Enrollment deadline approaching for dairy safety net program


The USDA reminds dairy producers that the deadline to enroll in the Dairy Margin Coverage program for the calendar year 2021 is quickly approaching on December 11. The USDA’s Farm Service Agency opened DMC signup back in October to help producers manage economic risk brought on by milk price and feed cost disparities.

“2020 has been a very challenging year for agricultural producers, and we don’t yet know what next year will bring,” says FSA Administrator Richard Fordyce. “Dairy producers should definitely consider coverage for 2021 as even the slightest drop in the margin can trigger payments.”

The DMC program, first created by the 2018 Farm Bill, offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a specific dollar amount selected by the producer. To enroll, producers must certify with FSA that the operation is commercially marketing milk, sign all the required forms, and pay the $100 administration fee unless the farm qualifies for a waiver.

Producers can select the $4.00 catastrophic level of coverage with no premium fee. They can also choose to buy-up coverage where the premium is based on margin triggers between $4.50 and $9.50 on five to 95 percent of their established production history.