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Dairy Margin Coverage update to pay more to Minnesota dairy farmers

FSA updated the feed cost calculation with 100% premium alfalfa hay to determine the monthly margin.

December 14, 2021

1 Min Read
cows eating in feedbarn
FORMULA UPDATE: The USDA Farm Service Agency updated the Dairy Margin Coverage feed cost calculation from 50% to 100% premium alfalfa hay to determine the monthly margin. This translates into an additional $18.2 million for Minnesota dairy farmers.Paula Mohr

USDA this week begins issuing additional payments for dairy farmers who enrolled in 2020 and 2021 coverage through the Dairy Margin Coverage (DMC) program.

The USDA Farm Service Agency updated the feed cost calculation by using 100% premium alfalfa hay rather than 50% premium hay to determine the monthly margin, which means an additional $18,216,000 for dairy producers in Minnesota.

Payments will be retroactive to Jan. 1, 2020.

Dairy operations with 2020 and 2021 contracts will be paid automatically for the applicable months.

In addition to updating the feed cost, USDA recently announced other dairy-related updates, including the start of the 2022 DMC signup, as well as the new Supplemental DMC. Both will run from Dec. 13, 2021 to Jan. 18, 2022.

DMC is a safety-net program for farmers. So far in 2021, DMC payments have been triggered for January through October for more than $1 billion.

To learn more or to participate in DMC, contact your local  USDA Service Center.

To determine the appropriate level of DMC coverage for a specific dairy operation, farmers can also use the online dairy decision tool.

USDA service center staff work with agricultural producers by phone, email and other digital tools. Because of the pandemic, some USDA Service Centers are open to limited visitors. Producers should contact their Service Center to set up an in-person or phone appointment. Additionally, more information related to USDA’s response and relief for producers can be found at 

Source: USDA Farm Service Agency St. Paul office, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all of its subsidiaries are not responsible for any of the content contained in this information asset.



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