Dairy Margin Coverage Extended Through 2031

USDA to Survey Dairy Plant Costs Every Two Years

The National Milk Producers Federation (NMPF) praised the House Agriculture Committee’s reconciliation proposal for including key provisions that support the agricultural sector and offer stability to farmers.

“We commend Chairman GT Thompson and committee members for advancing important investments that will help support and create opportunities for dairy,” said Gregg Doud, president and CEO of NMPF. “We will work with lawmakers to advance these provisions through Congress, knowing that dairy is well-served by what the House Agriculture Committee is approving.”

A major highlight for NMPF is the extension of the Dairy Margin Coverage (DMC) program through 2031, ensuring long-term risk management support for dairy producers.

The bill also updates the DMC production history calculation, allowing farmers to use their highest production year from 2021, 2022, or 2023—an adjustment that better reflects current production trends.

Additionally, the legislation allocates funding for mandatory USDA dairy processing plant cost surveys every two years. These surveys will provide critical data to guide future discussions on make allowances.

The proposal also includes sustained funding for trade promotion, conservation efforts, agricultural research, and animal health initiatives.

The bill is expected to pass the House Agriculture Committee and will later be incorporated into a broader budget reconciliation package.

This larger package includes tax policy extensions, such as the permanent adoption of the Section 199A tax deduction. This provision enables dairy cooperatives to either return the deduction to their farmer members or reinvest it.

“Whether it’s risk management or tax issues, the stakes are enormous for Congress to get the policy right in this legislation,” Doud emphasized.