The Dairy Margin Coverage Program sign up period is underway. Bill Northey, Undersecretary for Farm Production and Conservation with the U.S. Department of Agriculture, says the new program was based off the Margin Protection Program in previous farm bills. However, he says the DMC is much better than the previous program.
“The improvements to the program included a higher margin coverage, a $9.50 margin coverage on a producers first 5 million pounds of production.” Larger producers can get insured on their first 5 million pounds of production.
Northey says sign up is going well and participation by producers seems to be good. “So far we have about 5,300 producers who have signed up for the program. They have until September 20 to sign up, but we are off to a good start.” Northey says one reason early sign up may be good is because there are some credits that can carry over from the old MPP program to the new program.
Half the number of producers already signed up have selected the five-year coverage option, which means they’ll pay lower premiums for the protection.
“If they sign up for the 5 year option, they can get a 25% discount on their premium.” For more information, producers should contact their local USDA county office.