Dairy Margin Coverage application window for 2021 enrollment opens Oct. 13
Dairy farmers can now apply to the US Department of Agriculture Dairy Margin Coverage program for 2021 enrollment beginning Oct. 13.
DMC is a voluntary risk management program that provides support to dairy farmers when the margin between all-milk prices and average feed costs fall below a certain amount selected by the producer. Payments were triggered for three months in 2020 and seven months in 2019 following roller coaster prices during a financially unstable time for the dairy industry.
Premium costs vary depending on the level of coverage desired. The program provides a decision tool to farmers who need helping deciding how much coverage they should purchase. Thousands of dairy farms across the country have enrolled in the program, with 23,000 enrollments in 2019 and 13,000 in 2020. Applications for 2021 enrollment close Dec. 11, 2020.
"This year has been a market roller coaster for the dairy industry, and the Dairy Margin Coverage program is a valuable tool dairy producers can use to manage risk," said Bill Northey, USDA’s Under Secretary for Farm Production and Conservation, during a roundtable at a dairy in Chippewa Falls. "We were excited to roll out this new and improved program through the 2018 Farm Bill, and if you haven’t enrolled in previous years, we highly encourage you to check it out."