USDA opens 2027 Dairy Margin Coverage enrollment

The U.S. Department of Agriculture (USDA) has announced that enrollment for the 2027 Dairy Margin Coverage (DMC) program begins October 5 and will run through December 18, 2026. Administered by the Farm Service Agency, the voluntary program provides financial protection to dairy producers when the margin between national all-milk prices and average feed costs falls below a selected coverage level.

Producers can choose coverage levels ranging from $4.00 to $9.50 per hundredweight. Recent enhancements to the program, following the Working Families Tax Cuts Act, include expanding Tier 1 protection eligibility from five to six million pounds and updating production histories. Additionally, producers can secure coverage through 2031 at a 25% reduced premium cost via a multiyear election option.

Market projections suggest the program may be particularly relevant for 2027. With milk prices forecast in the low $20s and feed costs expected near $12 per hundredweight, average margins are projected at approximately $9.34 per hundredweight. This is below the maximum coverage level, potentially triggering indemnity payments, especially for Tier 1 production.