DMC Margin Drops $1.13/cwt in April, Mostly on Lower Milk Price

The monthly DMC margin fell $1.13 cwt in April to $10.42/cwt of milk on a lower all-milk price.

The DMC feed cost calculation rose $0.13/cwt of milk from March to April, mostly on a higher premium alfalfa hay price, as smaller corn and soybean meal price changes were nearly offsetting on a milk equivalent basis. The all-milk price was down $1/cwt to $21/cwt.

The DMC Decision Tool on the USDA Farm Service Agency website projects the April margin as the lowest for 2025. It shows monthly margins rising steadily from there to top out at $13.92/cwt in November.

House-Passed Budget Reconciliation Package Advances NMPF Priorities

House Republicans took key steps in May that advanced dairy policy priorities including several key farm bill items, approving President Donald Trump’s budget plan using the reconciliation process.

The full House voted to pass the large fiscal package on May 22 by a vote of 215-214. Reconciliation allows Congress to enact tax and mandatory spending legislation via a simple majority in both the House and Senate, bypassing the filibuster process in the Senate that makes it more difficult for partisan legislation to pass.

The House Agriculture Committee’s portion of the bill, passed by the committee on May 14, included multiple NMPF-backed priorities that would boost the agricultural economy and provide farmers certainty.

Relevant provisions included:

  • Extending the Dairy Margin Coverage (DMC) program through 2031; updating DMC’s production history for participating dairies to be based on the highest production year of 2021, 2022, or 2023; and extending the ability for producers to receive a 25% premium discount for locking in five years of coverage;
  • Providing mandatory funding for USDA to conduct mandatory plant cost studies every two years to provide better data to inform future make allowance conversations;
  • Folding the remaining Inflation Reduction Act conservation dollars into the farm bill baseline, resulting in increased long-term funding for popular, oversubscribed programs like the Environmental Quality Incentives Program;
  • Doubling funding for critical dairy trade promotion programs that return well over $20 in export revenue for every one dollar invested in the programs; and
  • Increasing funding for animal health programs that help to prevent, control, and eradicate animal diseases, such as the outbreak of H5N1 in dairy cattle.

The House Ways and Means Committee also adopted the tax portion of the bill on May 14. The tax package includes critical NMPF-backed language to make the Section 199A tax deduction permanent, which will allow dairy cooperatives to continue either passing the deduction back to their farmer owners or reinvesting it in their cooperatives.

“Whether it’s risk management or tax issues, the stakes are enormous for Congress to get the policy right in this legislation,” said NMPF President & CEO Gregg Doud. “House committees have done good work this week to start major elements of this bill on the right track for dairy farmers and the cooperatives they own.”

The budget reconciliation process now moves forward to the U.S. Senate, where NMPF will push to preserve the agricultural resources and tax policy gains included in the House bill. The Senate is likely to continue the process on the bill when Congress reconvenes in June.

DMC Margin Loses $1.57/cwt in March, Mostly on Lower Milk Price

The monthly Dairy Margin Program margin fell $1.57/cwt to $11.55/cwt in March as the U.S. average all-milk price fell $1.60/cwt to $22/cwt, more than outstripping a small decline in feed costs.

The DMC Decision Tool on the USDA Farm Service Agency website has long projected the monthly margin would reach a bottom for 2025 this spring, but the March downward move outpaced its projections. On the last day of April, the Tool showed the correct milk, corn and soybean meal prices for March, but anticipated a much lower premium alfalfa hay price and showed a projected March margin of $12.29/cwt.  At that time, it also projected the margin would reach a 2025 low of $11.05/cwt in June before rising again.

DMC Margin Loses $0.73/cwt in March, on Lower Milk Price and Higher Feed Cost

The Dairy Margin Coverage margin fell $0.73/cwt to $13.12/cwt for March as milk prices fell and feed costs rose.

The U.S. average all-milk price lost $0.50/cwt in February, falling to $23.60/cwt, while higher feed costs covered the rest of the margin loss. The DMC Decision Tool on the USDA Farm Service Agency website at the end of March projected the monthly margin would average $12.51/cwt during 2025, with a low of $11.10/cwt in May. Such a performance would result in no DMC payouts for farmers this year.

NMPF’s Galen Explains Importance of DMC Signup in 2025

NMPF’s senior vice president Chris Galen discusses why farmers not already enrolled in the Dairy Margin Coverage program should consider using the risk management tool this year. DMC is one of several options, including Livestock Gross Margin and Dairy Revenue Protection programs, that can be used in tandem.  The deadline for producers to sign up for the USDA program is Monday, March 31.

