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USDA opens sign-up window for Dairy Margin Coverage program

USDA opened the sign-up window for the 2023 Dairy Margin Coverage program Monday.  The DMC program is one of the risk management tools available to help producers manage changes in milk and feed prices.

FSA Administrator Zach Ducheneaux says, “Dairy Margin Coverage provides critical assistance to our nation’s small- and mid-sized dairies, helping make sure they can manage the numerous and often unpredictable uncertainties that adversely impact market prices for milk.”

So far in 2022, DMC payments to more than 17,000 dairy operations have triggered for August for more than $47.9 million. And the agency predicts an indemnity payment will be triggered for September as well.

Supplemental DMC coverage is applicable to calendar years 2021, 2022, and 2023.  Eligible dairy operations with less than 5 million pounds of established production history may enroll supplemental pounds.  

For producers who enrolled in Supplemental DMC in 2022, the supplemental coverage will automatically be added to the 2023 DMC contract that previously established a supplemental production history. 

The signup deadline for 2023 is December 9^th.