Home Dairy Margin Coverage enrollment for 2021 opens Oct. 13
Local News

Dairy Margin Coverage enrollment for 2021 opens Oct. 13

Contributors

usdaUSDA will begin accepting applications for the Dairy Margin Coverage program on Tuesday for 2021 enrollment.

“This year has been a market roller coaster for the dairy industry, and the Dairy Margin Coverage program is a valuable tool dairy producers can use to manage risk,” said Bill Northey, USDA’s Under Secretary for Farm Production and Conservation, during a roundtable at a dairy in Chippewa Falls, Wisconsin. “We were excited to roll out this new and improved program through the 2018 Farm Bill, and if you haven’t enrolled in previous years, we highly encourage you to check it out.”

Signup runs through Dec. 11, 2020. DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. DMC payments triggered for seven months in 2019 and three months so far in 2020.  More than 23,000 operations enrolled in DMC in 2019, and more than 13,000 in 2020.

Updated Dairy Decision Tool

To determine the appropriate level of coverage for a specific dairy operation, producers can utilize the recently updated online dairy decision tool. The decision tool is designed to assist producers with calculating total premium costs and administrative fees associated with participation in DMC. An informational video is available, too.

Improvements to the decision tool, made in cooperation with representatives from the University of Minnesota and University of Wisconsin, include historical analysis that illustrates what DMC indemnity payments might have been had the program been available over the previous two decades.  The analysis indicates that over the course of time, DMC payments made to producers exceed premiums paid. These decision tool enhancements provide a more comprehensive decision support experience for producers considering DMC.

Additional Support for Dairy Producers 

In addition to DMC, USDA offers a variety of programs that have helped dairy producers, including insurance, disaster assistance, and conservation programs. Most recently, the Coronavirus Food Assistance Program 1 provided $1.75 billion in direct relief to dairy producers who faced price declines and additional marketing costs due to COVID-19 in early 2020. Now, signup is underway for the Coronavirus Food Assistance Program 2, which provides another round of assistance for dairy producers and many other eligible producers.

More Information 

For more information, visit farmers.gov DMC webpage, or contact your local USDA Service Center. To locate your local FSA office, visit farmers.gov/service-center-locator.

 

Contributors

Contributors

Have a guest column, letter to the editor, story idea or a news tip? Email editor Chris Graham at [email protected]. Subscribe to AFP podcasts on Apple PodcastsSpotifyPandora and YouTube.

Latest News

How to Bet On the Daytona 500 in California
Sports

How to Bet On the Daytona 500 in California

ron sanchez uva basketball vt
Basketball, Sports

The tweak UVA Basketball coach Ron Sanchez would need if he were to get the job full time

One lesson Ron Sanchez could take with him into next year, if he, indeed, ends up getting the UVA Basketball job on a full-time basis after the season, would be, succession planning.

george mason
Basketball, Sports

George Mason rallies, beats Saint Joseph’s, to stay atop A-10 standings

George Mason took the lead for good on a Brayden O’Connor bucket with 1:18 to go, then got a couple of stops on defense to complete the 58-57 win over Saint Joseph’s, to maintain the lead in the A-10.

isaac mckneely uva basketball
Basketball, Sports

Five Observations: UVA Basketball gets more good offense in road win

Daytona 500 Odds, Picks, & How To Bet
NASCAR

Daytona 500 Odds, Picks, & How To Bet

uva basketball
Basketball, Sports

Live Coverage: UVA Basketball grits out 73-70 win at Virginia Tech

How To Bet On The Daytona 500 in Florida
Sports News

How To Bet On The Daytona 500 in Florida