By Scout Nelson
The U.S. Department of Agriculture (USDA) encourages dairy producers in South Dakota to enroll in Dairy Margin Coverage (DMC), an important safety net program that helps offset differences between milk and feed prices. This year’s signup began on January 12, 2026, and the enrollment deadline is February 26, 2026.
“We encourage producers to join dairy operations in South Dakota that have already signed up for this important safety net program in advance of the deadline,” said USDA Farm Service Agency (FSA) State Executive Director Roger Chase. “At $0.15 per hundredweight for $9.50 coverage, risk protection through Dairy Margin Coverage is a cost-effective tool to manage risk and provide added financial security for your operations.”
The One Big Beautiful Bill Act (OBBBA), signed on July 4, 2025, reauthorizes DMC for 2026 through 2031 and introduces several program improvements. These include establishing a new production history for all dairy operations and increasing Tier 1 coverage from five million pounds to six million pounds.
Existing dairy operations that began marketing milk on or before January 1, 2023, use the highest milk marketings from 2021, 2022, or 2023 to establish production history. New dairy operations starting after January 1, 2023, use their first year of monthly milk marketings, even if partial. Milk marketing statements or production evidence are required to confirm production history.
Dairy operations can also lock in coverage levels for six years (2026–2031) with a 25% discounted premium. DMC provides different coverage options, including a free level with only a $100 annual administrative fee. Producers can use the USDA online dairy decision tool to select the appropriate coverage for their operations.
Producers interested in DMC can visit the USDA DMC webpage or contact their, local USDA Service Center for assistance. The program helps safeguard dairy operations, offering financial stability and risk protection in an unpredictable market.
Photo Credit: usda-farm-service-agency
Categories: South Dakota, Government & Policy