USDA is extending the deadline to sign up for 2023 Dairy Margin Coverage and Supplemental Dairy Margin Coverage until Jan. 31. The original deadline was Dec. 7.
“We recognize this is a busy time of year with many competing priorities, so we’ve extended the DMC enrollment deadline to ensure every producer who wants coverage for 2023 has the opportunity to enroll in the program,” said Zach Ducheneaux, Farm Service Agency administrator.
“With input costs at record highs and early projections showing possible DMC payments for the first eight months of 2023, it’s imperative that producers have time to consider their coverage needs and make choices that best fit their operations and risk-management plans,” said Jim Mulhern, president and CEO of the National Milk Producers Federation.
Nearly 18,000 operations that enrolled in DMC for 2022 have received margin payments for August and September for a total of $76.3 million. At 15 cents per hundredweight for $9.50 coverage, risk coverage through DMC is relatively inexpensive, according to FSA.
“NMPF also thanks USDA for giving farmers who did not sign up for supplemental DMC coverage in 2022 based on updated production levels another opportunity to do so this year,” Mulhern said.
Last year, USDA introduced Supplemental DMC, which provided $42.8 million in payments to better help small and mid-sized dairy operations that had increased production over the years but were not able to enroll the additional production.
Supplemental DMC coverage is applicable to calendar years 2021, 2022 and 2023. Eligible dairy operations with less than 5 million pounds of established annual production history may enroll supplemental pounds.
For producers who enrolled in Supplemental DMC in 2022, the supplemental coverage will automatically be added to the 2023 DMC contract that previously established a supplemental production history.
Producers who did not enroll in Supplemental DMC in 2022 can do it now. Producers should complete their Supplemental DMC enrollment before enrolling in 2023 DMC.
To enroll, producers will need to provide their 2019 actual milk marketings, which FSA uses to determine established production history.
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