WASHINGTON, May 7, 2019 – USDA’s Farm Service Agency (FSA) announced this week that the March 2019 income over feed cost margin was $8.85 per hundredweight (cwt.), triggering the third payment for dairy producers who purchase the appropriate level of coverage under the new Dairy Margin Coverage (DMC) program.


U.S. flag
    An official website of the United States government
     Here’s how you know Here’s how you know **Official websites use .gov**  A **.gov** website belongs to an official government organization in the United States.
 **Secure .gov websites use HTTPS**  A **lock** ( A locked padlock ) or **https://** means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
 Farm Service Agency
 U.S. DEPARTMENT OF AGRICULTURE
 About FSA
  Ask USDA
  Contact Us
  Forms
 Menu
  close
   Home
    Programs & Services
     ARC/PLC Program
         Civil Rights
         Certified Mediation Program
         Climate Adaptation Plan
         Conservation Programs
         Cooperative Agreements
         Dairy Margin Coverage Program
         Disaster Assistance Programs
         Economic & Policy Analysis
       Emergency Relief 
         Environmental & Cultural Resource Compliance
         Farm Bill Home
         Farm Labor Stabilization & Protection Pilot Grants
         Farm Loan Programs
         Financial Management Information
         Increasing Land Access
         Initiatives
       Laws and Regulations
         Margin Protection Program for Dairy
         Market Facilitation Program
         MIDAS
         Organic Certification Cost Share Program
         Outreach & Education
         Payment Eligibility
         Price Support
         Rice Production Program
    State Offices
    Online Services
     LDP
         eARC/PLC
         Farmers.gov (FSA Farm+)
         FSA Online Data Resources
         Loan Assistance Tool
    Newsroom
     Fact Sheets
         News Releases
         Emergency Designations
         Stakeholder Information
         eFOIA
       Meetings & Events
         Public Service Announcements
         County Committee Elections
         Fence PostSearch small Search
 USDA Announces March Income over Feed Cost Margin Triggers Third 2019 Dairy Safety Net Payment  Contact:FPAC.BC.Press@usda.gov *Dairy Margin Coverage Program Sign-Up Begins June 17* **WASHINGTON, May 7, 2019** – USDA’s Farm Service Agency (FSA) announced this week that the March 2019 income over feed cost margin was $8.85 per hundredweight (cwt.), triggering the third payment for dairy producers who purchase the appropriate level of coverage under the newDairy Margin Coverage(DMC) program. DMC, which replaces the Margin Protection Program for Dairy (MPP-Dairy), offers protection to dairy producers when the difference between the all milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer. “I encourage all dairy operations to sign up for DMC when we begin accepting applications in June,” said FSA Administrator Richard Fordyce. “Under certain coverage levels, the amount to be paid to dairy farmers for the months of January, February and March already exceed the cost of the premium.” The signup period for DMC opens June 17, 2019. Dairy producers who elect a DMC coverage level between $9 and $9.50 would be eligible for a payment for January, February and March 2019. For example, a dairy operation that chooses to enroll an established production history of 3 million pounds (30,000 cwt.) and elects the $9.50 coverage level on 95 percent of production would receive $1,543.75 for March **Sample calculation:** $9.50 - $8.85 margin = $0.65 difference $0.65 x 95 percent of production x 2,500 cwt. (30,000 cwt./12) = $1,543.75 DMC premiums are paid annually. The calculated annual premium for coverage at $9.50 on 95 percent of a 3-million-pound production history for this example would be $4,275. **Sample calculation:** 3,000,000 x 95 percent = 2,850,000/100 = 28,500 cwt. x 0.150 premium fee = $4,275 The dairy operation in the example calculation will pay $4,275 in total premium payments for all of 2019 and receive $8,170 in DMC payments for January, February and March combined. Additional payments will be made if calculated margins remain below the $9.50/cwt level. All participants are also required to pay an annual $100 administrative fee in addition to any premium, and payments will be subject to a 6.2 percent reduction to account for federal sequestration. Operations making a one-time election to participate in DMC through 2023 are eligible to receive a 25 percent discount on their premium for the existing margin coverage rates. For the example above, this would reduce the annual premium by $1,068.75. **About DMC** On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation. FSA is committed to implementing these changes as quickly and effectively as possible, and today’s updates are part of meeting that goal. Recently, FSA announced the availability of theDMC decision support toolas well asrepayment optionsfor producers who were enrolled in MPP-Dairy. For DMC signup, eligibility and related dairy program information, visit theDMC webpageor contact your local USDA service center. To locate your local FSA office, visitfarmers.gov/service-locator.
 USDA is an equal opportunity provider, employer and lender.
 Return to the list of News Releases
 Placeholder
 Recent News USDA Announces 2024 Wool and Mohair Marketing Assistance Loan Rates
WASHINGTON, Dec. 27, 2023 – The U.S. Department of Agriculture (USDA) Commodity Credit Corporation today announced Marketing Assistance Loan rates for 2024-crop graded wool by micron class. Loan rates for ungraded wool and mohair are unchanged and remained the same from the prior crop year.
USDA Appoints New Members to the Federal Advisory Committee for Urban Agriculture and Innovative Production
WASHINGTON, Dec. 20, 2023 – Agriculture Secretary Tom Vilsack appointed four new members to the Urban Agriculture and Innovative Production Federal Advisory Committee (Committee). The new members are replacing four members whose terms are expiring and rotating off the Committee. The Committee is part of the U.S. Department of Agriculture’s (USDA) efforts to support urban agriculture and innovative production, creating a network for feedback.
Agriculture Risk Coverage and Price Loss Coverage Programs Receive 2018 Farm Bill One Year Extension, Farmers Can Now Enroll for the 2024 Crop Year
WASHINGTON, Dec. 18, 2023 – The U.S. Department of Agriculture (USDA) today announced that agricultural producers can now enroll in the Farm Service Agency’s (FSA) Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2024 crop year. Producers can enroll and make election changes for the 2024 crop year starting Dec. 18, 2023. The deadline to complete enrollment and any election change is March 15, 2024.
 Home
   Programs & Services
   State Offices
   Online Services
   Newsroom
 Farmers.gov
          USA.gov
          USDA.gov
          Whitehouse.gov
       Accessibility Statement
          Common Questions
          Freedom of Information Act
       No FEAR Report
          Information Quality
          Non-Discrimination Statement
       Policies and Links
          Privacy Policy
          Sitemap
    Sign up for updates
      Subscribe
 Farm Service Agency
 U.S. DEPARTMENT OF AGRICULTURE
 facebook-loFacebook
 youtube-loYouTube
 twitter-loTwitter
 gov-delivery-loTwitter
 rss-loRSS