By Leonard Polzin
Information in this bulletin reflects the USDA announcement of September 30, 2026, and the Dairy Margin Coverage regulations at 7 CFR part 1430 as of October 1, 2026. FSA may issue further guidance during the enrollment period.
At a Glance
- Enrollment opens: Monday, October 5, 2026.
- Enrollment closes: Friday, December 18, 2026.
- Coverage period: January through December 2027.
- Where to enroll: your local FSA county office.
- Administrative fee: $100, due by December 18, 2026, unless the operation qualifies for a fee waiver.
- Premium due: in full no later than September 1, 2027.
- Payment reduction: DMC payments made in fiscal year 2027 are reduced 5.7% by federal sequestration.
- Program changes for 2027: none.
- Decision tool: dmc.bozic.io.
What do I need to do?
I locked in coverage for 2026 through 2031 last year.
- Visit the FSA office between October 5 and December 18, 2026.
- Certify that the operation commercially markets milk, sign a 2027 contract, and pay the $100 administrative fee.
- Coverage level, coverage percentage, and the 25% premium discount carry forward. No new coverage decisions are needed.
- Coverage for 2027 does not take effect until the 2027 contract is signed. An operation that is marketing milk and holds a lock-in contract owes the 2027 premium whether or not it signs the 2027 contract (7 CFR §§ 1430.404(e), 1430.413(b)).
I enrolled for 2026 only, or did not enroll in 2026.
- Visit the FSA office between October 5 and December 18, 2026.
- Choose a 2027 coverage level and coverage percentage, sign a 2027 contract, and pay the $100 administrative fee.
- The multi-year coverage lock-in for 2026 through 2031 and its 25% premium discount are not available. The regulation required that election during the 2026 enrollment period.
I started a new dairy operation after the 2026 enrollment period.
- Submit a DMC contract within 60 days of the date the operation first commercially markets milk, or during the October 5 to December 18 window if the operation is already marketing milk.
- Bring milk marketing records so FSA can establish a production history.
- Choose annual coverage, or lock in coverage from the first available year through 2031 at the 25% premium discount. The regulation extends the lock-in to operations that did not exist during the 2026 enrollment period and so could not elect it then (7 CFR § 1430.407(j)).
What changed for 2027
There are no program changes for 2027 beyond the enrollment dates. USDA announced no changes to coverage levels, premium rates, the Tier 1 and Tier 2 limits, production history rules, the administrative fee, or the margin formula (USDA FSA, 2026a). The rules in place for 2026 carry into 2027. The enrollment window is the main practical difference. The 2026 window ran from January 12 through February 26, 2026 (USDA FSA, 2026b). The 2027 window opens and closes in the fall of 2026, before the coverage year begins.
The current rules date to the 2025 budget reconciliation law, Public Law 119-21, which reauthorized DMC through 2031. USDA now refers to this law as the Working Families Tax Cuts Act. Beginning in 2026, the law raised the Tier 1 limit from 5 million to 6 million pounds, reset production histories, and created the 2026 through 2031 lock-in option (USDA FSA, 2026a, 2026c).
Source : wisc.edu