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Thompson Reminds Farmers New Dairy Margin Coverage Signup Begins Monday, June 17

June 14, 2019
Press Release
2018 Farm Bill created new dairy safety net

WASHINGTON – U.S. Representative Glenn ‘GT’ Thompson today reminded dairy farmers that signup begins on Monday, June 17 for the new Dairy Margin Coverage (DMC) program.

DMC is the cornerstone program of the dairy safety net that helps dairy producers manage the volatility of milk and feed prices, and is operated by the U.S. Department of Agriculture’s Farm Service Agency (FSA).

DMC was authorized in the 2018 Farm Bill, replacing the former Margin Protection Program for Dairy (MPP-Dairy). This new program offers protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.

“I encourage all dairy farmers in the Commonwealth to take a strong look at this new program,” Rep. Thompson said. “We cannot over communicate about the programs available to assist dairy production during challenging times. The Dairy Margin Coverage program is designed to ease the burden and keep family farms solvent.”

The program provides coverage retroactive to January 1, 2019, with applicable payments following soon after enrollment. At the time of signup, dairy producers can choose between the $4.00 to $9.50 coverage levels.

The Farm Bill also allows producers who participated in MPP-Dairy from 2014-2017 to receive a repayment or credit for part of the premiums paid into the program. FSA has been providing premium reimbursements to producers since last month and those that elect the 75 percent credit option will now have that credit applied toward 2019 DMC premiums.

MORE INFORMATION

All dairy operations in the United States are eligible for the DMC program. An operation can be run either by a single producer or multiple producers who commercially produce and market cows’ milk.

Eligible dairy operations must have a production history determined by FSA. For most operations, production history is based on the highest milk production in 2011, 2012 and 2013. Newer dairy operations have other options for determining production history. Producers may contact their local FSA office to get their verified production history.

Dairy producers also are reminded that 2018 Farm Bill provisions allow for dairy operation to participate in both FSA’s DMC program and the Risk Management Agency’s Livestock Gross Margin (LGM-Dairy) program. There are also no restrictions from participating in DMC in conjunction with any other RMA insurance products.

USDA has also created an online decision tool, which helps farmers determine coverage levels in advance of signing up for DMC.  

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