Tag: dairy margin coverage

Senate Budget Reconciliation Proposal Includes NMPF Priorities

Posted on by Theresa Sweeney

The U.S. Senate on July 1 passed a budget reconciliation bill that largely resembles the House-passed version when it comes to critical dairy issues. The bill passed by a vote of 51-50, with Vice President JD Vance breaking the tie, and House Republican leaders are hoping to send the bill to President Donald Trump by July 4.

The Senate Agriculture Committee’s portion of the bill, released by Chairman John Boozman, R-AR, on June 11, includes numerous NMPF-backed requests that would strengthen dairy and farm policy, including:

  • Renewing the Dairy Margin Coverage (DMC) program through 2031; updating DMC’s production history calculation 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 their coverage for the duration of the bill;
  • Providing mandatory funding for USDA to conduct mandatory dairy processing cost surveys every two years to provide better data to inform future make allowance conversations;
  • Folding 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;
  • Providing new trade promotion funding based on current programs that return well over $20 in export revenue for every 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.

“Dairy farmers are grateful to Chairman John Boozman and his committee for putting forward legislation that will create several key opportunities for dairy,” said Gregg Doud, NMPF president and CEO in a statement. “Following last month’s successful vote in the House, we are excited that this legislation positions these investments strongly in the Senate to benefit dairy farmers and the cooperatives they own. We hope they are enacted into law as swiftly as possible.”

The Senate Finance Committee’s portion of the bill, released on June 16, makes permanent the Section 199A tax deduction, enabling dairy farmer-owned cooperatives to continue either passing the deduction back to their farmer owners or reinvesting it in their cooperatives.

NMPF will continue to work with House and Senate committee leaders and other members to maintain these provisions in the final version of the bill that eventually reaches President Trump’s desk.

Little Change from April in May DMC Margin

Posted on by Theresa Sweeney

The May DMC margin lost $0.02/cwt from a month earlier to $10.40/cwt, according to the DMC Decision Tool on the USDA Farm Service Agency website. The Tool had previously predicted the April margin to be the lowest for the year, but a large increase in the price of premium alfalfa hay, equivalent to $0.34/cwt of milk in the DMC feed cost formula, more than offset a $0.30/cwt increase in the May all-milk price, to $21.30/cwt, while much smaller, offsetting prices of corn and soybean meal could only bring the feed cost down by another $0.02/cwt.

The Decision Tool continues to show the DMC margin increasing steadily, now from May, to top out at $13.76/cwt in November and average $12.43/cwt for the year.

NMPF Applauds Senate Reconciliation Dairy Provisions, Urges Congress Toward Final Action

Posted on by Theresa Sweeney

The National Milk Producers Federation, the largest U.S. dairy-farmer organization, commended the U.S. Senate for the bill’s dairy and agriculture provisions, which will create greater financial certainty for producers. NMPF is hopeful that the House will take up the bill and get it to the president’s desk quickly.

“Dairy farmers are grateful for legislation that will create several key opportunities for dairy,” said Gregg Doud, NMPF president and CEO in a statement. “Following last month’s successful vote in the House, we are excited that the Senate’s legislation also positions these investments to benefit dairy farmers and the cooperatives they own. We hope they are enacted into law as swiftly as possible.”

Congress is attempting to pass the measure prior to the July 4 Congressional recess.

The Senate Agriculture Committee’s portion of the bill includes numerous NMPF-backed requests that would strengthen dairy and farm policy, including:

  • Renewing the Dairy Margin Coverage (DMC) program through 2031; updating DMC’s production history calculation 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 their coverage for the duration of the bill;
  • Providing mandatory funding for USDA to conduct mandatory dairy processing cost surveys every two years to provide better data to inform future make allowance conversations;
  • Folding 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;
  • Providing new trade promotion funding based on current programs that return well over $20 in export revenue for every 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 Senate Finance Committee’s portion of the bill, released on June 16, makes permanent the Section 199A tax deduction, enabling dairy farmer-owned cooperatives to continue either passing the deduction back to their farmer owners or reinvesting it in their cooperatives.

NMPF is grateful to House and Senate committee leaders, including Agriculture Committee Chairmen GT Thompson, R-PA, and John Boozman, R-AR and tax-writing committee chairs Rep. Jason Smith, R-MO, and Sen. Mike Crapo, R-ID, and other members who have authored these provisions in the bill moving toward President Trump’s desk.

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

Posted on by Theresa Sweeney

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

Posted on by Theresa Sweeney

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

Posted on by Theresa Sweeney

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

Posted on by Theresa Sweeney

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

Posted on by Chris Galen

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

Posted on by Theresa Sweeney

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

Posted on by Theresa Sweeney

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

Posted on by Theresa Sweeney

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

Posted on by Alan Bjerga
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.