WASHINGTON — Dairy producers have until Sept. 20 to enroll in the Dairy Margin Coverage (DMC) program for 2019.
Authorized by the 2018 Farm Bill, the 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.
As the 2019 enrollment period draws to a close, FSA estimates over $257.7 million in payments to producers who are currently registered. Also, nearly half of the producers are taking advantage of the 25% premium discount by locking in for five years of margin protection coverage.
Margin payments have triggered for each month from January through July. Dairy producers who elect higher coverage levels could be eligible for payments for all seven months. Under certain levels, the amount paid to dairy farmers will exceed the cost of the premium.
For 2020, dairy producers can sign up for coverage under DMC from Oct. 7 through Dec. 13. At the time of signup, dairy producers can choose between the $4 to $9.50 coverage levels.
ADVERTISEMENT
For more information, visit farmers.gov DMC webpage or contact a USDA service center.
