Dairy producers can now enroll in the Dairy Margin Coverage for calendar year 2020. USDA’s Farm Service Agency opened signup yesterday for the program that helps producers manage economic risk brought on by milk price and feed cost disparities.
The DMC program offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost falls below a certain dollar amount selected by the producer. The deadline to enroll in DMC for 2020 is Dec. 13, 2019.
Dairy farmers earned more than $300 million dollars from the program in 2019 so far. Producers are encouraged to take advantage of this very important risk management tool for 2020.
All producers who want 2020 coverage, even those who took advantage of the 25 percent premium discount by locking in the coverage level for five years of margin protection coverage are required to visit the USDA office during this signup period to pay the annual administrative fee.