment periods 2013 ‐ 2017

 01 – January/February

December 3.33 129.00 321.02 18.80 7.69922100 11.10077900  02 – March/AprilNovember 3.23 130.00 322.41 17.60 7.61585750 9.98414250  03 – May/JuneOctober 3.29 135.00 323.27 16.60 7.75504650 8.84495350  04 – July/AugustSeptember 3.22 137.00 337.95 17.30 7.81524850 9.48475150  05 – Sep/OctAugust 3.21 138.00 340.80 17.10 7.83916800 9.26083200  06 – Nov/DecJuly 3.60 140.00 371.49 16.10 8.51053150 7.58946850

June 3.82 142.00 408.57 14.80 9.04648550 5.75351450

May 3.68 147.00 376.35 14.50 8.72797650 5.77202350

April 3.58 153.00 303.81 15.00 8.16972750 6.83027250

March 3.57 144.00 276.22 15.30 7.83291300 7.46708700

February 3.57 142.00 273.61 15.70 7.78632950 7.91367050

January 3.66 147.00 279.56 16.10 7.99511400 8.10488600

December 3.65 150.00 289.78 17.20 8.10060300 9.09939700

November 3.60 150.00 308.60 18.20 8.18529000 10.01471000

October 3.67 156.00 327.97 17.70 8.48495550 9.21504450

September 3.68 157.00 333.62 17.50 8.55091100 8.94908900

August 3.68 159.00 357.85 16.70 8.75640150 7.94359850July 3.80 169.00 375.71 16.60 9.15340850 7.44659150

June 3.58 178.00 335.03 16.90 8.74169450 8.15830550

May 3.62 192.00 320.23 16.70 8.86762650 7.83237350

April 3.75 184.00 336.61 16.50 9.01788350 7.48211650

March 3.81 172.00 357.83 16.60 9.07381850 7.52618150

February 3.79 172.00 370.38 16.80 9.14460500 7.65539500

January 3.81 174.00 380.02 17.60 9.26431500 8.33568500

December 3.78 183.00 431.73 20.40 9.73549950 10.66450050

November 3.58 184.00 441.39 23.00 9.60564050 13.39435950

October 3.56 194.00 381.50 24.90 9.28099300 15.61900700

September 3.48 197.00 525.72 25.70 10.29628600 15.40371400

August 3.63 209.00 490.32 24.10 10.36141600 13.73858400July 4.05 216.00 450.79 23.30 10.61734650 12.68265350

June 4.49 222.00 501.72 23.20 11.54591400 11.65408600

May 4.71 224.00 519.38 24.20 11.93913100 12.26086900

April 4.71 206.00 514.01 25.30 11.65306150 13.64693850

March 4.51 191.00 495.71 25.20 11.09849650 14.10150350

February 4.35 188.00 509.25 24.90 10.98526750 13.91473250

January 4.42 185.00 479.54 23.50 10.80089500 12.69910500

December 4.41 187.00 498.31 22.00 10.95552650 11.04447350

November 4.35 188.00 451.13 21.60 10.55808550 11.04191450October 4.61 193.00 443.63 20.90 10.85038850 10.04961150

September 5.40 194.00 500.39 20.10 12.12878650 7.97121350

Milk Margin minus Feed Cost Calculation DetailThe feed cost for each month is calculated by summing three calculated numbers: 

An example calculation for January-February 2014:

 January corn price is 4.42 X 1.0728 = 4.7418

 January soybean meal price is 479.54 X 0.00735 = 3.524619 January alfalfa hay price is 185 X 0.0137 = 2.5345

The January feed cost is the sum of these three products above:, which is $10.80 /cwt.Performing similar calculations for February yields a $13.91 per cwt. margin.

7.99534

4

13.87422

2018

5

2017

1 8.00928

2 7.148683 5.762775 9.164856 10.54246

* The January-February Milk Margin is the average of the January and February margins ($12.70 plus $13.91, divided by two) and equals $13.30 per cwt.

2013

11.95748

5

The paired months are specified in the 2014 Farm Bill and are January-February, March-April, MayJune, and so onThe January Milk Margin is the All-Milk price, $23.50 per cwt., minus the feed cost of $10.80 per cwt. = 

$12.70 per cwt.

5

The Milk Margin for each month is then calculated by subtracting the resulting composite feed cost from the all-milk price. 

1) the corn price per bushel times 1.0728; plus 2) the soybean meal price per ton times 0.00735, plus 3) the alfalfa hay price per ton times 0.0137. 

The paired month milk margin is calculated by taking the simple average of the milk margins that were calculated for the individual months in the pairing. 

4 13.210623

6

9.01041

15.51136

2016

4 8.42515

9.99619

42 7.50415

2014

121

11.04319

6 12.02943

7.99554

13.30692

36 9.874851 10.82023

2015

9.67123

3 8.970932 8.948986 9.557055 9.08207

7.69510

Margin values are final when

full month data is firstavailable and will not be

revised with future datarevisions.

Feed costs and monthly

milk margins are notrounded before calculatingthe pay period margin.

*At a milk margin (all‐milk price minus feed cost) of less than $8.00 per cwt, payments are possible depending on the level of coverage chosen by the dairy operation.