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Northey provides update on DMC

USDA Undersecretary Bill Northey says about 5,300 producers that have certified production during the first 10 days of sign up for the Dairy Margin Coverage Program.

Almost all producers are choosing the highest coverage level of $9.50 for their first five million pounds of milk and then the lower cost coverage level of $4.

“We’re seeing the large dairy states being where the signup is happening: Wisconsin, New York, Pennsylvania, Minnesota, and Michigan.”

The signup is open till the end of September and retroactive to January.  Northey says farmers who sign up for the $9.50 margin level will receive payments to cover the cost of the program.

“We now know that participation this year alone with more than pay for the premium for this year’s coverage and will start to pay the premium in the next few years.”      

Northey tells Brownfield while they hope for better margins ahead, the program is expected to provide $100s of millions to producers.

Payments for those that enroll are expected to start during July.