By Blake Jackson
The U.S. Department of Agriculture (USDA) is encouraging dairy producers to enroll in the Dairy Margin Coverage (DMC) program, a key risk management tool that helps protect farms from fluctuations between milk and feed prices. Signup for the 2026 program began on January 12, with enrollment closing on February 26, 2026.
“We encourage producers to join the 1616 dairy operations in Wisconsin that have already signed up for this important safety net program in advance of the deadline,” said USDA Farm Service Agency (FSA) State Executive Director Sandy Chalmers in Wisconsin.
“At $0.15 per hundredweight for $9.50 coverage, risk protection through Dairy Margin Coverage is a cost-effective tool to manage risk and provide added financial security for your operations.”
The program was reauthorized and updated under the One Big Beautiful Bill Act (OBBBA), signed by administration on July 4, 2025. The legislation extends DMC through 2031 and includes several improvements, such as the creation of a new production history and an increase in Tier 1 coverage from five million pounds to six million pounds.
All operations enrolling for 2026 will establish a new production history based on prior milk marketings. Existing operations that marketed milk on or before January 1, 2023, may use the highest marketing totals from 2021, 2022, or 2023, while new operations will use their first year of milk production. Documentation of milk marketings or production is required to establish this history.
Dairy producers also have the option to secure coverage levels for six years, from 2026 through 2031, at a 25% discounted premium. The program offers multiple coverage options, including a free plan subject to a $100 administrative fee.
Producers can use USDA’s online dairy decision tool to determine the most suitable coverage for their operations. For further information, contact your local USDA Service Center.
Photo Credit: usda
Categories: Wisconsin, Government & Policy, Livestock, Dairy Cattle