Here are important updates for the 2026 program year:
- DMC’s Tier 1 coverage level has increased from five million pounds to six million pounds.
- All dairy operations that elect to enroll in DMC for 2026 will establish a new production history.
- Existing dairy operations that started marketing milk on or before January 1, 2023 will use the higher of milk marketings for the years of 2021, 2022, or 2023.
- New dairy operations starting after January 1, 2023, will use their first year of monthly milk marketings, even for a partial year. Milk marketing statements or production evidence are required to establish a production history.
- Dairy operations also have the option to lock-in coverage levels for six years (2026-2031) with premium fees discounted by 25%.
What Is Dairy Margin Coverage?
Dairy Margin Coverage is a margin-based insurance program authorized by the 2018 Farm Bill and administered by the USDA’s Farm Service Agency (FSA). DMC enrollment for the 2026 program year will be open from January 12 to February 26, 2026. For farms that have never enrolled in DMC before, it is important to understand that the DMC program is intended to serve as a safety net against volatility in either your milk price or in the price you are paying for your feed.
DMC offers different levels of coverage, including an option that is free to producers, minus a $100 administrative fee. To determine the appropriate level of DMC coverage for a specific dairy operation, click here to use the online dairy decision tool.
Enrollment in the 2026 DMC Program must be done at a local FSA Office starting January 12. Consider calling ahead to schedule an appointment at your local FSA Office. Visit the DMC webpage to learn more or contact your local USDA Service Center.
What Do Coverage Levels and Tier I and II Premiums Look Like?
View the chart below with more helpful information about the DMC Program. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can also use this online dairy decision tool.
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