The USDA Farm Service Agency financial safety net pays dairy farmers when the difference between the price for milk and average feed price – the margin – falls below the amount selected by the producer at enrollment.
The USDA Farm Service Agency financial safety net pays dairy farmers when the difference between the price for milk and average feed price – the margin – falls below the amount selected by the producer at enrollment.
“Protecting your bottom line against price fluctuations you can’t control just makes sense.” Redding said. “Dairy Margin Coverage is a smart part of every dairy producer’s risk management strategy.”
Dairy Margin Coverage was created under the 2018 federal Farm Bill. Payments to dairy farmers nationwide in 2021 were expected to be nearly $1.9 billion. In Pennsylvania, 1,711 dairy operations, about a third of Pennsylvania dairy farms, were enrolled in the program. In 2021, these operations received $88,861,920 in payments averaging $51,936 per farm.
To receive coverage in 2023, producers must enroll in the program from October 17 through December 9, 2022. Find Dairy Margin Coverage program informationOpens In A New Window on the USDA Farm Service Agency (FSA) website, fsa.usda.govOpens In A New Window. PA dairy producers should visit their county FSA officeOpens In A New Window by December 9, 2022.
Find funding and other resources to support financial planning for your agricultural operation, as well as more than 2,000 PA Farm Bill grant recipients.
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