IARN — The Department of Agriculture’s Farm Service Agency (FSA) announced this week that the March triggered the first payment to dairy farmers enrolled in the Dairy Margin Coverage (DMC) program. The March income over feed cost margin was $9.15 per hundredweight. 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. FSA Director Richard Fordyce says the payment “comes at a critical time for many dairy producers,” noting it is the first payment to dairy producers in seven months.
Authorized by the 2018 Farm Bill, 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 falls below a certain dollar amount selected by the producer. Although DMC enrollment for 2020 coverage has closed, dairy producers should look for FSA to open sign up for 2021 coverage in July.
Story courtesy of the Iowa Agribusiness Radio Network.