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USDA will begin accepting applications for the Dairy Margin Coverage (DMC) program on Monday, October 17, 2022 for 2023 enrollment. This signup period – which runs to Jan. 31, 2023 – enables producers to get coverage through this important safety-net program for another year as well as get additional assistance through the Supplemental DMC. See News Release for more information.
DMC continues to offer 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.
Decision Tool
The DMC decision tool has been enhanced and was developed in partnership with representatives from the University of Minnesota and University of Wisconsin to help producers determine the level of coverage under a variety of conditions that will provide them with the strongest financial safety net.
Enrollment Reports
Following the close of the 2023 enrollment period, DMC Enrollment, Production and Payment reports will be made available online. More information regarding posting dates and times will be provided soon.
The 2018 Farm Bill authorized the new Dairy Margin Coverage (DMC) program, which is a voluntary risk management program for dairy producers. DMC replaces the Margin Protection Program for Dairy (MPP-Dairy).
Program at a Glance
The program provides:
Benefits
At a milk margin minus feed costs of $9.50 or less, DMC payments are possible depending on the level of coverage chosen by the dairy producer.
For the 2022 DMC program year, payments have triggered in August and September.
For the 2021 DMC program year, Payments triggered in January, February, March, April, May, June, July, August, September, October and November.
For the 2020 DMC program year, payments triggered for March, April, May, September and December.
For the 2019 DMC program year, payments triggered in January, February, March, April, May, June and July.
Who is Eligible?
To be eligible for DMC, a dairy operation must:
Dairy operations may consist of one or more dairy producers who are in the business of commercially producing and marketing milk as a single unit.
Dairy producers who are members of the dairy operation must share in the risk of producing milk and make contributions to the dairy operation that are at least commensurate with their share of the proceeds of the operation.
Dairy operations must be in compliance with highly erodible land and wetland conservation provisions. For more information, visit fsa.usda.gov/compliance. Adjusted gross income provisions do not apply to DMC.
Producers may have more than one dairy operation, but they must be separate and distinct in order to have a separate contract.
How it Works
To participate in DMC, dairy producers:
Producers have the choice to lock in coverage levels until 2023 and receive a 25 percent discount on their DMC premiums.
FSA and representatives from the University of Minnesota and the University of Wisconsin have partnered on the development of a DMC decision support tool that helps producers determine the level of coverage under a variety of conditions that will provide them with the strongest financial safety net. It allows farmers to simplify their coverage level selection by combining operation data and other key variables to calculate coverage needs based on price projections Visit the tool.
How to Apply
FSA opened enrollment for both DMC (for calendar year 2023) and for Supplemental DMC on Oct. 17. The deadline to enroll is Jan. 31, 2023.
Supplemental DMC coverage is applicable to calendar years 2021, 2022 and 2023. Eligible dairy operations with less than 5 million pounds of established production history may enroll supplemental pounds.
For producers who enrolled in Supplemental DMC in 2022, the supplemental coverage
will automatically be added to the 2023 DMC contract that previously established a supplemental production history.
Producers who did not enroll in Supplemental DMC in 2022 can do so now. Producers should complete their Supplemental DMC enrollment before enrolling in 2023 DMC.
Enrollment for the 2022 calendar year opened on Dec. 13, 2021 and closed March 25, 2022.
More Information
Dairy Margin Coverage
This DMC decision tool can be used to help you look at and think about what your opportunities are.
Note on Sequestration: DMC indemnity payments will be reduced by a certain percentage (5.7 percent for 2022; 5.7 percent for 2021; 5.9 percent for 2020; 6.2 percent for 2019) due to a sequester order required by Congress and issued pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985. FSA will reduce DMC indemnity payments by the applicable sequestration percentage before distribution to participating operations.
Enrollment, Production, and Payments Updates
Following the close of the 2023 enrollment period, DMC Enrollment, Production and Payment reports will be made available online. More information regarding posting dates and times will be will be provided soon.
FSA opened enrollment for both DMC (for calendar year 2023) and for Supplemental DMC on Oct. 17. The deadline to enroll is Dec. 9, 2022.
Enrollment for the 2022 calendar year opened on Dec. 13, 2021 and closed March 25, 2022.
Review Previous reports
Prices
Read the details on how the prices below are used in the DMC calculation.
