The US Department of Agriculture says dairy farmers can enrol for 2027 Dairy Margin Coverage (DMC) from 5 October to 18 December 2026, American Ag Network reports. DMC is a voluntary risk-management programme that pays when the gap between the national all-milk price and average feed cost falls below the coverage level a farmer chooses.
The Working Families Tax Cuts Act reauthorised DMC through 2031 and strengthened it from the 2026 programme year: production eligible for Tier 1 protection rose from five to six million pounds, production histories were updated to reflect current operations, and farmers could lock in coverage through 2031 at a 25 percent lower premium.
Coverage levels range from $4.00 to $9.50 per hundredweight. A catastrophic level is available at no premium, though a $100 annual administrative fee generally applies, and higher levels can be bought for more protection. USDA offers an online decision tool and enrolment runs through local Farm Service Agency offices.
Farmers who chose the multi-year option for 2026 to 2031 must still certify that they market milk commercially, sign a contract and pay the $100 fee each year to keep their coverage and the 25 percent discount. "Dairy Margin Coverage provides an affordable layer of protection when margins tighten," said FSA Administrator Bill Beam.
Photo: USDA / Wikimedia Commons (Public domain)
Source: American Ag Network
Comments
(0)