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:
- Using an online portal at farmers.gov/cfap. This allows producers with secure USDA login credentials, known as eAuthentication, to certify eligible commodities online, digitally sign applications and submit directly to the local USDA Service Center.
- Completing the application form using our CFAP2 Application Generator and Payment Calculator found at farmers.gov/cfap. This Excel workbook allows customers to input information specific to their operation to determine estimated payments and populate the application form, which can be printed, then signed and submitted to their local USDA Service Center.
- Downloading the AD-3117 application form from farmers.gov/cfap and manually completing the form to submit to the local USDA Service Center by mail, electronically, or by hand delivery to an office drop box. In some limited cases, the office may be open for in-person business by appointment. Visit farmers.gov/coronavirus/service-center-status to check the status of your local office.
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.