Dairy producers urged to enroll in USDA’s 2025 Dairy Margin Coverage program

USA – Dairy producers across Ohio have until March 31, 2025, to enroll in the U.S. Department of Agriculture’s Dairy Margin Coverage (DMC) program, a vital safety net designed to protect against fluctuating milk and feed prices. 

The USDA opened this year’s signup period on January 29, and officials are urging farmers to act quickly as the deadline approaches. 

The program, seen as a cost-effective way to manage financial risks, has already attracted 368 dairy operations in Ohio, according to the USDA Farm Service Agency (FSA).

The DMC offers Ohio dairy farmers a buffer when the gap between milk prices and feed costs shrinks below a level they choose. 

This year’s program builds on updated calculations that factor in premium hay and feed expenses, ensuring payments better reflect the real costs farmers face. 

The initiative comes as part of the American Relief Act of 2025, which extended provisions from the 2018 Farm Bill to keep the DMC in place for another year. 

With milk prices often unpredictable and feed costs rising, the USDA views this as a critical tool for stabilizing farm incomes.

Traci Garza, Deputy State Executive Director for the USDA’s FSA, emphasized the program’s value. 

“We encourage producers to join the 368 dairy operations in Ohio that have already signed up for this important safety net program in advance of the deadline,” she said. 

“At US$0.15 per hundredweight for $9.50 coverage, risk protection through Dairy Margin Coverage is a cost-effective tool to manage risk and provide security for your operations.” 

Her call highlights the affordability and peace of mind the program offers to farmers navigating tough market conditions.

Reported by the USDA, the DMC allows producers to select from various coverage levels, with a modest US$100 administrative fee that is waived for those classified as limited resource, beginning, socially disadvantaged, or military veterans. 

This flexibility ensures broader access, especially for smaller or newer operations. 

A report by Morning Ag Clips noted that the program’s updated feed cost formulas, including 100% premium alfalfa hay, make it more aligned with the economic realities dairy producers face today.

Ohio’s dairy industry, a key part of the state’s agricultural economy, stands to benefit significantly. 

The National Milk Producers Federation has also backed the effort, urging farmers to contact their local FSA office to enroll.

“The clock’s ticking,” said a spokesperson from the federation, stressing the urgency as the deadline nears. 

With just over a week left, dairy producers are encouraged to act swiftly to secure this financial lifeline for 2025.