“This payment comes at a critical time for many dairy producers,” said Farm Service Administrator Richard Fordyce. “It is the first triggered DMC payment for 2020, and the first payment to dairy producers in seven months.”

Current projections indicate that a DMC payment is likely to trigger every month for the remainder of 2020, a different expectation from last July when some market models had forecast no program payments for 18 months.

Authorized by the 2018 Farm Bill, DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. More than 13,000 operations enrolled in the program for the 2020 calendar year.

Although DMC enrollment for 2020 coverage has closed, dairy producers should look for FSA to open sign up for 2021 coverage in July.

For more information, visit DMC webpage or contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.

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Source: Wisconsin Agriculturist