National Milk Producers Federation Part 1
Dairy farmers have until December to enroll for the Dairy Margin Coverage Program. The National Milk Producers Federation is urging all dairy farmers to sign up for the maximum level of protection under the risk management program. NMPF spokesperson Chris Galen says unexpected market fluctuations this year, and expected volatility next year, make the program valuable for dairy farmers.
“This has certainly been a year where dairy farmers could use all the risk management tools that they can have, and the primary one remains the Dairy Margin Coverage Program. The program paid out to farmer who enrolled in it this year, particularly in the spring months when milk prices really cratered, and the DMC helped make certain situations better because of the assistance that it was offering. And as we are looking towards 2021, right now the USDA’s own decision tool shows that margins could be below $9.50 again during the first half of next year. So, this is the primary risk management tool offered by the federal government, and we encourage dairy farmers to make use of it.”
The enrollment period for the program opened last week.. Unlike difficult-to-predict federal disaster assistance that’s provided via specific legislation or administrative action, Galen says DMC coverage offers certainty in times of need, allowing for better financial planning and faster payment when necessary.
Galen also encourages dairy farmers to sign up for the second round of payments provided by the Coronavirus Food Assistance Program. More on that tomorrow!