California Ag Network

Tag: Dairy Margin Coverage

  • At Farm Bureau Convention in California, Secretary Rollins Announces Dairy Margin Coverage Expansion and Section 32 Purchases of Specialty Crops

    This week at the 107th American Farm Bureau Federation Convention in Anaheim, CA, U.S. Secretary of Agriculture Brooke L. Rollins announced expanded enrollment for 2026 Dairy Margin Coverage (DMC) program and new Section 32 commodity purchases that will result in more healthy, U.S. grown food in the hands of Americans. Following the convention, Secretary Rollins also met with specialty crop producers at a local strawberry farm to discuss workforce needs and the Trump Administration’s recent wins related to significantly cutting the cost of H-2A labor for California farmers.

    Secretary Rollins and former California Ag Secretary A.G. Kawamura at his strawberry farm in Irving, California.

    “President Trump is making historic investments in the farm safety net and today’s announcement is one more action that supports our dairy producers by managing risk and strengthening markets so they can continue to provide wholesome nutrition for Americans,” said Secretary Brooke Rollins. “The Trump Administration will continue to stand with America’s farmers as the farm economy recovers from years of neglect under the last administration. Our mission to Make America Healthy Again continues after the recent release of the Dietary Guidelines for Americans 2025-2030 announcement, with the upcoming purchase of U.S. grown food that will reach those in need, all while benefitting American farmers facing unfair actions from foreign competitors.”

    OBBBA Improves DMC Coverage and Premium Fees

    Secretary Rollins announced the enrollment period for the Dairy Margin Coverage (DMC) program for the 2026 coverage year, an important safety net program that provides producers with price support to help offset milk and feed price differences. Starting January 12, 2026, dairy producers can enroll in DMC. The enrollment period ends February 26, 2026. The One Big Beautiful Bill Act (OBBBA), signed by President Donald J. Trump on July 4, 2025, reauthorized DMC for calendar years 2026 through 2031 and provided substantial program improvements, including establishing new production history and increasing Tier 1 coverage.

    The OBBBA increased DMC’s Tier 1 coverage level increased from five million pounds to six million pounds. All dairy operations that elect to enroll in DMC for 2026 will establish a new production history. Existing dairy operations that started marketing milk on or before January 1, 2023, will use the higher of milk marketings for the years of 2021, 2022, or 2023. New dairy operations starting after January 1, 2023, will use their first year of monthly milk marketings, even for a partial year. Milk marketing statements or production evidence are required to establish a production history.

    Dairy operations also have the option to lock-in coverage levels for six years (2026-2031) with premium fees discounted by 25%.

    DMC offers different levels of coverage, including an option that is free to producers, minus a $100 administrative fee. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.

    For more information visit the DMC webpage or contact your local USDA Service Center.

    Agricultural Marketing Service Section 32 Purchases

    Secretary Rollins also announced USDA’s intent to purchase up to $80 million in specialty crops from American farmers and producers to distribute to food banks and nutrition assistance programs across the country. These purchases are being made through USDA’s authority under Section 32 of the Agriculture Act of 1935 and will assist producers and communities in need. With this action, the Trump Administration is bolstering American prosperity by supporting American agriculture, rural communities, and those in need of nutrition assistance.

    The Agricultural Marketing Service (AMS) continuously purchases a variety of domestically produced and processed agricultural products. These “USDA Foods” are provided to USDA’s Food and Nutrition Service (FNS) nutrition assistance programs, including food banks that operate The Emergency Food Assistance Program (TEFAP), and are a vital component of the nation’s food safety net.

    USDA AMS will purchase up to $80 million of the following commodities:

    •Almonds: $20M

    •Grape juice: $20M

    •Pistachios: $20M

    •Raisins: $20M

  • Dairy Producers Must Sign-Up Before Sept. 20 for 2019 Coverage

    WASHINGTON, Aug. 19, 2019 — The U.S. Department of Agriculture (USDA) today announced that producers of nearly 17,000 dairy operations have signed up for the Dairy Margin Coverage (DMC) program since signup opened June 17. Producers interested in 2019 coverage must sign up before Sept. 20, 2019.

    DMC offers protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.

    “We’re encouraged by the number of dairy producers who have signed up for this new program, but we are hopeful that we will get more folks in the door,” said Bill Northey, USDA’s Under Secretary for Farm Production and Conservation.“At this point in the signup process, we are well ahead of the number of producers covered at this time last year under the previous safety net program, with more producers enrolling every day. As we move into the homestretch, we expect more producers across the country to get coverage through DMC and our team at FSA is really going above and beyond to make sure we get the word out there, the returns this year to-date should speak for themselves.”

    In June, when the DMC signup was announced, Secretary Perdue said, “For many smaller dairies, the choice is probably a no-brainer as the retroactive coverage through January has already assured them that the 2019 payments will exceed the required premiums.”

    To date, more than 60 percent of dairies with established production histories have enrolled in the program. Wisconsin has seen the most participants with more than 4,832 dairy operations, followed by Minnesota (1,865), New York (1,779), Pennsylvania (1,511) and Michigan (702).

    USDA’s Farm Service Agency (FSA) began issuing program payments to producers on July 11. DMC provides coverage retroactive to Jan. 1, 2019. The producers who have signed up to date will receive more than $219.7 million in payments for January through June, when the income over feed cost margin was $8.63 per hundredweight (cwt.), triggering the sixth payment for eligible dairy producers who purchased the $9 and $9.50 levels of coverage under DMC.

    To view weekly enrollment, production and payment reports (posted each Monday at 2 p.m. Eastern), visit FSA’s DMC webpage.