The U.S. Department of Agriculture (USDA) has yet to open enrollment for the Dairy Margin Coverage (DMC) program. USDA’s Farm Service Agency (FSA) has indicated that the program is undergoing updates for the 2024 program year. However, industry groups are raising concerns about the delayed enrollment for the critical program. The American Farm Bureau Federation (AFBF) wrote to USDA Under Secretary Gloria Montaño Greene and FSA Administrator Zach Ducheneaux encouraging swift action.
“Farm Bureau recognizes the regulatory challenges associated with implementing the 2024 Dairy Margin Coverage program in a timely fashion. We understand the need for a new regulation and for software updates to reflect updated production history data,” AFBF vice president of public policy, Sam Kieffer said in the letter. “However, concerns related to delayed payments and their impact on farm cash flow are escalating among many of our dairy farmer members.”
In contrast, enrollment for many other risk management programs opened back in December. FSA expects to complete the necessary software updates to the DMC program sometime in February or March. Producers are encouraged to pay close attention to notifications from FSA in the coming weeks. FSA has indicated that delays to enrollment will not negatively affect full-year enrollment and that retroactive coverage will be available. However, AFBF points out that delays put dairy producers at risk for cash flow shortcomings.
“DMC program payments are triggered when margins are at their worst; and timely payments are critical to helping farmers manage through those bad times,” Kieffer noted. “Delayed DMC payments jeopardize the resilience of many farms, especially the most vulnerable. The timely launch of DMC enrollment is also critical to the program fulfilling its intended role as a risk management program.”
Brian German
Ag News Director / AgNet West