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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

hoards.com

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