In a notice to USDA Farm Service Agency (FSA) state and county offices, Jan. 22, John Berge, acting deputy administrator for farm programs, said Dairy Margin Coverage (DMC) program software updates will be announced tentatively in February or March. The new software is necessary to make milk production history modifications for the 2024 DMC coverage period.
Signed into law in November, the “Further Continuing Appropriations and Other Extensions Act, 2024” extended the DMC program through the end of 2024. As part of that extension, it also incorporated milk production history enrolled in the Supplemental DMC program.
For 2023 and prior year DMC production history changes, county FSA offices may continue to approve and access the DMC software to process these production history changes that occurred prior to Jan. 1, 2024. However, combining the two under the 2024 DMC program required software updates. Until the 2024 coverage election period starts, production history modifications (transfers, successions in interest and dissolutions) that occurred after Dec. 31, 2023, cannot be loaded in the DMC software, delaying enrollment.
While there has been some urgency expressed regarding a 2024 DMC enrollment period, there is still time, and once DMC sign-up opens for 2024, producers will be able to obtain coverage retroactively for the full year.
The December 2023 margin and potential indemnity payments are not calculated and announced until Jan. 31. Looking ahead to 2024, the January 2024 DMC margin will not be calculated until Feb. 29.
As of Jan. 19, the DMC decision tool forecasts a December DMC margin of $8.88 per hundredweight (cwt), triggering indemnity payments for producers enrolled at the $9 and $9.50 per cwt coverage levels.
Early 2024 decision tool projections estimate monthly DMC margins for the first quarter of the year will trigger Tier I indemnity payments: January – $8.73 per cwt, February – $8.98 per cwt and March – $9.41 per cwt.
Watch for a notice from your FSA office, and follow the Progressive Dairy website for 2024 DMC enrollment information when it becomes available.
