Dec. 11 is the deadline to enroll in Dairy Margin Coverage for calendar year 2021 and the deadline to apply for the Coronavirus Food Assistance Program 2.

More about DMC

“2020 has been a challenging year for agricultural producers, and we don't know yet what the next year will bring,” FSA Administrator Richard Fordyce. “Dairy producers should definitely consider coverage for 2021 as even the slightest drop in the margin can trigger payments.”

The DMC program, created by the 2018 Farm Bill, offers protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.

For DMC enrollment, producers must certify with FSA that the operation is commercially marketing milk, sign all required forms, and pay the $100 administrative fee unless the dairy operation qualifies for a limited resource, beginning, socially disadvantaged, or military veteran farmers and ranchers waiver.

Producers interested in DMC have the option to select a $4 catastrophic level of coverage with no premium fee or they can choose to buy-up coverage where the premium is based on margin triggers between $4.50 and $9.50 on 5% to 95% of established production history.

To determine the appropriate level of DMC coverage for a specific dairy operation, producers can utilize an online dairy decision tool.

More about CFAP2

This program provides direct relief to producers who continue to face market disruptions and associated costs because of COVID-19.

CFAP2 will provide up to $14 billion to eligible producers of certain row crops, livestock, dairy, specialty crops, aquaculture and more. All eligible commodities, payment rates and calculations can be found on farmers.gov/cfap. CFAP2 is a separate program from the first iteration of the program (CFAP1) and interested producers must complete a new application to be eligible for payment for CFAP2.

Customers seeking one-on-one support with the CFAP2 application process can call 877-508-8364 to speak directly with a USDA employee ready to offer general assistance. This is a recommended first step before a producer engages the team at the FSA county office.

CFAP2 application options

Producers have several options for applying to the CFAP2 program by the Dec. 11 deadline:

USDA Service Centers can also work with producers to complete and securely transmit digitally signed applications. Producers who are interested in digitally signing their applications should notify their local FSA office when calling to discuss the CFAP2 application process. Learn more about these solutions at farmers.gov/mydocs.

Producers of commodities with payments based on acreage will use acreage and yield information provided by FSA through the annual acreage reporting process.

All other eligibility forms, such as those related to adjusted gross income and payment information, can be downloaded from farmers.gov/cfap/apply. For existing FSA customers, including those who participated in CFAP1, these documents are likely already on file.

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