A change to use premium and supreme alfalfa hay will be used in the feed cost calculation for DMC
Month | Corn ($/bu) | Premium Alfalfa Hay ($/ton) | Soybean Meal ($/ton) | All Milk ($/cwt) | Final Feed Costs for DMC($/cwt) | Milk Margin Above Feed Costs for DMC($/cwt) |
---|---|---|---|---|---|---|
January | 5.57 | 262.00 | 421.21 | 24.20 | 12.66 | 11.54 |
February | 6.10 | 266.00 | 480.96 | 24.70 | 13.72 | 10.98 |
March | 6.56 | 269.00 | 493.98 | 25.90 | 14.35 | 11.55 |
April | 7.08 | 271.00 | 476.70 | 27.10 | 14.81 | 12.29 |
May | 7.26 | 274.00 | 441.28 | 27.30 | 14.79 | 12.51 |
June | 7.37 | 277.00 | 445.93 | 26.90 | 14.98 | 11.92 |
July | 7.25 | 333.00 | 467.87 | 25.70 | 15.78 | 9.92 |
August | 7.24 | 343.00 | 510.90 | 24.30 | 16.22 | 8.08 |
September | 7.09 | 342.00 | 473.94 | 24.40 | 15.78 | 8.62 |
October | 6.50 | 348.00 | 468.68 | 25.90 | 15.19 | 10.71 |
November | 6.49 | 331.00 | 436.75 | 25.60 | 14.71 | 10.89 |
December |
Month | Corn ($/bu) | Premium Alfalfa Hay ($/ton) | Soybean Meal ($/ton) | All Milk ($/cwt) | Final Feed Costs for DMC($/cwt) | Milk Margin Above Feed Costs for DMC($/cwt) |
---|---|---|---|---|---|---|
January | 4.24 | 206.00 | 439.24 | 17.50 | 10.60 | 6.90 |
February | 4.75 | 211.00 | 427.28 | 17.10 | 11.13 | 5.97 |
March | 4.89 | 210.00 | 410.02 | 17.40 | 11.14 | 6.26 |
April | 5.31 | 211.00 | 413.36 | 18.40 | 11.63 | 6.77 |
May | 5.91 | 226.00 | 421.03 | 19.20 | 12.53 | 6.67 |
June | 6.00 | 230.00 | 378.18 | 18.40 | 12.37 | 6.03 |
July | 6.12 | 232.00 | 365.23 | 17.90 | 12.43 | 5.47 |
August | 6.32 | 238.00 | 358.21 | 17.70 | 12.67 | 5.03 |
September | 5.45 | 244.00 | 343.55 | 18.40 | 11.71 | 6.69 |
October | 5.02 | 247.00 | 325.43 | 19.70 | 11.16 | 8.54 |
November | 5.27 | 246.00 | 358.73 | 20.80 | 11.66 | 9.14 |
December | 5.47 | 253.00 | 399.53 | 21.80 | 12.27 | 9.53 |
Month | Corn ($/bu) | Premium Alfalfa Hay ($/ton) | Soybean Meal ($/ton) | All Milk ($/cwt) | Final Feed Costs for DMC($/cwt) | Milk Margin Above Feed Costs for DMC($/cwt) |
---|---|---|---|---|---|---|
January | 3.79 | 210.00 | 300.11 | 19.60 | 9.15 | 10.45 |
February | 3.78 | 210.00 | 295.28 | 18.90 | 9.10 | 9.80 |
March | 3.68 | 205.00 | 312.38 | 18.00 | 9.05 | 8.95 |
April | 3.29 | 209.00 | 295.39 | 14.40 | 8.56 | 5.84 |
May | 3.20 | 211.00 | 288.56 | 13.60 | 8.44 | 5.16 |
June | 3.16 | 201.00 | 288.66 | 18.10 | 8.27 | 9.83 |
July | 3.21 | 192.00 | 291.25 | 20.50 | 8.21 | 12.29 |
August | 3.12 | 192.00 | 290.18 | 18.80 | 8.11 | 10.69 |
September | 3.41 | 192.00 | 319.99 | 17.90 | 8.64 | 9.26 |
October | 3.61 | 194.00 | 367.11 | 20.20 | 9.23 | 10.97 |
November | 3.79 | 200.00 | 387.83 | 21.30 | 9.66 | 11.64 |
December | 3.97 | 203.00 | 396.68 | 18.50 | 9.96 | 8.54 |
Month | Corn ($/bu) | Blended Alfalfa Hay ($/ton) | Soybean Meal ($/ton) | All Milk ($/cwt) | Final Feed Costs for DMC($/cwt) | Milk Margin Above Feed Costs for DMC($/cwt) |
---|---|---|---|---|---|---|
January | 3.56 | 201.00 | 314.92 | 16.60 | 8.89 | 7.71 |
February | 3.60 | 202.50 | 306.83 | 16.80 | 8.89 | 7.91 |
March | 3.61 | 198.50 | 306.38 | 17.50 | 8.84 | 8.66 |
April | 3.52 | 209.00 | 304.26 | 17.70 | 8.88 | 8.82 |
May | 3.63 | 213.00 | 297.52 | 18.00 | 9.00 | 9.00 |
June | 3.98 | 205.00 | 324.75 | 18.10 | 9.47 | 8.63 |
July | 4.16 | 196.00 | 310.77 | 18.70 | 9.43 | 9.27 |
August | 3.93 | 193.50 | 296.42 | 18.90 | 9.05 | 9.85 |
September | 3.80 | 192.50 | 295.57 | 19.30 | 8.89 | 10.41 |
October | 3.84 | 192.00 | 309.48 | 19.90 | 9.02 | 10.88 |
November | 3.68 | 191.00 | 303.13 | 21.00 | 8.79 | 12.21 |
December | 3.71 | 187.50 | 299.59 | 20.70 | 8.75 | 11.95 |