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Government shutdown halts USDA milk data, delaying dairy risk calculations

A dairy market analyst says the lack of the USDA’s October Milk Production Report has the potential to slow down insurance payments for farmers.

Sarina Sharp with the Daily Dairy Report tells Brownfield dairy risk management programs rely on the data for third-quarter calculations.

“For the DRP insurance program, there’s a yield adjustment factor just like there is in other crop insurance programs,” she explains. “Those are state-level yields that we get from USDA’s Milk Production Report. Without this report, it’s going to take us longer to calculate that yield adjustment factor.”

The Dairy Revenue Program allows farmers to lock in a guaranteed level of revenue based on the amount of milk they expect to market and futures prices. Dairy Margin Coverage payments are triggered when monthly milk-feed margins fall below the farmer’s elected coverage level.

She says using insurance programs to lock in deferred milk prices in the second half of 2026 could help farmers through the current weak price environment.

“Especially in light of cheap feed,” she encourages. And, I think dairy producers should absolutely rush to buy DRP and put a floor under those milk revenues because there’s a real risk that they could move sharply in either direction.”

Sharp says producers should also consider the Livestock Revenue Protection Program to protect a floor price for the beef value of animals on a dairy farm

USDA’s monthly Dairy Products Report, supply and demand reports and trade data has been missed during the government shutdown.

Brownfield interviewed Sharp during the recent Michigan Ag Credit Conference in East Lansing.