2025 Dairy Margin Coverage Deadline Approaches

USDA Urges Dairy Producers to Enroll Before March 31 Cutoff

The U.S. Department of Agriculture (USDA) is emphasizing the importance of the Dairy Margin Coverage (DMC) program for dairy producers, as the deadline for 2025 enrollment is fast approaching on March 31.

The program, which began on January 29, is a critical safety net designed to mitigate the financial risks associated with fluctuations in milk and feed prices. 

According to Brenda Archuleta, USDA Farm Service Agency Deputy State Executive Director in New Mexico, 33 dairy operations have already enrolled. She highlights, "At $0.15 per hundredweight for $9.50 coverage, risk protection through Dairy Margin Coverage is a cost-effective tool to manage risk and provide security for your operations.”

The DMC program was extended under the American Relief Act, 2025, continuing the provisions set by the 2018 Farm Bill. It offers financial protection to dairy operations by compensating producers when the margin between the national milk price and average feed costs drops below a specified level, chosen by the participants.

Dairy producers can choose from various coverage levels, with a standard $100 administrative fee waived for those who are limited resource, beginning, socially disadvantaged, or military veterans.

The program’s calculations have been updated to include 100% premium alfalfa hay in feed costs, reflecting more accurately the actual expenses dairy producers face.

For further details on the DMC and to enroll, producers are encouraged to visit the DMC webpage or contact their local USDA Service Center. This proactive step can significantly aid in managing the inherent risks of dairy farming, providing a more stable economic environment for producers.