Dairy Margin Coverage Program (DMC)

The 2018 Farm Bill authorized the new Dairy Margin Coverage (DMC) program, which is a voluntary risk management program for dairy producers. DMC replaces the Margin Protection Program for Dairy (MPP-Dairy).

DMC continues to offer protection to dairy producers when the difference between the all milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer.

Decision Tool: The current version of the DMC decision tool has been enhanced and was developed in partnership with in cooperation with representatives from the University of Minnesota and University of Wisconsin to help producers determine the level of coverage under a variety of conditions that will provide them with the strongest financial safety net.

The weekly Dairy Margin Coverage (DMC) Enrollment, Production and Payment report will be updated every Monday at 2:00 PM Eastern.

The program provides:

• Catastrophic coverage, at no cost to the producer, other than an annual $100 administrative fee that is waived in some cases; and

• Various levels of buy-up coverage.

To be eligible for DMC, a dairy operation must:

• Produce and commercially market milk from cows located in the United States; and

• Provide proof of milk production at the time of registration.

Dairy operations may consist of one or more dairy producers who are in the business of commercially producing and marketing milk as a single unit.

Dairy producers who are members of the dairy operation must share in the risk of producing milk and make contributions to the dairy operation that are at least commensurate with their share of the proceeds of the operation.

Dairy operations must be in compliance with highly erodible land and wetland conservation provisions. For more information, visit fsa.usda.gov/compliance. Adjusted gross income provisions do not apply to DMC.

Producers may have more than one dairy operation, but they must be separate and distinct in order to have a separate contract.

DMC is margin insurance, not a grant: you pick a coverage level and FSA pays you when the national margin (all-milk price minus average feed cost) falls below it.

What you choose: "Producers can select coverage levels ranging from $4.00 to $9.50 per hundredweight (cwt) of milk, in $0.50 increments."

What it costs: catastrophic coverage carries no premium; buy-up levels do. "Premium Rates: Vary based on the coverage level and the production history of the dairy operation. Discounts are available for small-scale producers and those opting for higher coverage levels."

How you get paid: "Payments: Calculated monthly when the actual dairy production margin falls below the selected coverage level." Covered volume is set by your production history — "the highest milk production in 2021, 2022, 2023 for existing dairy operations or the first year of monthly milk marketing statements for new dairy operations."

Two 2026 changes worth knowing: "Starting in 2026, DMC's Tier 1 coverage level increased from 5 million pounds to 6 million pounds" (more of your milk priced at the cheaper Tier 1 premium), and "Dairy operations also have the option to lock-in coverage levels for six years (2026 - 2031) with premium fees discounted by 25%." All operations enrolling for 2026 establish a new production history.

The per-cwt premium table and the annual administrative fee are not restated on the FSA program page — get those from your local FSA office or the DMC decision tool before choosing a level.

2026 enrollment closed Feb. 26, 2026.

To enroll in the Dairy Margin Coverage Program, dairy producers must complete and submit an application to their local FSA office during the specified enrollment period. The application process includes providing production records and selecting the desired coverage level. Detailed enrollment instructions and deadlines are available through the local FSA office. 

Contact your local FSA agent to apply.

• Dairy Margin Coverage Fact Sheet

• Dairy Margin Coverage Decision Tool

• Dairy Margin Coverage Program Enrollment Information

• Program Updates and Prices