DMC Generates $1.69/cwt Payment in January
March 3, 2026
The Dairy Margin Coverage Program margin for January was $7.81/cwt, generating a payment of $1.69/cwt for coverage at the maximum $9.50/cwt level.
The low margin was driven by a $1.50/cwt drop in the all-milk price from December and a rise of $0.11/cwt in the January DMC feed cost formula, primarily due to a higher cost of premium alfalfa hay.
At the beginning of March, the DMC Decision Tool on the USDA website projected a similarly low margin in February, followed by a margin rebound to well above $10.00/cwt for the remainder of 2026, with an average of $10.57/cwt for the year.
