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  • ZISK

Could bandwidth exist to expand the DMC program?

The Dairy Margin Coverage Program (DMC) is a risk management option utilized by many dairy farmers. It was first created by the 2018 Farm Bill as an updated — and many would say improved — version of the Margin Protection Program which itself was created in the 2014 Farm Bill. On an annual basis, dairy farmers can sign up for operation-specific coverage based on milk production history. The DMC program insures milk based on a nationally representative income-over-feed-cost margin of up to $9.50 per hundredweight (cwt.) for a relatively small fee.

As a result, DMC has become the foundation of market risk management by U.S. dairy farms — particularly for small and medium-sized herds. Since 2018, a majority of dairy farms and eligible milk production have participated as the program has become foundational to dairy farm risk management.

Secures major income source

Christopher Wolf

July 12, 2023


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