What To Know About Dairy Margin Coverage
The 2018 Farm Bill authorized the new Dairy Margin Coverage (DMC) program, which is a voluntary risk management program for dairy producers. DMC replaces the Margin Protection Program for Dairy (MPP-Dairy).
DMC continues to offer protection to dairy producers when the difference between the all milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer.
The program provides:
- catastrophic coverage, at no cost to the producer, other than an annual $100 administrative fee that is waived in some cases; and
- various levels of buy-up coverage.
DMC helps producers manage the ups and downs. So far, DMC payments have been triggered in January, February, March and April 2019.
FSA and the University of Wisconsin partnered on the development of a DMC decision support tool that helps producers determine the level of coverage under a variety of conditions that will provide them with the strongest financial safety net. It allows farmers to simplify their coverage level selection by combining operation data and other key variables to calculate coverage needs based on price projections.
For a full description of the Dairy Margin Coverage program, visit the FSA website here.
View the latest DMC Fact Sheet for a quick summary of the program here.
For more detailed questions, view this document about the DMC.
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