Low Prices Trigger Dairy Coverage Program

The U.S. Department of Agriculture’s Farm Service Agency (FSA) announced that the January 2019 income over feed cost margin was $7.99 per hundredweight, triggering the first payment for eligible dairy producers who purchase the appropriate level of coverage under the new, but yet-to-be-established Dairy Margin Coverage (DMC) program.

DMC, which replaces the Margin Protection Program for Dairy, is a voluntary risk-management program for dairy producers that was authorized by the 2018 Farm Bill. DMC 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.

Agriculture Secretary Sonny Perdue announced that sign-up for DMC will open by mid-June of this year. At the time of sign-up, producers who elect a DMC coverage level between $8 and $9.50 would be eligible for a payment for January 2019.

For more information about DMC, visit farmers.gov/farmbill.