Dairy farmers now have an improved range of risk-management tools to help them deal with the increased volatility of milk prices and feed costs, as well as additional resources expected soon from the USDA in response to the coronavirus crisis.
Central to current dairy support is the new Dairy Margin Coverage (DMC) program, created in the 2018 Farm Bill, which gives farmers higher levels of assistance at more affordable prices. Farmers also have expanded access to the Livestock Gross Management (LGM) program and the Dairy-Revenue Protection (Dairy-RP) program. This page provides an overview of what the U.S. Department of Agriculture is providing, along with resources that help farmers and inform the public about the safety net established in the Farm Bill as well as additional federal support as it becomes available.
The basic dairy support program is the Dairy Margin Coverage program developed as part of the 2018 Farm Bill, which offers
The USDA offers a decision tool to help in DMC planning.
The Dairy Margin Coverage program was developed as part of the 2018 Farm Bill with the assistance of NMPF as a response to the flaws of the previous Margin Protection Program, which didn’t adequately assist farmers through multiple years of low prices beginning in 2015.
DMC, the successor to the MPP, became reality last December, when President Donald Trump signed the 2018 Farm Bill into law. DMC reforms include:
Sign-up for the 2020 DMC began October 7, 2019. All dairy farmers who want 2020 coverage must visit their local USDA Service Center office to pay the annual administrative fee, which is $100 for the lowest level catastrophic coverage. Producers must visit their local office even if they locked in coverage for five years to take advantage of the 25% premium discount. USDA offers a decision tool to help in DMC planning. Enrollment runs through December 13.
NMPF is offering this site as a resource for producers, with additional materials giving farmers aid in making informed decisions that will help them survive tough times — and thrive in future years.
Latest DMC Margin Forecast