Time Running Out for Dairy Farmers to Sign Up for Dairy Margin Coverage


In a recent interview, NMPF Senior Director of Communications and Outreach Theresa Sweeney-Murphy highlighted the importance of the USDA’s Dairy Margin Coverage (DMC) program as a crucial risk management tool for dairy farmers. With enrollment open through March 31, DMC helps protect farmers from unpredictable milk and feed prices by providing payments when margins fall below selected coverage levels.

Sweeney-Murphy discussed recent updates to the program, including improved feed-cost calculations that now fully account for premium alfalfa hay, ensuring payments more accurately reflect real-world expenses. She also emphasized the program’s flexible coverage options and how it can be paired with Dairy Revenue Protection (DRP) and Livestock Gross Margin—Dairy (LGM-Dairy) for added financial security.

Farmers can enroll by visiting their local USDA Farm Service Agency office, where staff can help them navigate their coverage options before the March 31 deadline.

Milk Price Gain Raises January DMC Margin

Following three months of falling from record highs, the Dairy Margin Coverage (DMC) program margin rose in January as milk prices increased more than feed costs.

The January U.S. average all-milk price rose by $0.80/cwt from the month before to $24.10/cwt, while the DMC January feed cost formula increased by $0.33/cwt of milk on higher prices for all three of its feed components. That moved the DMC margin up by $0.47/cwt of milk for the month.

The DMC Decision Tool on the USDA Farm Service Agency website at the end of February projected the monthly margin would average $12.37/cwt during 2025, with a low of $11.41/cwt in late spring. 2025 DMC program enrollment is now open and is scheduled to close March 31.

NMPF Board Member Advocates for Dairy Priorities at Senate Hearing

Sixth-generation Vermont dairy farmer and NMPF Board Member Harold Howrigan urged the Senate Agriculture, Nutrition, and Forestry Committee to swiftly advance a five-year farm bill that renews the Dairy Margin Coverage program while also addressing other major dairy issues.

Howrigan, a board member of Dairy Farmers of America, a Kansas City, KS-based NMPF member cooperative, testified on NMPF’s behalf at a hearing held last Wednesday.

Howrigan focused on the dairy industry’s ongoing work with USDA and the Food and Drug Administration to safeguard dairy herds and farm employees from Highly Pathogenic Avian Influenza A H5N1. NMPF is pressing for swift advancement of effective H5N1 vaccines for dairy cattle, combined with a risk-based vaccine deployment strategy which mitigates trading partner concerns.

“We appreciate USDA’s work to accelerate vaccine development and urge that a vaccine be made available as soon as possible,” Howrigan said.

Howrigan also touted the revamped dairy safety net authorized in the 2018 Farm Bill and strengthened by subsequent legislative and administrative actions.

“The Dairy Margin Coverage program has served farmers well during difficult times. Since it was implemented six years ago, my farm has consistently purchased the maximum $9.50 coverage,” he said.

Howrigan called labor and trade issues essential priorities for dairy farmers and the cooperatives they own, urging Congress to pass long-overdue immigration legislation that meets dairy’s unique labor needs and to work with the administration to seek new market access worldwide.

“Failing to act risks damaging the vitality of our entire sector,” he said.

Finally, Howrigan urged the committee to pass the bipartisan Whole Milk for Healthy Kids Act, spearheaded by Sen. Roger Marshall, R-KS, and Sen. Peter Welch, D-VT. As he reminded members at the hearing, “Dairy is a nutrition powerhouse but continues to be under consumed by most Americans.”

Diving in on Dairy’s Legislative Agenda

By Paul Bleiberg, Executive Vice President, Government Relations, National Milk Producers Federation
President Donald Trump and Vice President J.D. Vance have now taken their oaths of office, and the 119th Congress has been seated. While the opening weeks of a new Congress and presidency focus on nominations and organization, these important housekeeping processes will soon give way to a busy legislative session.

We know dairy is ready for an action-packed 2025. National Milk Producers Federation’s (NMPF) major legislative goals begins with passage of a five-year farm bill, but what makes up that bill for dairy is just as important.

First, enabling schools to offer whole and reduced-fat milk is paramount. Milk provides 13 essential nutrients and is the top source of calcium, potassium, phosphorus, and vitamin D for children ages 2 to 18. However, just last month, the Dietary Guidelines Advisory Committee’s Scientific Report reaffirmed that 88% of all Americans are under consuming dairy. The bipartisan Whole Milk for Healthy Kids Act, recently reintroduced in Congress, provides the solution. This bill would allow, but not require, schools to serve all varieties of milk, including whole and reduced-fat milk. A growing body of evidence demonstrates that dairy foods at all fat levels have a neutral or positive effect on health outcomes. NMPF strongly supports swift passage of this measure to solve a critical child nutrition problem.

