Producers Can Now Enroll in Dairy Margin Coverage for This Year

 For those who sign up for 2024 DMC coverage, payments may begin as soon as March 4, 2024, for any payments that triggered in January 2024.

Gregg Doud, president and CEO of National Milk Producers Federation (NMPF), said in a statement that dairy farmers are pleased to finally have the certainty of knowing when the DMC program signup is beginning.

“DMC itself is improved from the previous farm bill, thanks to the permanent incorporation of updated production histories in the program, and recent low producer margins underscore just how critical DMC is for dairy farms of all sizes,” Doud said. “We thank Congress for making this important change and are grateful for USDA’s work in rolling out this updated program for farmers.”

USDA’s Farm Service Agency (FSA) has revised the regulations for DMC to allow eligible dairy operations to make a one-time adjustment to established production history. This adjustment will be accomplished by combining previously established supplemental production history with DMC production history for those dairy operations that participated in Supplemental Dairy Margin Coverage during a prior coverage year. DMC has also been authorized through the calendar year 2024. Congress passed a 2018 Farm Bill extension requiring these regulatory changes to the program.

FSA Administrator Zach Ducheneaux encourages producers to enroll in this important safety net program. More than $1.2 billion in Dairy Margin Coverage payments were issued to producers last year.

"Dairy Margin Coverage is proven to be a program to reduce risk for our dairy producers,” Ducheneaux said. “If 2023 taught us anything, it’s that we honestly have no idea what will happen in the market in any given year. Producers who took advantage of this affordable risk management tool for the 2023 program year were able to mitigate some financial impacts on their operations. At $0.15 per hundredweight for $9.50 coverage, risk protection through Dairy Margin Coverage is a relatively inexpensive investment in a true sense of security and peace of mind.” 

DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer.

“NMPF is eager to assist producers in any way they can with this program,” Doud said. “We also look forward to working to ensure that farmers receive what they need even more – a new farm bill that provides certainty for the next several years, and not just 2024.”

For more information on DMC, visit the DMC webpage or contact your local USDA Service Center.