USDA opens enrollment for 2020 Dairy Margin Coverage program

By Jim Cornall contact

- Last updated on GMT

Dairy farmers have earned more than $300m from the program in 2019 so far. Pic: Getty Images/steverts
Dairy farmers have earned more than $300m from the program in 2019 so far. Pic: Getty Images/steverts

Related tags: Usda, Milk

US dairy producers can now enroll in the Dairy Margin Coverage (DMC) for 2020.

USDA’s Farm Service Agency (FSA) opened signup for the program that helps producers manage economic risk brought on by milk price and feed cost disparities.

“We know it’s tough out there for American farmers, including our dairy producers,” Bill​ Northey, Under Secretary for Farm Production and Conservation, said.

“As Secretary Perdue said, farmers are pretty good at managing through tough times, and we know that more dairy farmers will be able to survive with this 2018 Farm Bill and its risk mitigation measures, like the Dairy Margin Coverage program.”

The DMC program 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 certain dollar amount selected by the producer. The deadline to enroll in DMC for 2020 is December 13, 2019.

Dairy farmers earned more than $300m from the program in 2019 so far.

All producers who want 2020 coverage, including those who took advantage of the 25% premium discount by locking in the coverage level for five years of margin protection coverage, are required to visit the office during the signup period to pay the annual administrative fee.

“Dairy producers should definitely consider coverage for 2020 as even the slightest drop in the margin can trigger payments,”​ said Northey.

“Dairy producers should consider enrolling in DMC to guard against what has been, for several years, an extremely unforgiving market.”

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