DMC is the cornerstone program of the dairy safety net that helps dairy producers manage the volatility of milk and feed prices, and is operated by the U.S. Department of Agriculture’s Farm Service Agency (FSA). DMC was authorized in the 2018 Farm Bill, replacing the former Margin Protection Program for Dairy (MPP-Dairy). This new program offers 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.
“I encourage all dairy farmers in the Commonwealth to take a strong look at this new program,” Thompson said. “We cannot over communicate about the programs available to assist dairy production during challenging times. The Dairy Margin Coverage program is designed to ease the burden and keep family farms solvent.”
The program provides coverage retroactive to Jan. 1, 2019, with applicable payments following soon after enrollment. At the time of signup, dairy producers can choose between the $4.00 to $9.50 coverage levels.
The Farm Bill also allows producers who participated in MPP-Dairy from 2014-2017 to receive a repayment or credit for part of the premiums paid into the program. FSA has been providing premium reimbursements to producers since last month and those that elect the 75 percent credit option will now have that credit applied toward 2019 DMC premiums.
