The information below has been supplied by dairy marketers and other industry organizations. It has not been edited, verified or endorsed by Hoard’s Dairyman.
The National Milk Producers Federation urged USDA to extend signup for the 2021 Dairy Margin Coverage to Jan. 30, 2021, allowing dairy farmers to make better-informed choices while giving both milk producers and USDA staff strained by coronavirus-related challenges additional time to communicate. The current signup deadline of Friday, Dec. 11 remains in place while USDA considers NMPF’s request.
“Extending the DMC deadline to the end of next month will allow farmers to better focus on the turbulent marketing environment we now expect to see in 2021, once we are through the upcoming holiday season,” said Jim Mulhern, president and CEO of NMPF, in the letter. “An extension would allow more time for interaction between USDA staff and farmers – both of whom are working through the challenges of this very difficult year.” USDA last week announced a similar one-month deadline extension to assist fisherman applying for its seafood trade relief program.
The DMC, the main federal risk-protection tool for dairy farmers, is projected to provide support to producers enrolled at the maximum $9.50/cwt. coverage level through at least the first half of 2021, as volatile market conditions are expected to persist well into next year. NMPF is urging dairy farmers to sign up for the program, given the high likelihood that payments will far exceed premiums next year.
NMPF has produced an easy-to-digest brochure highlighting the benefits of DMC coverage and an explanation of how the program works. Dairy producers can also visit NMPF’s page on risk management to learn more about DMC and other tools to promote financial security for dairy operations.