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2021 Dairy Margin Coverage Program Enrollment to Begin in October

June 18, 2020

Anna-Lisa Laca

Enrollment for 2021 safety-net protection under the Dairy margin Coverage (DMC) program will begin October 12, USDA announced on Thursday. More than 13,000 operations enrolled in the program for the 2020 calendar year and thousands more wished they would have.

“If we’ve learned anything in the past six months, it’s to expect the unexpected,” said FSA Administrator Richard Fordyce. “Nobody would have imagined the significant impact that current, unforeseen circumstances have had on an already fragile dairy market.  It’s during unprecedented times like these that the importance of offering agricultural producers support through the delivery of Farm Bill safety-net programs such as DMC becomes indisputably apparent.”

The program has triggered two payments so far in 2020. The April 2020 income over feed cost margin was $6.03 per hundredweight (cwt.), triggering the second payment of 2020 for dairy producers who purchased the appropriate level of coverage.

As of June 15, FSA has issued more than $100 million in much-needed program benefits to dairy producers who purchased DMC coverage for 2020, the agency noted in a press release. 

Authorized by the 2018 Farm Bill, DMC is a voluntary risk management program that offers 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. Enrollment will close December 11. Contact your local FSA office to enroll.



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