The January Dairy Margin Coverage (DMC) revenue above feed costs was computed at $8.48/cwt, resulting in indemnity payments of $761.56 per million pounds enrolled in the 2024 program. In 2023, eligible producers received indemnity payments for 11 out of 12 months, with an average monthly payout of $2.80 per cwt. The DMC program was approved in the 2018 farm bill to provide farmers with protection when the gap between the all-milk price and the average feed price falls below the producer-selected margin threshold. The FSA Administrator, Zach Ducheneaux, emphasized that DMC is a critical risk management instrument for dairy enterprises to financially withstand the multiple uncertainties that negatively effect milk market pricing. Gregg Doud, president and CEO of the National Milk Producers Federation (NMPF), invites every dairy farmer to seriously consider signing up for DMC, noting the program’s permanent inclusion of updated production records as well as current low producer margins.
