Dairy Safety Net Providing Support During Challenging Times

WASHINGTON, DC – For the first time this calendar year, dairy producers signed up for the Dairy Margin Coverage (DMC) program from USDA will receive a payment. Authorized by the 2018 Farm Bill, this is a voluntary risk management program offering protection when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar level. Current projections indicate that a DMC payment is likely to trigger every month for the remainder of 2020, a different expectation from last July when some market models had forecast no program payments for 18 months. Over 13,000 operations enrolled in the program for the 2020 calendar year and although DMC enrollment for 2020 coverage has closed, dairy producers should look for FSA to open sign up for 2021 coverage in July.