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Thursday, July 25, 2019

USDA Releases First DMC Enrollment Update

Enrollment in the new Dairy Margin Coverage (DMC) program has already exceeded one third of licensed US dairy operations, according to USDA's first weekly update on signups for the new program.

Of the nation's 37,468 licensed dairy operations, 13,240 had enrolled in the program as of July 22. Among states, Wisconsin led enrollments with 4,121 farms, followed by Minnesota with 1,511, New York with 1,397 and Pennsylvania with 1,137. So far, farms enrolled in the program have qualified for $145 million in payments, $41 million of that going to Wisconsin operations.

DMC was established under the 2018 Farm Bill. Dairy groups have encouraged farmers to enroll in the program, stressing the major improvements under DMC compared with its predecessor, the Margin Protection Program (MPP).

Lawmakers crafted the new program with help from dairy groups to avoid many of the shortcomings of MPP, which saw poor enrollment and never lived up to expectations. Farms that enrolled in MPP between 2014 and 2017 are eligible for a partial refund of premiums they paid – up to 50 percent for cash refunds or 75 percent if applied toward DMC premiums.