This problem is made clearer by data. Accurate, transparent data drives strong public policymaking. And that brings up another NMPF policy priority: remedying the persistent lack of accurate data when it comes to the costs of manufacturing raw milk into processed dairy products, which denies stakeholders an essential tool for assessing how milk pricing formulas ought to be structured.

A fix lies in the Fair Milk Pricing for Farmers Act, a bipartisan bill to require USDA to conduct mandatory dairy manufacturing cost surveys every two years. This will equip all voices in the dairy industry with better data to help drive future dairy pricing conversations.

Ongoing discussions on dairy pricing are vital for an industry that continues to innovate and advance. But milk pricing isn’t the only area where innovation is necessary. On the farm, U.S. dairy farmers benefit from safe and effective feed ingredients that can boost productivity in their herds and support environmental stewardship. However, the Food and Drug Administration’s (FDA) current outdated review process for these ingredients hinders their timely approval and puts U.S. dairy farmers at a disadvantage with their global competitors. NMPF supports the bipartisan Innovative FEED Act, first introduced in 2023, to create a safe but expeditious process for FDA to review these products to help farmers make important gains and stay competitive.

These are just a handful of the major legislative efforts NMPF seeks to advance. Each of these bipartisan bills made headway last year as the House and Senate began their respective farm bill processes. With the new Congress getting ready to produce results, dairy stands ready to get these important priorities signed into law.

r of choice.


This column originally appeared in Hoard’s Dairyman Intel on Feb. 6, 2025.

NMPF’s Bleiberg Reviews Capitol Hill Agenda in New Year

NMPF’s executive vice president Paul Bleiberg discusses the current agenda for Congress as the leadership transitions in Washington from President Biden to President-elect Trump.  Bleiberg also highlights that the USDA plans to soon open the 2025 sign-up for the Dairy Margin Coverage program, for those farmers not already enrolled in the federal safety net.

DMC Margin Drops Again – to Third Highest Ever

The monthly margin under the Dairy Margin Coverage (DMC) program lost $0.88/cwt from a month before, yet, at $14.29/cwt, still came in as the third highest since margin protection became the basic safety net program for dairy in 2015.

The November U.S. average all-milk price dropped by $1/cwt from October to $24.20/cwt, while the DMC feed cost formula declined by $0.12/cwt. A lower soybean meal price more than offset a higher corn price; the premium alfalfa hay price was little changed.

The end of December dairy and grain futures indicated that the DMC margin would average around $12.50/cwt for all of calendar year 2025, which would be $0.60/cwt higher than the 2024 annual average and well above the trigger under which payments begin.

Year-End Legislation Preserves Dairy Safety Net, Ensures Disaster Relief

Following advocacy from NMPF and other farm stakeholders, Congress passed legislation Dec. 20 extending the 2018 farm bill through 2025 and providing relief to farmers who suffered losses from natural disasters in 2023 or 2024.

The extension continues the Dairy Margin Coverage safety net for the entirety of 2025. Consistent with the extension enacted in 2023, the 2019 partial production history update is part of the underlying DMC program and will remain so over the long term. In addition, those producers that initially signed up in 2019 using the five-year “lock in” option will continue to receive a 25 percent premium discount in 2025. Further, the onset of permanent law, which would trigger outdated government support known as the “dairy cliff,” is also averted through the end of next year.

The disaster assistance portion of the package provides the U.S. Department of Agriculture with $30.78 billion to offer relief to producers who endured losses, including for milk, in 2023 and 2024 on account of a wide variety of natural disasters, including droughts, wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, and freezes. Within this larger total, the bill sets aside $2 billion for assistance to livestock producers for losses related to drought, wildfires, and floods.

NMPF is grateful to Rep. David Valadao, R-CA, for leading efforts to enact the overall package and for securing the inclusion of floods on account of damages California dairy farmers endured last year due to livestock relocation, shelter-in-place, and feed crop losses. The bill also allows USDA to provide some support in the form of block grants to states, a priority for southeastern producers recently impacted by devastating hurricanes.

With this package signed into law, NMPF looks forward to working with the House and Senate Agriculture Committees to complete a new farm bill in 2025 that makes needed policy improvements and provides dairy farmers and their cooperatives long-term certainty for the years ahead.