May Margin Triggers Dairy Margin Coverage Program Payment
The Department of Agriculture’s Farm Service Agency announced the May 2020 income over feed cost margin triggered the third payment in 2020 of the Dairy Margin Coverage program. In May, the income over feed cost margin was $5.37 per hundredweight. To date, FSA has issued more than $176 million in benefits to dairy producers who purchased DMC coverage for 2020. Authorized by the 2018 farm bill, DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price, the margin, falls below a certain dollar amount selected by the producer. Over 13,000 operations enrolled in the program for the 2020 calendar year. Although DMC enrollment for 2020 coverage has closed, signup for 2021 coverage will begin October 13 and will run through December 11, 2020. For more information, visit the farmers.gov DMC webpage or contact your local USDA Service Center.