The Farm Service Agency announced this week that March triggered the first payment to dairy farmers enrolled in the Dairy Margin Coverage Insurance program. The March income over feed cost margin was $9.15 per hundredweight. South Dakota Dairy Producers President Marv Post says dairy farmers need that help right now given the economics and pandemic impact.
He says most dairy producers are limited to how much milk they’re allowed to produce do to daily base requirements with companies they sell to.
Post says the DMC is operating now as it’s intended to as a safety net for those producers participating in the program.
Current projections indicate that a DMC payment is likely to trigger every month for the remainder of the year. Although the DMC enrollment for 2020 is now closed, dairy producers can expect FSA to open up sign up for 2021 coverage in July.
