WASHINGTON, DC – USDA will begin accepting enrollment applications for the 2021 Dairy Margin Coverage (DMC) program this week. Signup will continue through December 11, 2020, on the voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. For reference, DMC payments were triggered in seven months of 2019 and three months so far in 2020. More than 23,000 operations enrolled in the program in 2019, while less than 60 percent of those enrolled in 2020. To determine an appropriate level of coverage for a specific dairy operation, producers can utilize a recently updated online dairy decision tool that will assist producers with calculating total premium costs and administrative fees associated with participation in DMC.
(SOURCE: All Ag News)