By Scout Nelson
The U.S. Department of Agriculture (USDA) is encouraging dairy farmers to enroll in the Dairy Margin Coverage (DMC) program for 2025. This safety net program helps protect producers from fluctuations between milk prices and the cost of feed. Enrollment opened on January 29, 2025, and will close on March 31, 2025.
DMC provides financial support when the difference between the national milk price and average feed costs, known as the margin, drops below a certain level. Farmers can choose different coverage levels based on their needs. Coverage is available for as low as $0.15 per hundredweight at the $9.50 margin level, offering a cost-effective option for managing market risks.
The 2025 program continues under provisions extended by the American Relief Act, 2025, which upholds the terms of the 2018 Farm Bill. This ensures continuity of the program for dairy producers across the country.
DMC also includes updated feed cost calculations that reflect real expenses more accurately, now accounting for 100% premium alfalfa hay. These improvements make the program more responsive to current economic conditions in the dairy industry.
An administrative fee of $100 applies to most producers, but this fee is waived for those who qualify as limited resource, beginning, socially disadvantaged, or military veteran farmers.
Farmers are encouraged to sign up before the deadline to secure this valuable risk protection. For more details, visit the official DMC webpage or reach out to a local USDA Service Center.
Photo Credit: usda
Categories: South Dakota, Livestock, Dairy Cattle