Margin coverage opens enrollment

Attention, dairy farmers. There is a short signup timeline for the 2026 Dairy Margin Coverage election, and there is some homework allowing for a potential increase in production.

This does not always happen, and this will be in place until 2031 at minimum. Take advantage of the opportunity. Your creamery is likely already sending you production from 2021-2023.

There is also a 25% premium reduction if a 5-year lock-in is elected. DMC is a very low-cost risk management tool. The $.15 per covered production at a $9.50 margin coverage for Tier 1 production is appealing with current price projections. See the U.S. Department of Agriculture Farm Service Agency DMC price projections below the article. Please call your local office for an appointment. Let’s not wait until the Feb. 26 deadline.

USDA opens enrollment for DMC for 2026

USDA announced the enrollment period for the 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. Dairy producers can enroll in DMC from Jan. 12 to Feb. 26, 2026.

The One Big Beautiful Bill Act signed by President Trump 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 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.

— 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.

It is cold outside — darn cold. With that said, our hearts go out to our livestock producers who are weathering these conditions.

The FSA Livestock Indemnity Program compensates eligible livestock producers for eligible losses due to extreme weather events for various classes of livestock above established normal mortality rates.

This program requires a documented beginning inventory before the weather event, which is often a limiting factor. Your ag professionals can help. At a minimum, please ask an industry professional who frequents farm sites to count noses for the various classes of livestock listed. This helps support a documented beginning livestock inventory.

To be eligible for the LIP program, these classes of livestock must meet the temperature threshold for two consecutive days. In Stearns County, the county committee requires FSA staff to conduct a site visit to identify if the affected livestock had (or should have had) access to shelter or wind breaks. This helps determine if the ambient temp is used or if the wind chill factor comes to play. The chart below for Minnesota is used by the COC to assist in determining eligibility for this part of the program. It is important to note that the COC must also identify if the weather is abnormal for typical conditions within the county. Contact your local FSA office for additional information. Program fact sheets are available.

Be proud of what you have accomplished this year. We certainly are proud of you.

Farm Service Agency is an equal opportunity lender. Complaints about discrimination should be sent to: Secretary of Agriculture, Washington, D.C., 20250. Visit www.fsa.usda.gov for application forms and updates on USDA programs.