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University of Wisconsin-Extension

2025 Enrollment Now Open for Dairy Safety-Net Program: Key Updates on DMC

Written by Leonard Polzin Posted on January 22, 2025
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The U.S. Department of Agriculture (USDA) has opened the 2025 enrollment period for a key safety-net program: Dairy Margin Coverage (DMC).  Producers are encouraged to take advantage of this program, which provides financial protections against market fluctuations.

ProgramEnrollment Start DateEnrollment Deadline
Dairy Margin Coverage (DMC)January 29, 2025March 31, 2025

DMC: Protecting Dairy Producers

DMC is a voluntary program offering financial assistance when the difference between the all-milk price and feed costs (the margin) falls below the selected coverage level.

Dairy Margin Coverage (DMC) 2025 Enrollment Highlights

Program PurposeProvides financial protection when milk prices and feed costs create tight margins.
Coverage CostHighest tier 1 premium for 95% coverage of 5 mil lbs of production is $0.15 per hundredweight for $9.50 margin protection.
Who Should Enroll?Dairy producers, even if program elections remain unchanged for 2025.
How to EnrollContact your local USDA Farm Service Agency (FSA) office to sign a contract.
Administrator’s AdviceEnroll early to ensure coverage and avoid last-minute delays.
Why It MattersOffers an affordable safety net against unpredictable market fluctuations.
Coverage Cost$0.15 per hundredweight for $9.50/cwt margin coverage level.
Administrative Fee WaiversAvailable for limited resource, beginning farmers, socially disadvantaged, and military veteran producers.
Updated Feed Cost CalculationsReflects 100% premium alfalfa hay to better match producer expenses.

DMC offers a free coverage option (excluding a $100 administrative fee), making it accessible to small-scale producers. Producers can visit the DMC webpage or contact their local USDA Service Center for more details.

Enrollment Instructions

Producers are advised to contact their local USDA Service Center early to ensure timely enrollment.

ProgramContact for More Information
DMCVisit the DMC webpage or contact your local USDA Service Center.

FSA Encourages Early Action

FSA Administrator Zach Ducheneaux reminds producers of the importance of timely enrollment:

“Our safety-net programs provide critical financial protections against commodity market volatilities for many American farmers. Avoid the rush—contact your local FSA office for an appointment today.”

For application and eligibility details, visit www.fsa.usda.gov/resources/programs/dairy-margin-coverage-program-dmc

For more details and assistance, visit fsa.usda.gov.

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Categorized: Markets & Marketing, Uncategorized

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