DMC Payments Top $300 Million
More than 22,000 dairy farmers enrolled in the new Dairy Margin Coverage program, paying out more than $300 million this year. The National Milk Producers Federation says none of the assistance would have occurred under the old Margin Protection Program. The DMC program replaced MPP in the 2018 farm bill. Monthly milk price/feed cost margins so far in 2019 have been above the $8 per hundredweight coverage cutoff that existed under MPP, but below the new $9.50 per hundredweight coverage limit under DMC. An analysis of the program found that under the old MPP rules, the total paid out under the entire program so far this year would have been $75,000, about $3 per farmer and a net loss after premium costs. Wisconsin signed up the largest number of farmers, while California enrolled the highest production volume of any state. NMPF CEO Jim Mulhern says, “The Dairy Margin Coverage program has proven its worth.” Enrollment into the program for 2020 begins Monday.