Dairy Margin Coverage (DMC) Program

Dairy Margin Coverage Program

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).

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.

Enrollment for the 2021 DMC program year starts Tuesday, Oct. 13, 2020 and runs through Dec. 11. 2020

Decision Tool – The current version of the DMC decision tool has been enhanced and was developed in partnership with in cooperation 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.

The weekly Dairy Margin Coverage (DMC) Enrollment, Production and Payment report will be updated every Monday at 2:00 PM Eastern.

About the Program


Program at a Glance

The program provides:

  • Catastrophic coverage, at no cost to the producer, other than an annual $100 administrative fee that is waived in some cases; and
  • Various levels of buy-up coverage.
  • Dairy Margin Coverage Fact Sheet

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 2020 DMC program year, payments have triggered for March, April, May and September.

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:

  • Produce and commercially market milk from cows located in the United States; and
  • Provide proof of milk production at the time of registration.

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:

  • Select a coverage level ranging from $4.00 to $9.50 per cwt, in $0.50 increments
  • Select a coverage percentage of the dairy operation’s production history ranging from 5 percent to 95 percent, in 5 percent increments

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 opens enrollment for DMC on Oct. 13 for calendar year 2021. The deadline to enroll for 2021 calendar year coverage is Dec. 11, 2020.

Enrollment for calendar year 2019 DMC coverage opened on June 17, 2019 and closed on Sept. 27, 2019. Enrollment for the 2020 calendar year coverage opened on Oct 7, 2019 and closed on Dec. 20, 2020.


More Information

Dairy Margin Coverage

Dairy Margin Coverage Video – informational video on use of the dairy decision tool.

This DMC decision tool can be used to help you look at and think about what your opportunities are.

Note on Sequestration: Payments under DMC may be reduced by a certain percentage (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. Should a payment reduction be necessary, FSA will reduce the payment by the required amount.


Enrollment, Production, and Payments Updates

Enrollment, Production and Payment Updates – Weekly Report

FSA opened enrollment for DMC on Oct. 7 for calendar year 2020. The deadline to enroll for 2020 calendar year coverage is Dec. 20. 2019. Signup for calendar year 2019 DMC coverage opened on June 17, 2019 and closed on Sept. 27, 2019. Weekly DMC program enrollment, production and payment updates will be posted every Monday at 2:00 PM Eastern.

