Dairy Margin Coverage Program Pays Out More than $100 Million to Iowa Dairy Farmers from 2019 to 2023
The Dairy Margin Coverage (DMC) Program was authorized by the Agriculture Improvement Act of 2018 (2018 Farm Bill). This program replaced the Margin Protection Program for Dairy (MPP-Dairy). Similar to the MPP-Dairy, the DMC program is a voluntary program that provides dairy operations with risk management coverage. DMC makes payments to producers when the difference (the margin) between the national price of milk (all-milk price) and the average cost of feed (average price of corn, soybeans, and blended alfalfa hay) declines below a certain level selected by the program participants.
All dairy operations in the U.S. are considered eligible for the DMC program. Those eligible operations must have a production history as established by USDA Farm Service Agency (USDA-FSA) and must be registered to participate during the signup announced by FSA. The participants must pay a $100 administrative fee annually for each year they participate. An...
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