The U.S. Department of Agriculture (USDA) is encouraging dairy producers to enroll in Dairy Margin Coverage (DMC), an important safety net program that helps offset milk and feed price differences. This year’s DMC signup began Jan. 29 and the deadline to enroll is March 31, 2025.
“We encourage producers to join the 272 dairy operations in California that have already signed up for this important safety net program in advance of the deadline,” said USDA Farm Service Agency (FSA) Deputy State Executive Director Navdeep Dhillon in California. “At $0.15 per hundredweight for $9.50 coverage, risk protection through Dairy Margin Coverage is a cost-effective tool to manage risk and provide security for your operations.”
The American Relief Act, 2025 extended provisions of the Agricultural Improvement Act of 2018 (2018 Farm Bill) authorizing DMC for coverage year 2025.
DMC provides dairy operations with risk management coverage that pays producers when the difference (the margin) between the national price of milk and the average cost of feed falls below a certain level selected by the program participants.
DMC offers different levels of coverage minus a $100 administrative fee. The administrative fee is waived for dairy producers who are considered limited resource, beginning, socially disadvantaged or a military veteran.
DMC payments are calculated using updated feed and premium hay costs, making the program more reflective of actual dairy producer expenses. These updated feed calculations use 100% premium alfalfa hay.
Source : usda.gov