ARLINGTON, VA – Signup for the Dairy Margin Coverage Program ends Thursday. NMPF is urging farmers to apply for the program as part of a risk management strategy that helps dairy producers weather economic swings.
“Dairy Margin Coverage is an essential part of a dairy farmer’s business resilience,” Gregg Doud, president & CEO of NMPF, said. “Smaller farmers gain important protection against lower margins, while larger farmers gain catastrophic coverage at little or even no cost.
“This signup is the first since the program was reauthorized last year, and it includes coverage improvements as well as a 25% premium reduction for a long-term commitment,” he continued. “Farmers can benefit greatly from participating in a program that has helped thousands of dairies.”
DMC changes made as part of the One Big Beautiful Bill Act passed last year include:
- An update to production history based on the highest annual milk production level from any one of the 2021, 2022, or 2023 calendar years.
- USDA clarification on how new operations (i.e., those that began marketing milk after Jan. 1, 2023) will be able to establish production history.
- Eligibility for operations to enroll their first 6 million pounds of production at the Tier 1 level, up from 5 million pounds, with all additional production covered under Tier 2. Premium rate fees under Tiers 1 and 2 are unchanged.
- An opportunity for operations to make a one-time election of coverage level and coverage percentage, “locking in” those elections for a six-year period from January 2026-December 2031. Those who elect this option must participate in DMC at the same coverage levels for the six-year period and will receive a 25% premium discount for doing so.
Farmers interested in participating in DMC can complete their paperwork in consultation with their local Farm Service Agency Office. Cooperatives also stand ready to assist.