USDA unveils Dairy Margin Coverage Program

Pennsylvania Department of Agriculture

Dairy producers encouraged to consider new USDA Dairy Margin Coverage Program

Agriculture Secretary Russell Redding is urging producers to look into using the USDA’s new Dairy Margin Coverage Program as part of their risk management and financial planning.

DMC replaces the Margin Protection Program for Dairy Producers. The new DMC increases coverage level options and provides greater flexibility to producers. DMC is a voluntary program that offers protection to dairy producers when the difference between the milk price and average feed price (the margin) falls below a dollar amount selected by the producer.

“When congress was considering the 2018 Farm Bill, our department advocated alongside Pennsylvania farmers for improvements to crop insurance, and congress listened,” said Secretary Redding. “This program is a direct result of that input. Please consider using this tool to help your dairy operation weather the uncertainty of today’s markets.”

 

 

Producers should visit their local USDA Farm Service Agency office to see how DMC can work for their farms, Redding said.

Under the 2018 Farm Bill, a dairy producer can use both DMC and crop insurance policies such as Livestock Gross Margin Dairy and Dairy Revenue Protection.

For more information or to find an agent, visit www.cropinsurancepa.com. For the nearest FSA office, visit www.fsa.usda.gov/pa and click “county offices” or call 717-237-2117.

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