The USDA is encouraging dairy producers to enroll in Dairy Margin Coverage (DMC). This is 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 2070 dairy operations in Wisconsin 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 Tyler Radke in Wisconsin. “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). Doing this authorizes DMC for coverage year 2025.
DMC provides dairy operations with risk management coverage. This 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. This makes the program
more reflective of actual dairy producer expenses. These updated feed calculations use 100%
premium alfalfa hay.
