Enrollment for the 2020 Dairy Margin Coverage program ends December 13.
While the prospects for higher milk prices next year appear promising, analysts agree anything can happen.
“Dairy producers should definitely consider coverage for 2020 as even the slightest drop in margin can trigger payments,” says Bill Northey, 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.”
In 2019, USDA has paid farmers more than $300 million in DMC payments.
The 2020 DMC enrollment reported by individual states as of November 25, 2019 shows 4,015 or 14.84% of the 27,059 dairy farms with established production history are enrolled in the program.
For those who haven’t enrolled, USDA’s DMC decision tool was designed in partnership with the university of Wisconsin to help producers determine the level of coverage under a variety of conditions that will provide them with the strongest financial safety net. Use the decision tool, here.
To learn more about the program and to enroll, visit your local FSA office or click here.