NASHVILLE, TENN. (RFD NEWS) — Dairy producers have until February 26 to enroll in the Dairy Margin Coverage (DMC) program, a key federal safety net designed to protect milk margins as price volatility and feed costs pressure farm income.
Administered by USDA’s Farm Service Agency, DMC provides payments when the margin between the all-milk price and average feed costs falls below a coverage level selected by the producer. Coverage options range from $4.00 to $9.50 per hundredweight, with payments calculated monthly when margins trigger support. Enrollment for 2026 opened January 12.
Recent updates increase Tier 1 coverage from 5 million to 6 million pounds of production, allowing more milk to qualify for the program’s most affordable premium structure. Production history will now be based on the highest annual marketings from 2021, 2022, or 2023. Producers may also lock in coverage levels for six years, through 2031, in exchange for a 25 percent premium discount.
Farm organizations say the program remains an essential risk management tool, particularly for smaller operations vulnerable to margin swings.
Milk producers have until this Thursday to enroll in the Dairy Margin Coverage (DMC) Program, a key risk-management tool for the dairy industry. The program was recently updated through the “One Big Beautiful Bill” Act (OBBBA), adding new incentives aimed at increasing participation, including a 25 percent premium reduction for producers who choose a long-term commitment.
Alan Bjerga with the National Milk Producers Federation joined us on Tuesday’s Market Day Report to provide an overview of the program and explain why it remains an important safety net for dairy operations.
In his interview with RFD NEWS, Bjerga outlined the fundamentals of the DMC program, emphasizing its role in helping producers manage volatility between milk prices and feed costs. He also walked through recent improvements to the program, noting that the premium reduction is intended to provide producers with greater certainty and encourage longer-term participation.
In addition, Bjerga reviewed what producers need to know about the sign-up process and reminded dairy farmers that enrollment must be completed by the upcoming deadline. With time running short, he urged producers to review their options and take advantage of the updated provisions now in place.
