The USDA’s Farm Service Agency (FSA) has opened the enrollment in the Dairy Margin Coverage (DMC) program. The enrollment period runs from January 29 to March 31, 2025.
At $0.15 per hundredweight for $9.50 coverage, risk protection through DMC is a often a no-brainer investment, but this year more investigation is required. Producers are urged to get in touch with their local Farm Service Agency office to initiate the sign-up process.
The announcement came after the 2018 Farm Bill was extended for a second time with the narrow passage of the American Relief Act on Dec. 21, 2024. The extension provides continuation of key farm safety net programs, such as DMC, to prevent marketplace disruption from the farm level and beyond.
The monthly margin under the Dairy Margin Coverage (DMC) program lost $0.88/cwt from a month before, yet, at $14.29/cwt, still came in as the third highest since margin protection became the basic safety net program for dairy in 2015.
The November U.S. average all-milk price dropped by $1/cwt from October to $24.20/cwt, while the DMC feed cost formula declined by $0.12/cwt. A lower soybean meal price more than offset a higher corn price; the premium alfalfa hay price was little changed.
The end of December dairy and grain futures indicated that the DMC margin would average around $12.50/cwt for all of calendar year 2025, which would be $0.60/cwt higher than the 2024 annual average and well above the trigger under which payments begin.