THE DAIRY MARGIN COVERAGE (DMC) ENROLLMENT is underway and continues through March 31 at local USDA Service Centers. Administered by the Farm Service Agency (FSA), the 2025 enrollment for the program opened on January 29. DMC is a voluntary risk management tool and includes both catastrophic coverage and higher levels of coverage for an annual premium. All dairy operations in the U.S. that have production records and are in compliance with conservation regulations are eligible.
DMC PROGRAM COVERAGE OFFERS VARYING LEVELS for the voluntary program, which range from $4 to $9.50 per hundredweight (cwt) of milk, in 50-cent increments. Premiums vary based on the coverage level and production history of the dairy, with payments calculated monthly when the margin falls below the selected coverage level.
A BIPARTISAN BILL HAS BEEN INTRODUCED that would require USDA to conduct mandatory dairy processing plant cost surveys every two years. The legislation intends to provide all stakeholders with clear and transparent data on all costs to process milk into dairy products.
THE 2024 U.S. DAIRY EXPORT VALUE ROSE 3% over the past year to a value of $8.2 billion. USDA Foreign Agricultural Service (FAS) reports this was the second highest value ever, only behind the 2022 record year of $9.5 billion. Export volumes declined slightly, slipping 0.4% on a milk solids equivalent.
CHEESE EXPORTS RALLIED TO AN ALL-TIME HIGH, growing 17% in 2024. U.S. suppliers set new records on exports to several important export markets, including Mexico, Central America, South America, and the Caribbean.
DAIRY PRODUCT IMPORTS REACHED A NEW RECORD for the sixth straight year, totalling $5.4 billion in 2024. This was a double-digit jump of 11% compared to 2023. The EU accounted for $3 billion of that total.
THE NUMBER OF LICENSED DAIRY FARMS fell below 25,000 to close 2024, with an increased average U.S. herd size reaching 377 head.
U.S. MILK PRODUCTION WAS NEARLY LEVEL with 2023, slipping by 0.2%, according to USDA data. The number of dairy cows also dropped less than one-half percent. Turn to pages 137 to 140 for more dairy statistics.
DAIRY PRODUCTS RANKED SIXTH IN COMMODITY EXPORTS in 2024 and comprised 4.7% of all agricultural exports. In the upcoming year, USDA forecasts $400 million in growth for dairy product exports.
A NEW U.S. TRADE REPRESENTATIVE has been appointed in President Trump’s administration. Jamieson Greer will serve as America’s top trade negotiator. Greer formerly served as chief of staff to U.S. Trade Representative Ambassador Robert Lighthizer. He will lead trade negotiations.
THE ANNUAL CATTLE INVENTORY REPORT indicated the sixth straight year of decline in the U.S. cattle herd. As of January 1, the inventory totaled 86.7 million head, down 9 million since the 2019 peak. Despite the smaller herd, beef production has been maintained with carcass weights averaging 40 pounds heavier than 2019.
FONTERRA’S NEW EMISSIONS REDUCTION PROGRAM was introduced to support farmers with incentives funded by separate agreements with Mars and Nestlé. Payments for members of the New Zealand cooperative will begin June 1 for farms that achieve emissions-related criteria.
FLUID MILK CONSUMPTION LEVELED OFF IN 2024, after 14 straight years of decline. U.S. consumers purchased 0.1% more milk over the prior year, with the largest jump coming from sales of other fluid milk products. This category includes kefir, eggnog, and lactose-free milks, and while still being a small part of overall sales, this group spiked by 27.1% over 2024 according to USDA. In addition, whole milk also showed improvement.
