Dairy producers will be capable to enroll for 2024 Dairy Margin Protection, an vital security web program supplied by the U.S. Division of Agriculture that gives producers with worth help to assist offset milk and feed worth variations. This yr’s DMC signup begins Feb. 28 and ends April 29. For individuals who join 2024 DMC protection, funds could start as quickly as March 4 for any funds that triggered in January.

USDA’s Farm Service Company has revised the rules for DMC to permit eligible dairy operations to make a one-time adjustment to established manufacturing historical past. This adjustment shall be achieved by combining beforehand established supplemental manufacturing historical past with DMC manufacturing historical past for these dairy operations that participated in Supplemental Dairy Margin Protection throughout a previous protection yr. DMC has additionally been licensed by calendar yr 2024. Congress handed a 2018 Farm Invoice extension requiring these regulatory modifications to this system.

“FSA is asserting the join 2024 Dairy Margin Protection. We encourage producers to enroll on this vital security web program. In reviewing 2023 margins and the greater than $1.2 billion in Dairy Margin Protection funds issued to producers, Dairy Margin Protection is confirmed to be a program to scale back danger for our dairy producers,” stated FSA Administrator Zach Ducheneaux. “If 2023 taught us something, it’s that we actually don’t know what is going to occur out there in any given yr. Producers who took benefit of this inexpensive danger administration software for the 2023 program yr, had been in a position to mitigate some monetary impacts on their operations. At $0.15 per hundredweight for $9.50 protection, danger safety by Dairy Margin Protection is a comparatively cheap funding in a real sense of safety and peace of thoughts.”

DMC is a voluntary danger administration program that gives safety to dairy producers when the distinction between the all-milk worth and the common feed worth (the margin) falls beneath a sure greenback quantity chosen by the producer.  In 2023, Dairy Margin Protection funds triggered in 11 months together with two months, June and July, the place the margin fell beneath the catastrophic stage of $4 per hundredweight, a primary for Dairy Margin Protection or its predecessor Margin Safety Program.

2024 DMC Protection and Premium Charges

FSA has revised DMC rules to increase protection for calendar yr 2024, which is retroactive to Jan. 1, 2024, and to offer an adjustment to the manufacturing historical past for dairy operations with lower than 5 million kilos of manufacturing. In earlier years, smaller dairy operations might set up a supplemental manufacturing historical past and obtain Supplemental Dairy Margin Protection. For 2024, dairy producers can set up one adjusted base manufacturing historical past by DMC for every taking part dairy operation to higher mirror the operation’s present manufacturing.

For 2024 DMC enrollment, dairy operations that established supplemental manufacturing historical past by Supplemental Dairy Margin Protection for protection years 2021 by 2023, will mix the supplemental manufacturing historical past with established manufacturing historical past for one adjusted base manufacturing historical past.

For dairy operations enrolled in 2023 DMC underneath a multi-year lock-in contract, lock-in eligibility shall be prolonged till Dec. 31, 2024. As well as, dairy operations enrolled in multi-year lock-in contracts are eligible for the discounted DMC premium fee in the course of the 2024 protection yr. To substantiate 2024 DMC lock-in protection or choose out in favor of an annual contract for 2024, dairy operations having lock-in contracts should enroll in the course of the 2024 DMC enrollment interval.

DMC gives completely different ranges of protection, even an choice that’s free to producers, minus a $100 administrative price. The executive price is waived for dairy producers who’re thought of restricted useful resource, starting, socially deprived or a navy veteran. To find out the suitable stage of DMC protection for a selected dairy operation, producers can use the on-line dairy resolution software.

DMC Funds

DMC funds are calculated utilizing up to date feed and premium hay prices, making this system extra reflective of precise dairy producer bills.  These up to date feed calculations use one hundred pc premium alfalfa hay.

Extra Info

USDA additionally gives different danger administration instruments for dairy producers, together with the Dairy Income Safety plan that protects in opposition to a decline in milk income (yield and worth) and the Livestock Gross Margin plan, which gives safety in opposition to the lack of the market worth of milk minus the feed prices. Each DRP and LGM livestock insurance coverage insurance policies are supplied by the Threat Administration Company. Producers ought to contact their native crop insurance coverage agent for extra data.

For extra data on DMC, go to the DMC webpage or contact an area USDA Service Middle.