ARLINGTON, Va. — With sign-up for the 2019 Dairy Margin Coverage program ending Friday, the National Milk Producers Federation urged all dairy farmers to enroll in the program, which guarantees a payout for producers that’s higher than program premiums in 2019.

The DMC, the main risk-protection tool for dairy farmers enacted in the 2018 farm bill, is guaranteed to pay all producers enrolled at the maximum $9.50/cwt. coverage level for every month of production through July, according to USDA data.  More than 71% of dairy operations with an established DMC production history have enrolled so far for this year, representing more than 19,000 producers nationwide.

“DMC signup, especially at the maximum $9.50 coverage level, is a no-brainer for dairy producers,” said Jim Mulhern, NMPF President and CEO. “But to take advantage of this program, delay is no longer possible. Farmers need to sign up now.”

The DMC, created in the 2018 Farm Bill, is a much more robust safety net for dairy producers of all sizes than the Margin Protection Program, which has been discontinued. DMC improvements include:

• Affordable higher coverage levels that permit all dairy producers to insure margins up to $9.50/cwt. on their Tier 1 (first five million pounds) production history, a higher level than previous programs.
• A new option for producers to receive a 25 percent discount on their premiums if they agree to lock in their coverage for the five-year period of this Farm Bill.  However, producers will be allowed to pay their premiums annually even if they elect the five-year discount.
• The feed-cost formula has been improved to include dairy quality hay values, which better reflects the true cost of feeding dairy cows.
• Affordable $5.00 coverage that lowers premium costs by roughly 88 percent. This creates more meaningful catastrophic-type coverage at a reasonable cost for larger producers without distorting the market signals needed to balance supply with demand.

NMPF has a resource page on its new website with more information about the program, including this 4-page brochure summarizing key facts about the DMC.

–National Milk Producers Federation

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