The U.S. Department of Agriculture (USDA) announced that the new deadline to enroll is January 31, 2023. Originally, the enrollment window was set to close on December 9. USDA announced the extension as a means for allowing producers more of an opportunity to enroll in the coverage program.
“Early projections indicate DMC payments are likely to trigger for the first eight months in 2023,” said Farm Service Agency (FSA) Administrator Zach Ducheneaux. “We all know that markets fluctuate, sometimes at a moment’s notice and sometimes with no warning at all, so now’s the time to ensure your operation is covered. Please don’t let this second chance slide.”
The voluntary risk management program offers a certain level of protection for dairy producers for when differences between the all-milk price and feed prices drop below a specific threshold. USDA notes that DMC is a relatively inexpensive investment, at $0.15 per hundredweight for $9.50 coverage. There are varying levels of coverage through DMC. One option is free to dairy producers after a $100 administrative fee. The online dairy decision tool can assist producers in choosing what type of coverage would be appropriate for specific dairy operations. National Milk Producers Federation (NMPF) President and CEO Jim Mulhern expressed appreciation for the enrollment extension for the dairy margin coverage programs.
“With input costs at record highs and early projections showing possible DMC payments for the first eight months of 2023, it’s imperative that producers have time to consider their coverage needs and make choices that best fit their operations and risk-management plans,” Mulhern said in a statement. “Farmers also should use this extended DMC signup period to consider USDA’s full suite of risk-management options, all supported by NMPF.”
