Deadline approaching to enroll for 2023 Dairy Margin Coverage

Producers only have a short time left to enroll for the 2023 Dairy margin coverage program before the window closes on December 9th.

The window is closing for producers to apply for the 2023 Dairy Margin Coverage program.

The DMC offers protection to dairy producers when the difference between the “all-milk price” and the “average feed price” falls below a certain dollar amount, according to USDA. That amount is set by the producer.

Included in the program is catastrophic coverage which comes at no cost to the producer, other than an annual $100 fee that the agency says is waived in some cases.

Chris Galen is the Senior Vice President of Membership Services and Strategic Initiatives at the National Milk Producers Federation. He says the program is a valuable tool for dairy farmers and a government program that takes into account not only milk prices but margins, too.

“This year we saw record-high milk prices, particularly in the summer. But at the same time, input costs chased those milk prices just as high. And as a result, as we’ve headed into the fall this year, we actually had two payments generated so far and it’s possible that we’ll get some additional ones this year,” Galen said.

Around 19,000 dairy operations nationwide were enrolled in the program last year, having received more than one-billion dollars in payouts . The agency also offers supplemental coverage through the DMC, but you have to be enrolled in the program for the coming year.

“We know most operations are in the program, but not all. We’ve got probably close to a third that are eligible that are not using it. And so, we’d really ask those farmers to reconsider, because as we head into 2023, we know that milk prices aren’t going to be as strong. We know that input costs are still going to be significant,” Galen said.

The window to apply for coverage closes on December 9th.


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