DMC Margin Drifts Toward Payments
January 6, 2026
The November margin under the Dairy Margin Coverage Program fell to $10.04/cwt in November, another month of decline, as margins neared the $9.50 trigger level for payments at the maximum level of coverage.
The November decline was driven by a $0.18/cwt rise in the DMC feed cost formula and a $0.30/cwt drop in the all-milk price over the month. At the end of the year, the DMC Decision Tool on the USDA website predicted the December margin would be $9.19/cwt, which would generate a $0.31/cwt payment for $9.50/cwt coverage should that occur. That would be the only DMC payment for 2025.
DMC margins declined in September and October, according to USDA data released after the recent government shutdown, were $10.87/cwt and $10.52/cwt, respectively.
