The deadline to enroll in the 2021 Dairy Margin Coverage Program is Friday, Dec. 11, according to a news release from USDA. The signup period began in October.
Dairy Margin Coverage (DMC) is a voluntary risk management program that offers 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.
Here is a fact sheet about DMC: https://www.fsa.usda.gov/…
For producers enrolled in DMC for 2020, the fourth payment was triggered in September at $9.40. Including that September payment, dairy producers have received 11 monthly payments for over $472 million since DMC began in January 2019.
To enroll, producers must certify with FSA that the operation is commercially marketing milk, sign all required forms, and pay the $100 administrative fee unless the dairy operation qualifies for a limited resource, beginning, socially disadvantaged, or military veteran farmer and rancher waiver.
Producers interested in DMC have the option to select a $4.00 catastrophic level of coverage with no premium fee or they can choose to buy-up coverage where the premium is based on margin triggers between $4.50 and $9.50 on 5% to 95% of established production history.
To determine the appropriate level of coverage for a specific dairy operation, producers can utilize the recently updated online dairy decision tool. The decision tool is designed to assist producers with calculating total premium costs and administrative fees associated with participation in DMC. An informational video is available, too.
For more information, visit farmers.gov DMC webpage, or contact your local USDA Service Center. To locate your local FSA office, visit farmers.gov/service-center-locator.
All USDA Service Centers are open for business, including some that are open to visitors to conduct business in person by appointment only. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service, or any other Service Center agency should call ahead and schedule an appointment. Service Centers that are open for appointments will pre-screen visitors based on health concerns or recent travel, and visitors must adhere to social distancing guidelines. Visitors are required to wear a face covering during their appointment. Fieldwork will continue with appropriate social distancing. More information can be found at farmers.gov/coronavirus.