DMC program participation is updated weekly, providing information on the number of operations enrolled, milk production history covered and year-to-date indemnity payments.
As of July 22, 13,240 dairy operations had signed up for the new program, about 49% of 26,832 dairy operations with established milk production history and about 35% of all dairy operations commercially licensed to sell milk.
DMC provides coverage retroactive to Jan. 1, 2019, with applicable payments distributed to eligible dairy farmers shortly after they enroll. As of July 22, the USDA’s FSA had begun paying approximately $145 million to producers for milk production insured from January through May 2019. (Read: May margin adds to retroactive DMC payments.) The June 2019 DMC margin and indemnity payment will be announced on July 31.
Wisconsin led all states in terms of both DMC enrollment and indemnity payments, with 4,121 dairy farmers enrolled as of July 22 and receiving $41 million in indemnity payments. Among other major dairy states, Minnesota (1,511 operations enrolled) and New York (1,397) each received $14 million, with 1,137 producers in Pennsylvania sharing about $11 million. In California, 333 dairy operations received a total of $7.2 million.
Authorized by the 2018 Farm Bill, DMC replaces the Margin Protection Program for Dairy (MPP-Dairy). The program offers protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.
Sign-up for the program began June 17 and closes Sept. 20, 2019, at local USDA FSA offices. Producers may enroll for one year (2019) or for the full five-year length (2019-2023) of the program at a reduced premium rate.
DMC calculator available
A reminder as you head to your FSA office to sign up for DMC before Sept. 20: The USDA has made a new web-based tool to help dairy producers evaluate coverage levels through the DMC program by combining operation data and other key variables to calculate coverage needs based on price projections. The decision tool assists producers with calculating total premiums costs and administrative fees associated with participation in DMC. It also forecasts payments that will be made during the coverage year.
Dairy producers can choose coverage levels from $4 up to $9.50 at the time of sign-up. Preliminary data showed more than 98 percent of the producers currently enrolled have elected $9.50 coverage on up to 95 percent of their production history.
For additional information, contact your local USDA FSA service center. 
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Dave Natzke
- Editor
- Progressive Dairy
- Email Dave Natzke
