The USDA’s Farm Service Agency says safety-net signup for 2021 Dairy Margin Coverage begins on October 12th and runs through December 11th of this year.
DMC has already triggered payments for two months for those producers who signed up for 2020 coverage.
“If we’ve learned anything in the past six months, it’s to expect the unexpected,” says FSA Administrator Richard Fordyce.
“Nobody would have imagined the significant impact that current, unforeseen circumstances have had on an already fragile dairy market.”
Fordyce says it’s during unprecedented times like these that the importance of offering agricultural producers support through the delivery of farm bill safety-net programs like DMC becomes readily apparent.
As of June 15th, FSA has issued more than $100 million in much-needed program benefits to dairy producers who purchased DMC coverage for 2020.
The DMC offers 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.
More than 13,000 operations enrolled in the program for the 2020 calendar year.