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Dairy Margin Coverage is a grant from the Department of Agriculture that funds risk management assistance for dairy producers. Administered by the USDA Farm Service Agency, this voluntary program provides payments to dairy operations when the margin between the national all-milk price and the average feed cost falls below a coverage level selected by the producer.
The program helps dairy farmers manage the financial risks associated with fluctuating milk prices and rising feed costs. Eligible dairy operations can choose coverage levels and pay corresponding premiums, with payments triggered automatically when dairy margins decline below the chosen threshold. The program is part of USDA's broader income support suite for agricultural producers.
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Dairy Margin Coverage Program (DMC) | Farm Service Agency A **. gov** website belongs to an official government organization in the United States.
Farm Service Agency U.S. Department of Agriculture * Resources Toggle sub menu for Resources * * Loans Toggle sub menu for Loans * Climate-Smart Agriculture and Farm Loan Programs * Farm Storage Facility Loan (FSFL) Program * Highly Fractionated Indian Land Loan Program (HFIL) * Indian Tribal Land Acquisition Loan Program * Loan Deficiency Payments (LDP) * Marketing Assistance Loans (MAL) * Organic Dairy Marketing Assistance Program (ODMAP 2024) * * Conservation Toggle sub menu for Conservation * Conservation Reserve Enhancement Program (CREP) * Conservation Reserve Program (CRP) * Farmable Wetlands Program (FWP) * Transition Incentives Program * Water-Saving Commodities (WSC) Program * * Disaster Recovery Toggle sub menu for Disaster Recovery * 2023/2024 Supplemental Disaster Assistance * Disaster Set-Aside Program (DSA) * Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish (ELAP) * Emergency Conservation Program (ECP) * Emergency Forest Restoration Program (EFRP) * Emergency Livestock Relief Program (ELRP) * Emergency Relief Program (ERP) * Livestock Forage Disaster Program (LFP) * Livestock Indemnity Program (LIP) * Milk Loss Program (MLP) * Noninsured Disaster Assistance Program (NAP) * On-Farm Stored Commodity Loss Program (OFSCLP) * Supplemental Disaster Relief Program (SDRP) * Tree Assistance Program (TAP) * * Income Support Toggle sub menu for Income Support * Agriculture Risk Coverage (ARC) & Price Loss Coverage (PLC) * Dairy Indemnity Payment Program (DIPP) * Dairy Margin Coverage Program (DMC) * Emergency Commodity Assistance Program (ECAP) * Farmer Bridge Assistance (FBA) Program * Marketing Assistance for Specialty Crops (MASC) * Organic Certification Cost Share Program (OCCSP) * Reimbursement Transportation Cost Payment (RTCP) * * General Programs Toggle sub menu for General Programs * Certified Mediation Program (CMP) * Farm Labor Stabilization and Protection Pilot Grant Program * Food Safety Certification for Specialty Crops (FSCSC) Program * * Outreach & Education Toggle sub menu for Outreach & Education * Partner Organization Resources * State Outreach Coordinators * * Price Support Toggle sub menu for Price Support * Loan Deficiency Payments * * Economic and Policy Analysis Toggle sub menu for Economic and Policy Analysis * Commodity Loan Activity Reports * Wool and Mohair Reports * Financial Management Information * * Initiatives Toggle sub menu for Initiatives * Acreage Crop Reporting Streamlining Initiative (ACRSI) * Tools Toggle sub menu for Tools * * Decision-Making Toggle sub menu for Decision-Making * Emergency Livestock, Honey Bees, Fish * * Online Services Toggle sub menu for Online Services * * Informational Toggle sub menu for Informational * Freedom of Information Act (FOIA) * News & Events Toggle sub menu for News & Events * * Laws and Regulations Toggle sub menu for Laws and Regulations * Federal Register Notices * Federal Register Publications & Related Documents * Careers Toggle sub menu for Careers * Climate-Smart Agriculture and Farm Loan Programs * Farm Storage Facility Loan (FSFL) Program * Highly Fractionated Indian Land Loan Program (HFIL) * Indian Tribal Land Acquisition Loan Program * Loan Deficiency Payments (LDP) * Marketing Assistance Loans (MAL) * Organic Dairy Marketing Assistance Program (ODMAP 2024) * Conservation Reserve Enhancement Program (CREP) * Conservation Reserve Program (CRP) * Farmable Wetlands Program (FWP) * Transition Incentives Program * Water-Saving Commodities (WSC) Program * 2023/2024 Supplemental Disaster Assistance * Disaster Set-Aside Program (DSA) * Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish (ELAP) * Emergency Conservation Program (ECP) * Emergency Forest Restoration Program (EFRP) * Emergency Livestock Relief Program (ELRP) * Emergency Relief Program (ERP) * Livestock Forage Disaster Program (LFP) * Livestock Indemnity Program (LIP) * Milk Loss Program (MLP) * Noninsured Disaster