Under the Dairy Margin Coverage program, dairy producers who purchased the appropriate level of coverage had their first payment come up as the March 2020 income over feed cost margin went to $9.15 per hundredweight (cwt.).


According to the U.S. Department of Agriculture, current projections indicate that a DMC payment is likely to trigger every month for the remainder of 2020, a different expectation from last July when some market models had forecast no program payments for 18 months.


“This payment comes at a critical time for many dairy producers,” said FSA Administrator Richard Fordyce in a news release. “It is the first triggered DMC payment for 2020, and the first payment to dairy producers in seven months.”


According to the Farm Service Agency, the DMC is a voluntary risk management program that 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 authorized by the 2018 Farm Bill.


In July, an open sign up for 2021 should be coming through local FSA offices for dairy producers despite 2020 DMC coverage being closed.


For the 2020 calendar year, over 13,000 operations enrolled in the program.


At this time, USDA Service Centers and FSA county offices, are open by phone only.


Necessary field work will continue with appropriate social distancing.


To conduct business with the FSA, Natural Resources Conservation Service or any other service center agency, visitors are required to call their service center to schedule a phone appointment.


For more information, visit farmers.gov/coronavirus.


To contact the writer, email vmarshall@dodgeglobe.com.