By Andi Anderson
Indiana dairy producers are reminded that the enrollment period for the 2025 Dairy Margin Coverage (DMC) program closes on March 31, 2025. This initiative, administered by the U.S. Department of Agriculture (USDA), serves as an important safety net that reimburses producers when the margin between national milk prices and average feed costs drops below a selected coverage level.
Currently, 105 dairy operations have already been enrolled for 2025. “We encourage producers to join the 105 dairy operations in Indiana that have already signed up for this important safety net program in advance of the deadline,” said USDA Farm Service Agency (FSA) Deputy State Executive Director Susan Houston in Indiana.
“At $0.15 per hundredweight for $9.50 coverage, risk protection through Dairy Margin Coverage is a cost-effective tool to manage risk and provide security for your operations.”
The American Relief Act, 2025 extended provisions originally introduced in the 2018 Farm Bill, ensuring producers can access DMC through this coverage year. To further enhance program effectiveness, the DMC formula now incorporates 100 percent premium alfalfa hay in its feed cost calculations, which truly more accurately reflects the expenses dairy operations face.
When the margin between milk prices and feed costs falls below the selected threshold, DMC payments are issued to participating operations.
Coverage levels vary, and producers can choose the options that best align with their risk management needs. A one-hundred-dollar administrative fee applies for enrollment unless certain qualifications, such as limited resources or socially disadvantaged producer status, are met.
Eligible operations in these categories may have the fee waived. Producers are encouraged to consider the benefits of DMC, which is designed to reduce the impact of fluctuating milk prices and rising feed costs on dairy operations.
With the final enrollment deadline approaching, interested parties should contact their local USDA Service Center to learn more about the application process, coverage choices, and associated costs. By participating in DMC, dairy operations can gain valuable risk mitigation and maintain stable profitability during periods of market uncertainty. This program remains a pivotal component of the USDA’s strategy to support the long-term success of the dairy sector.
Photo Credits:gettyimages-ahavelaar
Categories: Indiana, Crops, Hay & Forage, Alfalfa, Livestock, Dairy Cattle