Assistance Program (NAP) * On-Farm Stored Commodity Loss Program (OFSCLP) * Supplemental Disaster Relief Program (SDRP) * Tree Assistance Program (TAP) * Agriculture Risk Coverage (ARC) & Price Loss Coverage (PLC) * Dairy Indemnity Payment Program (DIPP) * Dairy Margin Coverage Program (DMC) * Emergency Commodity Assistance Program (ECAP) * Farmer Bridge Assistance (FBA) Program * Marketing Assistance for Specialty Crops (MASC) * Organic Certification Cost Share Program (OCCSP) * Reimbursement Transportation Cost Payment (RTCP) * Certified Mediation Program (CMP) * Farm Labor Stabilization and Protection Pilot Grant Program * Food Safety Certification for Specialty Crops (FSCSC) Program * Partner Organization Resources * State Outreach Coordinators * Loan Deficiency Payments * Economic and Policy Analysis * Commodity Loan Activity Reports * Wool and Mohair Reports * Financial Management Information * Acreage Crop Reporting Streamlining Initiative (ACRSI) Dairy Margin Coverage Program (DMC) The Dairy Margin Coverage (DMC) Program, administered by the Farm Service Agency (FSA), is a voluntary risk management tool for dairy producers.
It offers financial assistance when the margin between the all-milk price and average feed cost falls below a coverage level chosen by the producer. By participating in DMC, dairy farmers can protect themselves against declines in milk prices and increases in feed costs, thereby ensuring more predictable and stable income. The program includes both catastrophic coverage and additional, higher levels of coverage for an annual premium.
The 2026 enrollment period for DMC closed on Feb. 26, 2026. Eligible applicants include dairy operations in the United States that produce and commercially market milk from cows.
Producers must provide production records and be in compliance with conservation regulations. The 2026 enrollment period closed on Feb. 26, 2026.
To enroll in the Dairy Margin Coverage Program, dairy producers must complete and submit an application to their local FSA office during the specified enrollment period. The application process includes providing production records and selecting the desired coverage level. Detailed enrollment instructions and deadlines are available through the local FSA office.
* Coverage Levels: Producers can select coverage levels ranging from $4. 00 to $9. 50 per hundredweight (cwt) of milk, in $0.
50 increments. * Premium Rates: Vary based on the coverage level and the production history of the dairy operation. Discounts are available for small-scale producers and those opting for higher coverage levels.
* Production History: Based on the highest milk production in 2021, 2022, 2023 for existing dairy operations or the first year of monthly milk marketing statements for new dairy operations. * Payments: Calculated monthly when the actual dairy production margin falls below the selected coverage level. Payments help offset the difference between the margin and the selected coverage level.
* Starting in 2026, DMC’s Tier 1 coverage level increased from 5 million pounds to 6 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 Jan.
1, 2023, will use the higher of milk marketings for the years of 2021, 2022, or 2023. * New dairy operations starting after Jan. 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. * 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%.
* Risk Management: Helps dairy producers manage the financial risks associated with volatile milk prices and feed costs. * Income Stabilization: Provides a safety net, ensuring more stable and predictable income for dairy farmers. * Customizable Coverage: Offers flexibility for producers to choose coverage levels that best fit their individual risk management needs.
* Dairy Margin Coverage News Release Jan 13, 2026 Dairy Margin Coverage Fact Sheet Dairy Margin Coverage Decision Tool Dairy Margin Coverage Program Enrollment Information Program Updates and Prices * Find Loans and Other Programs Stay up to date on the latest from FSA * Non-Discrimination Statement
According to the current listing, eligibility includes: U. S. Dairy Operations that commercially market milk. Eligible applicant types include: Unrestricted by Entity Type, Unrestricted by Individual Type. Confirm the full requirements in the official notice before applying.
The current listing shows recent federal obligations suggest $56,065,000 (2026). Verify award ceilings, matching requirements, and allowable costs in the official notice.
Yes — Dairy Margin Coverage is offered by Department of Agriculture and this listing comes from SAM.gov, an official U.S. federal source. Federal applications generally require registrations (for example SAM.gov or an agency submission portal), so allow extra lead time.
Start from the official opportunity page linked in this listing — it carries the sponsor's submission instructions.
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