The U.S. Department of Agriculture reported this week that 17,000 dairy producers have signed up for the new Dairy Margin Coverage Insurance program. It offers protections to dairy producers when the difference between the all milk price and the average feed cost known as the margin falls below a certain dollar amount selected by the producer. Minnesota Milk Producers Association Executive Director Lucas Sjostrom says he expects even more producers to sign up before the September 20 deadline.
He says the Dairy Margin Coverage program provides a positive safety net for smaller dairy operators.
Sjostrom says one worry going forward is making sure there’s some type of safety net for medium sized producers.
The latest signup showed Wisconsin having the most producers enrolled in the DMC with Minnesota coming in second.
