Dairy Margin Coverage

Deadline to Enroll in 2022 Dairy Margin Coverage is March 25

Dan Dairy, Economy, USDA-FSA

Dairy Margin Coverage

The U.S. Department of Agriculture (USDA) reminds dairy producers the deadline to enroll in Dairy Margin Coverage (DMC) and the new Supplemental Dairy Margin Coverage (SDMC) for 2022 is March 25, 2022. USDA’s Farm Service Agency (FSA) opened DMC and SDMC signup in December 2021 to help producers manage economic risk brought on by milk price and feed cost disparities.

Producers who enrolled in DMC for 2021 received margin payments each month, January through November for a total of $1.2 billion. That’s an average payment of $60,275 per operation.

The DMC program offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer. Supplemental DMC will provide $580 million to better help small and mid-sized dairy operations that have increased production over the years but were not able to enroll the additional production. Now, dairy producers will be able to retroactively receive payments for that supplemental production.

For more information, visit the FSA dairy programs webpage, or contact your local USDA Service Center.