Sign-up is open for dairy farmers to enroll in the Dairy Margin Coverage (DMC) for 2023 with your local Farm Service Agency (FSA) office. Enrollment is open until Dec. 9, 2022. Dairy farmers who signed up for the five-year commitment previously and locked in their coverage still need to pay the $100 administrative fee to stay enrolled in the program.
Famers who chose Supplemental DMC coverage for 2022 are automatically added to their 2023 coverage. Farmers who did not enroll in supplemental coverage can do so now for 2023 if they have less than 5 million pounds of established production. Dairy farmers who previously selected 2022 Supplemental DMC can update and increase their production levels to 2019 actual milk marketings.
Depending on farm size and coverage level, your farm could have up to 95 percent of your annual historic protection with DMC. With many farms selecting Tier 1 (up to 5,000,000 annual pounds) coverage at the $9.50/cwt margin, the DMC program can be an effective talking point when discussing next year’s cash flows and how risk management tools can reduce the financial impact of unexpected milk prices or feed costs. The Programs on Dairy Markets and Policy’s (DMaP) Dairy Margin Coverage Tool enables you to create producer-specific graphs showing your coverage level and projected monthly price triggers. When discussing your 2023 cash flow sensitivity, it is also important to consider your participation in other risk management programs through your crop insurance agent, such as Dairy Revenue Protection (DRP) or Livestock Gross Margin for Dairy Cattle Insurance (LGM-Dairy).
Source : umn.edu