By Andi Anderson
Enrollment for the Dairy Margin Coverage (DMC) program is now open, and the American Farm Bureau Federation is urging dairy producers to take advantage of this critical risk management initiative. The Department of Agriculture has initiated the enrollment period for 2024, providing an opportunity for dairy farmers to mitigate risks associated with low margins caused by factors such as low milk prices or high feed costs.
According to Danny Munch, an economist with the American Farm Bureau Federation, DMC offers a vital risk management protection for dairy farmers under challenging conditions. The program allows producers to select a coverage level ranging from $4 to $9.50 per hundredweight in 50 cent increments. Additionally, farmers can choose the coverage level for their production history, ranging from five percent to 95 percent of their coverage history.
The enrollment period, which began on Wednesday, has been delayed this year due to software updates and the need to publish a new rule related to production history. However, the good news is that there will be retroactive coverage and payment for those who enroll promptly.
While encouraging enrollment in DMC, the American Farm Bureau Federation is also advocating for broader changes in how dairy farmers are compensated. They are seeking emergency implementation of the higher-of-Class-I mover, in collaboration with the National Farmers Union. The proposed change aims to address formula-related losses and ensure fair compensation for dairy producers.
Dairy farmers are encouraged to learn more about the Dairy Margin Coverage program and take advantage of this risk management tool by visiting fb.org. The enrollment period concludes on April 29, offering an opportunity for dairy producers to secure retroactive benefits and strengthen their financial resilience.
Photo Credit: american-farm-bureau-federation
Categories: Indiana, Livestock, Dairy Cattle