Review Previous reports

2021 Dairy Margin Coverage Weekly Reports
2021 Dairy Margin Coverage Weekly Report for November 16, 2020 (PDF, 109KB) 2021 Dairy Margin Coverage Weekly Report for November 9, 2020 (PDF, 109KB)
2021 Dairy Margin Coverage Weekly Report for November 2, 2020 (PDF, 109KB) 2021 Dairy Margin Coverage Weekly Report for October 26, 2020 (PDF, 108KB)
2021 Dairy Margin Coverage Weekly Report for October 19, 2020 (PDF, 108KB)
2020 Dairy Margin Coverage Weekly Reports
2020 Dairy Margin Coverage Weekly Report for November 16, 2020 (PDF, 109KB) 2020 Dairy Margin Coverage Weekly Report for November 9, 2020 (PDF, 109KB)
2020 Dairy Margin Coverage Weekly Report for November 2, 2020 (PDF, 109KB) 2020 Dairy Margin Coverage Weekly Report for October 26, 2020 (PDF, 109KB)
2020 Dairy Margin Coverage Weekly Report for October 19, 2020 (PDF, 109KB) 2020 Dairy Margin Coverage Weekly Report for October 12, 2020 (PDF, 109KB)
2020 Dairy Margin Coverage Weekly Report for October 5, 2020 (PDF, 109KB) 2020 Dairy Margin Coverage Weekly Report for September 28, 2020 (PDF, 110KB)
2020 Dairy Margin Coverage Weekly Report for September 21, 2020 (PDF, 109KB) 2020 Dairy Margin Coverage Weekly Report for September 14, 2020 (PDF, 450KB)
2020 Dairy Margin Coverage Weekly Report for September 8, 2020 (PDF, 109KB) 2020 Dairy Margin Coverage Weekly Report for August 31, 2020 (PDF, 109KB)
2020 Dairy Margin Coverage Weekly Report for August 24, 2020 (PDF, 109KB) 2020 Dairy Margin Coverage Weekly Report for August 17, 2020 (PDF, 109KB)
2020 Dairy Margin Coverage Weekly Report for July 27, 2020 (PDF, 109KB) 2020 Dairy Margin Coverage Weekly Report for July 13, 2020 (PDF, 109KB)
2020 Dairy Margin Coverage Weekly Report for June 22, 2020 (PDF, 109KB) 2020 Dairy Margin Coverage Weekly Report for June 15, 2020 (PDF, 109KB)
2020 Dairy Margin Coverage Weekly Report for June 8, 2020 (PDF, 110KB) 2020 Dairy Margin Coverage Weekly Report for June 1, 2020 (PDF, 112KB)
2020 Dairy Margin Coverage Weekly Report for May 18, 2020 (PDF, 108KB) 2020 Dairy Margin Coverage Weekly Report for April 20, 2020 (PDF, 107KB)
2020 Dairy Margin Coverage Weekly Report for April 13, 2020 (PDF, 108KB) 2020 Dairy Margin Coverage Weekly Report for April 6, 2020 (PDF, 108KB)
2020 Dairy Margin Coverage Weekly Report for March 30, 2020 (PDF, 108KB) 2020 Dairy Margin Coverage Weekly Report for March 23, 2020 (PDF, 108KB)
2020 Dairy Margin Coverage Weekly Report for March 17, 2020 (PDF, 110KB) 2020 Dairy Margin Coverage Weekly Report for March 9, 2020 (PDF, 110KB)
2020 Dairy Margin Coverage Weekly Report for March 2, 2020 (PDF, 110KB) 2020 Dairy Margin Coverage Weekly Report for February 24, 2020 (PDF, 110KB)
2020 Dairy Margin Coverage Weekly Report for February 18, 2020 (PDF, 111KB) 2020 Dairy Margin Coverage Weekly Report for February 10, 2020 (PDF, 110KB)
2020 Dairy Margin Coverage Weekly Report for January 27, 2020 (PDF, 105KB) 2020 Dairy Margin Coverage Weekly Report for January 21, 2020 (PDF, 105KB)
2020 Dairy Margin Coverage Weekly Report for January 14, 2020 (PDF, 105KB) 2020 Dairy Margin Coverage Weekly Report for January 6, 2020 (PDF, 370KB)
2020 Dairy Margin Coverage Weekly Report for December 16, 2019 (PDF, 105KB) 2020 Dairy Margin Coverage Weekly Report for December 9, 2019 (PDF, 105KB)
2020 Dairy Margin Coverage Weekly Report for December 2, 2019 (PDF, 105KB) 2020 Dairy Margin Coverage Weekly Report for November 25, 2019 (PDF, 106KB)
2020 Dairy Margin Coverage Weekly Report for November 18, 2019 (PDF, 369KB) 2020 Dairy Margin Coverage Weekly Report for November 12, 2019 (PDF, 369KB)
2020 Dairy Margin Coverage Weekly Report for November 4, 2019 (PDF, 104KB) 2020 Dairy Margin Coverage Weekly Report for October 28, 2019 (PDF, 104KB)
2019 Dairy Margin Coverage Weekly Reports
2019 Dairy Margin Coverage Weekly Report for November 16, 2020 (PDF, 109KB) 2019 Dairy Margin Coverage Weekly Report for November 9, 2020 (PDF, 109KB)
2019 Dairy Margin Coverage Weekly Report for November 2, 2020 (PDF, 109KB) 2019 Dairy Margin Coverage Weekly Report for October 26, 2020 (PDF, 109KB)
2019 Dairy Margin Coverage Weekly Report for October 19, 2020 (PDF, 109KB) 2019 Dairy Margin Coverage Weekly Report for October 12, 2020 (PDF, 109KB)
2019 Dairy Margin Coverage Weekly Report for October 5, 2020 (PDF, 109KB) 2019 Dairy Margin Coverage Weekly Report for September 28, 2020 (PDF, 110KB)
2019 Dairy Margin Coverage Weekly Report for September 21, 2020 (PDF, 110KB) 2019 Dairy Margin Coverage Weekly Report for September 14, 2020 (PDF, 447KB)
2019 Dairy Margin Coverage Weekly Report for September 8, 2020 (PDF, 109KB) 2019 Dairy Margin Coverage Weekly Report for August 31, 2020 (PDF, 109KB)
2019 Dairy Margin Coverage Weekly Report for August 24, 2020 (PDF, 109KB) 2019 Dairy Margin Coverage Weekly Report for August 17, 2020 (PDF, 110KB)
2019 Dairy Margin Coverage Weekly Report for July 27, 2020 (PDF, 110KB) 2019 Dairy Margin Coverage Weekly Report for July 13, 2020 (PDF, 110KB)
2019 Dairy Margin Coverage Weekly Report for June 22, 2020 (PDF, 110KB) 2019 Dairy Margin Coverage Weekly Report for June 15, 2020 (PDF, 110KB)
2019 Dairy Margin Coverage Weekly Report for June 8, 2020 (PDF, 108KB) 2019 Dairy Margin Coverage Weekly Report for June 1, 2020 (PDF, 109KB)
2019 Dairy Margin Coverage Weekly Report for May, 18 2020 (PDF, 109KB) 2019 Dairy Margin Coverage Weekly Report for April 20, 2020 (PDF, 109KB)
2019 Dairy Margin Coverage Weekly Report for April 13, 2020 (PDF, 109KB) 2019 Dairy Margin Coverage Weekly Report for April 6, 2020 (PDF, 109KB)
2019 Dairy Margin Coverage Weekly Report for March 30, 2020 (PDF, 109KB) 2019 Dairy Margin Coverage Weekly Report for March 23, 2020 (PDF, 108KB)
2019 Dairy Margin Coverage Weekly Report for March 17, 2020 (PDF, 110KB) 2019 Dairy Margin Coverage Weekly Report for March 9, 2020 (PDF, 110KB)
2019 Dairy Margin Coverage Weekly Report for March 2, 2020 (PDF, 109KB) 2019 Dairy Margin Coverage Weekly Report for February 24, 2020 (PDF, 110KB)
2019 Dairy Margin Coverage Weekly Report for February 18, 2020 (PDF, 110KB) 2019 Dairy Margin Coverage Weekly Report for February 10, 2020 (PDF, 111KB)
2019 Dairy Margin Coverage Weekly Report for January 27, 2020 (PDF, 106KB) 2019 Dairy Margin Coverage Weekly Report for January 21, 2020 (PDF, 106KB)
2019 Dairy Margin Coverage Weekly Report for January 14, 2020 (PDF, 104KB) 2019 Dairy Margin Coverage Weekly Report for January 6, 2020 (PDF, 372KB)
2019 Dairy Margin Coverage Weekly Report for December 16, 2019 (PDF, 106KB) 2019 Dairy Margin Coverage Weekly Report for December 9, 2019 (PDF, 106KB)
2019 Dairy Margin Coverage Weekly Report for December 2, 2019 (PDF, 106KB) 2019 Dairy Margin Coverage Weekly Report for November 25, 2019 (PDF, 105KB)
2019 Dairy Margin Coverage Weekly Report for November 18, 2019 (PDF, 376KB) 2019 Dairy Margin Coverage Weekly Report for November 12, 2019 (PDF, 372KB)
2019 Dairy Margin Coverage Weekly Report for November 4, 2019 (PDF, 106KB) 2019 Dairy Margin Coverage Weekly Report for October 28, 2019 (PDF, 106KB)
2019 Dairy Margin Coverage Weekly Report for October 21, 2019 (PDF, 106KB) 2019 Dairy Margin Coverage Weekly Report for October 15, 2019 (PDF, 74KB)
2019 Dairy Margin Coverage Weekly Report for October 7, 2019 (PDF, 102KB) 2019 Dairy Margin Coverage Weekly Report for September 30, 2019 (PDF, 138KB)
2019 Dairy Margin Coverage Weekly Report for September 23, 2019 (PDF, 102KB) 2019 Dairy Margin Coverage Weekly Report for September 16, 2019 (PDF, 164KB)
2019 Dairy Margin Coverage Weekly Report for September 9, 2019 (PDF, 74KB) 2019 Dairy Margin Coverage Weekly Report for September 2, 2019 (PDF, 74KB)
2019 Dairy Margin Coverage Weekly Report for August 25, 2019 (PDF, 74KB) 2019 Dairy Margin Coverage Weekly Report for August 19, 2019 (PDF, 74KB)
2019 Dairy Margin Coverage Weekly Report for August 11, 2019 (PDF, 76KB) 2019 Dairy Margin Coverage Weekly Report for August 5, 2019 (PDF, 76KB)
2019 Dairy Margin Coverage Weekly Report for July 29, 2019 (PDF, 76KB) 2019 Dairy Margin Coverage Weekly Report for July 22, 2019 (PDF, 81KB)

