Eligible dairy producers who purchase the appropriate coverage level under the Dairy Margin Coverage program will be getting a payment for January. The Farm Service Agency says the January 2019 income over feed cost margin was $7.99 a hundredweight, triggering the first payment for producers who buy the correct level of coverage. The Dairy Margin Coverage program will replace the Margin Protection Program. DMC is a voluntary risk management program for dairy producers authorized by the 2018 Farm Bill. Ag Secretary Sonny Perdue announced that the sign-up period for DMC will open by mid-June.
If producers select a DMC coverage level between $8 and $9.50, they would be eligible for a payment for January 2019. The Hagstrom Report says the announcement appeared to be an attempt to encourage dairy producers to sign up for the program. House Ag Chair Collin Peterson says he’s afraid that producers were so disappointed with the MPP that they won’t sign up for the new and improved program. FSA Chief Richard Fordyce says Congress created the DMC program to provide the important financial safety net that dairy producers need, helping them weather shifting milk and feed prices.