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The Supplemental DMC program will make additional payments to farms whose DMC production history is below five million pounds, but whose actual production has increased since 2014. Producers will only receive these supplemental payments if they are enrolled in the underlying DMC program for a given year.  Participating producers will receive the same coverage level that they previously purchased under DMC.  Producers will be required to pay those same premium rates to receive supplemental coverage.

Producers who are enrolled in DMC through 2023 only need to enroll in the Supplemental DMC program, which will be retroactive to Jan. 2021 for producers enrolled in DMC this year.  To do so, you will need to complete a form at your FSA office to modify your existing DMC production history.  If you are still considering whether to sign up for DMC for 2022, it is important to note that you can only participate in the Supplemental DMC program if you are also participating in the underlying DMC program.

Producers with DMC production history exceeding 5 million pounds are not eligible to participate in the Supplemental DMC program.  However, if your production history is below 5 million pounds, you can participate in the Supplemental DMC program if your milk output has increased since your production history was first determined in 2014.  Supplemental DMC payments will be based on the difference between a farm’s actual 2019 production and its DMC production history (a farm’s highest year of production of the years 2011, 2012, or 2013).  Once that difference is calculated, farmers will receive supplemental payments totaling 75 percent of that amount.

Producers whose 2019 actual production exceeded 5 million pounds should be able to receive Supplemental DMC payments on the difference between their 2019 production and their DMC production history, up to 5 million pounds.  Eligible producers cannot receive combined DMC and Supplemental DMC payments on more than 5 million pounds of production.

Producers who are not enrolled in DMC for 2021 are ineligible to receive Supplemental DMC payments for 2021 but can receive Supplemental DMC payments for 2022 if they choose to enroll in DMC for 2022.  No producer can receive Supplemental DMC payments for years preceding 2021.

No, producers will not be able to modify their 2021 DMC coverage selections.  However, producers can select new coverage levels for 2022 if they have chosen to sign up for the program annually and did not choose the five-year enrollment option in 2019.

Because premium-quality alfalfa is more expensive than other varieties, we anticipate that the change in alfalfa pricing will increase DMC payouts in the future and will result in retroactive payouts to those producers who participated in DMC for 2020 or 2021. Eligible farmers do not need to take any action to receive these payments.

To receive Supplemental DMC payments, producers will first need to revise their 2021 DMC contracts to account for eligible production increases by contacting their local USDA Service Center.  Producers will then receive retroactive Supplemental DMC payments for 2021.  Producers will also receive Supplemental DMC payments for 2022 if they enroll in DMC for 2022.