With rising costs eroding dairy margins despite high farm milk prices, the National Milk Producers Federation (NMPF) is urging farmers to sign up for maximum 2023 coverage under USDA’s Dairy Margin Coverage (DMC) program, an important component of federal dairy risk-management programs supported by NMPF.
USDA has announced that DMC signup began, with a deadline of Dec. 7. Despite record prices this year, accompanying record costs resulted in DMC payments for August for farmers enrolled at the maximum coverage level.
“The current combination of high prices with costs that can be even higher illustrates the basic value of DMC for producers who can benefit from the program,” said Jim Mulhern, president and CEO of NMPF. “By calculating assistance via a margin rather than a target price, DMC offers a measure of protection against the current cost volatility that’s challenging many milk producers.”
Farmers should also consider signing up for federally backed risk-management programs appropriate to their operations, Mulhern said.… Continue readingRead More »