If harvest is still delayed this week, you might take the opportunity to visit your local Farm Service Agency office and enroll in the 2020 Dairy Margin Coverage (DMC) program. Enrollment for the 2020 calendar year opened this week and ends December 13.
While the prospects for higher milk prices next year appear promising, anything can happen, say market analysts.
“Dairy producers should definitely consider coverage for 2020 as even the slightest drop in margin can trigger payments, says Bill Northey, United States Department of Agriculture (USDA) Under Secretary for Farm Production and Conservation.
“Dairy producers should consider enrolling in DMC to guard against what has been, for several years, an extremely unforgiving market,” he says.
In 2019, USDA has already paid out more than $300 million in DMC payments.