Ten Thousand Dairies Enrolled in New Dairy Program

(WASHINGTON, DC) USDA’s Farm Service Agency (FSA) opened enrollment for the Dairy Margin Coverage (DMC) program on June 17th and has started issuing payments to producers who purchased coverage. Producers can enroll in the program through September 20th. Authorized by the 2018 Farm Bill, DMC replaces the Margin Protection Program for Dairy (MPP-Dairy). The program offers protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer. To date, nearly 10,000 operations have signed up for the new program, and FSA has begun paying approximately $100 million to producers for January through May. Coverage is retroactive to the first of the year, with applicable payments following soon after enrollment. The May 2019 income over feed cost margin was $9.00 per hundredweight, triggering the fifth payment for eligible dairy producers who purchase the $9.50 level of coverage under DMC. Payments for January, February, March, and April also were triggered. With the 50 percent hay blend, FSA’s revised April 2019 income over feed cost margin is $8.82.