Cover photo for Dairy Margin Coverage Program

Dairy Margin Coverage Program (DMC)

Farm Service Agency

Opens October 13, 2021

About

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.

Commodities

Eligibility

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.

Resources

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Details

Tags

Release Date

October 13, 2021

Deadline

December 11, 2021

Organization

Farm Service Agency (FSA)

Financial Instrument

Insurance

Image Credit

U.S. Department of Agriculture

Updated July 16, 2021

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