Moyer manages 300 head of dairy cattle in Amelia County alongside his father and brother on their 100-year-old dairy farm, Oakmulgee Dairy Farm Inc. He’s participated in the DMCP since it was introduced.
“Volatility is all we know in the dairy industry,” says Eric Paulson, executive director of the Virginia State Dairymen’s Association. “The DMCP is our safety net.”
The DMCP is a federal insurance program, authorized in the 2018 Farm Bill, which covers the cost margin between the national average feed cost and the price of milk. If the margin falls below the defined amount, enrolled producers are covered up to the level selected.
“The DMCP is probably one of the first true dairy programs that has worked for the industry,” Paulson says.
Additionally, the Virginia General Assembly created the Dairy Producers Margin Coverage Premium Assistance Program (PAP) in 2020 to help offset premium costs producers, like Moyer, pay annually toward the DMCP.
However, due to delays on the federal Farm Bill in 2022, the state program closed well before the federal program. Governor Glenn Youngkin signed the first legislation of his term into effect on Feb. 14, 2022, extending the deadline to participate in the state program until May 15. The bill passed unanimously, providing premium assistance for the 74% of Virginia producers who participated in 2022.
Virginia producers participating in the federal program can be reimbursed for their premium through the state if they have a nutrient management plan, Moyer says. Nutrient management helps ensure the appropriate amount of nutrients are being applied to land, saving farmers money and reducing any excess nutrient runoff into waterways.
“A nutrient management plan was something I was already doing because of my herd size,” Moyer says.
Yet, for a farm with 200 head or less, a nutrient management plan and a risk management plan – such as the DMCP – may not already be in place.
“Those things can help open your eyes to a couple of improvements or things you can do differently, even if you are already doing things right,” Moyer says.
