Update About Dairy Margin Coverage (DMC) Program for 2025 Year

Center for Dairy Excellence

The USDA announced that it expects to open the Dairy Margin Coverage (DMC) enrollment for the 2025 Program Year NEXT WEEK. The enrollment period will run from January 29 to March 31, 2025.  As of January 17, 2025, the DMC Decision Tool forecasts December 2024’s margin to be $13.73 per cwt. At the maximum $9.50 margin coverage, DMC provided a gross benefit of $0.09 per cwt.

Keep reading for more details about the DMC program, and see how other dairy producers have used the risk management program.

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 2025 program year will be open from January 29 to March 31, 2025. 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. Farms can protect anywhere from a $4 to a $9.50 margin in 50-cent increments.

How Do Producers Sign Up for DMC?

Enrollment in the 2025 DMC Program must be done at a local FSA Office starting January 29. 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, and click here to download a one-pager with more helpful information about the DMC Program. This chart is included on the one-pager. 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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