Enroll In DMC Next Week

On Wednesday, dairy producers can enroll for 2024 Dairy Margin Coverage, an important safety net program offered through the U.S. Department of Agriculture.

It provides producers with price support to help offset milk and feed price differences. This year’s DMC signup begins Feb. 28 and ends April 29. Payments may begin as soon as March 4 for any payments triggered in January.

USDA’s Farm Service Agency has revised the regulations for DMC. FSA allows eligible dairy operations to make a one-time adjustment to established production history. This adjustment happens by combining previously established supplemental production history with DMC production history for dairies that participated in Supplemental DMC during a prior year. Congress authorized DMC through 2024 when it passed a 2018 Farm Bill extension.

Learn more: https://www.fsa.usda.gov/programs-and-services/dairy-margin-coverage-program/index

“We encourage producers to enroll in this important safety net program,” says FSA Administrator Zach Ducheneaux. “If 2023 taught us anything, it’s that we honestly have no idea what will happen in the market in any given year. Producers who took advantage of this affordable risk management tool for the 2023 program year were able to mitigate some financial impacts on their operations.”

Ducheneaux adds that at $0.15 per hundredweight for $9.50 coverage, risk protection through DMC is a relatively inexpensive investment for peace of mind.

In 2023, DMC payments triggered in 11 months including June and July. This is where the margin fell below the catastrophic level of $4.00 per hundredweight. This was a first for DMC or its predecessor Margin Protection Program.

FarmFirst Dairy Cooperative voiced its support for the program.

“We are pleased that the sign-up period will be opening soon,” says FarmFirst General Manager Jeff Lyon. “FarmFirst will continue to advocate for necessary enhancements to the DMC program in order to ensure that this program continues to be an efficient safety net for dairy producers.”