The U.S. Department of Agriculture's Farm Service Agency closes enrollment for the Dairy Margin Coverage program Sept. 20. The agency has started issuing payments to producers who purchased coverage, according to a news release.
Authorized by the 2018 Farm Bill, DMC replaces the Margin Protection Program for Dairy, the agency said. DMC offers protection to dairy producers when the difference between the all-milk price and the average feed cost falls below a certain dollar amount selected by the producer. Nearly 10,000 operations have signed up for the program. FSA has paid approximately $100 million to producers so far for January through May.
"Times have been especially tough for dairy farmers, and while we hope producers’ margins will increase, the Dairy Margin Coverage program is providing support at a critical time for many in the industry,” said Bill Northey, USDA under secretary for farm production and conservation.