Dairy Margin Coverage
Dairy Margin Coverage (DMC) is a voluntary USDA risk-management program that pays dairy producers when the margin between milk prices and feed costs falls below a specified level. Enrollment for the 2026 DMC program opened on Jan. 12 and runs through Feb. 26 2026, with expanded coverage limits, updated production-history rules and options to lock in multi-year coverage with discounted premiums.
As labor and fuel costs surge, the Dairy Margin Coverage program is failing to reflect on-farm reality. Enter the data-driven Dairy Revenue Protection tool that accounts for volatile market prices and production.
With the DMC enrollment deadline just days away, current market signals are prompting producers to take a closer look at 2026 coverage options.
If December was a warning, the projections for the first half of 2026 are a siren. The latest price predictions updated on Jan. 30 suggest a sharp economic turn is underway.
With milk prices under pressure and global supply weighing on margins, analysts say Dairy Margin Coverage is likely to provide early financial support for producers in 2026.
Enrollment for the 2026 Dairy Margin Coverage program opens Jan. 12 with expanded Tier 1 coverage, new production history rules and discounted multiyear premiums following improvements made under the One Big Beautiful Bill Act.
The Dairy Margin Coverage (DMC) calculators have been nonstop in 2023. In July, the DMC hit its lowest level since the program began in 2019. Zach Myers with MVMP provides an update on the program’s overall snapshot.
Producers have been wired to head to the mailbox this calendar year, as DMC payments have been triggered due to a stretch of low milk income. As expected, another round of DMC payments will hit producer’s mailboxes soon.
Alyssa Badger with HighGround Dairy shares that producers have felt the whiplash milk prices have delivered, swinging from record highs last spring to extreme lows this summer which was caused by a combination of events.
Bad times don’t last forever. Neither do good days. The mood of the industry quickly changed from an upbeat tone in 2022 to a sad melancholy note this summer.
As predicted, a very large Dairy Margin Coverage (DMC) payment is coming to producer’s mailboxes. In fact, June’s DMC income over feed cost calculation set a new record low at just $3.65/cwt.
The 2018 farm bill was stamped with a $428 billion price tag when the bill was passed. With the bill set to expire on Sept. 30, here’s what NMPF is lining up for the 2023 farm bill negotiating table.
The current Farm Bill is due to expire in 2023. While that may still seem a long way away, unity in the dairy industry to create a 500-foot view will be essential to spell success for dairy with the next Farm Bill.
With so much uncertainty swirling on both the income and cost sides of the ledger, Phil Plourd with ever.ag says that’s a reason to be proactive about risk management, not complacent.
Two dairy producers on opposite sides of the country talk about the challenges that face them, how technology will play a role in the future and what excites them about the future of dairy.
The production history can be increased up to 5 million pounds.
A new federal program to help hard-pressed dairy farmers is expected to be ready for enrollment in June 2019, as farmers undergo their fifth year of low milk prices that have driven thousands out of business.
‘Proprietary handlers establishing new forward contracts on or after October 1, 2018 will not be exempt from paying minimum Federal order prices.’ --USDA
Enrollment for the 2020 Dairy Margin Coverage program ends December 13.
![“That’s one of the things that can actually put money in dairy farmers’ pockets,” he says. “[Congressman] Collin Peterson has said if a dairy farmer hasn’t signed up for the program, they’re out of their mind.”](https://assets.farmjournal.com/dims4/default/988118b/2147483647/strip/true/crop/4263x2848+12+0/resize/250x167!/format/webp/quality/90/?url=https%3A%2F%2Ffj-corp-pub.s3.us-east-2.amazonaws.com%2Fs3fs-public%2F52D6573E-5E43-4E29-B437E3AA4E41A14A.jpg)
U.S. Deputy Secretary of Agriculture Steve Censky urged dairy farmers to register for the improved program at the Ag Outlook Forum on Sept. 23 in Kansas City, Mo.
Dairy farmers have another option for risk-management with a new insurance product being offered by American Farm Bureau Federation (AFBF).
‘Proprietary handlers establishing new forward contracts on or after October 1, 2018 will not be exempt from paying minimum Federal order prices.’ --USDA
A new federal program to help hard-pressed dairy farmers is expected to be ready for enrollment in June 2019, as farmers undergo their fifth year of low milk prices that have driven thousands out of business.
Many dairy producers are hopeful that the Dairy Margin Coverage (DMC) program through the 2018 Farm Bill will provide a better safety net.
While issuing another $100 million in back-payments for the Margin Protection Program, the USDA extended the MPP enrollment deadline to ensure dairy farmers have every opportunity to join if they want to.