It provides financial assistance to dairy farmers when the margin between the national milk price and average feed costs falls below a predetermined level selected by participants.
Dairy farmers can choose from various levels of coverage, though all participants must pay a $100 administrative fee. However, this fee is waived for those who qualify as limited resource, beginning, socially disadvantaged, or military veteran producers.
The program calculates payments using updated feed and premium hay prices, ensuring a more accurate reflection of dairy farm expenses.
Producers interested in securing coverage should visit the DMC webpage or contact their local USDA Service Center for further details. With unpredictable market conditions, DMC remains an essential risk management tool for safeguarding dairy farm income.