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

Show prices for the year:
Show Me
MonthCorn ($/bu)Blended Alfalfa Hay ($/ton)Soybean Meal ($/ton)All Milk ($/cwt)Final Feed Costs for DMC($/cwt)Milk Margin Above Feed Costs for DMC($/cwt)
January3.79190.50300.1119.608.8810.72
February3.78190.50295.2818.908.8410.06
March3.68190.00312.3818.008.859.15
April3.29195.00295.3914.408.376.03
May3.20195.00288.5613.608.235.37
June3.16190.00288.6618.108.119.99
July3.21183.00291.2520.508.0912.41
August3.12182.00290.1818.807.9710.83
September3.41181.50319.9917.908.509.40
October
November
December
MonthCorn ($/bu)Blended Alfalfa Hay ($/ton)Soybean Meal ($/ton)All Milk ($/cwt)Final Feed Costs for DMC($/cwt)Milk Margin Above Feed Costs for DMC($/cwt)
January3.56201.00314.9216.608.897.71
February3.60202.50306.8316.808.897.91
March3.61198.50306.3817.508.848.66
April3.52209.00304.2617.708.888.82
May3.63213.00297.5218.009.009.00
June3.98205.00324.7518.109.478.63
July4.16196.00310.7718.709.439.27
August3.93193.50296.4218.909.059.85
September3.80192.50295.5719.308.8910.41
October3.84192.00309.4819.909.0210.88
November3.68191.00303.1321.008.7912.21
December3.71187.50299.5920.708.7511.95

Sources:

Corn, Premium and Supreme Alfalfa hay and All-milk full month prices (not preliminary) can be found in the National Agricultural Statistics Service Agricultural Prices monthly publication.

Soybean Meal prices can be found in the Agricultural Marketing Service daily Central Illinois Soybean Processor report. (Go to the 48 percent Soybean Meal R monthly price at the bottom of the report).