Dairy Revenue Protection as a strategy to stabilize dairy revenue

Dairy Margin Coverage

Dairy Revenue Protection (RP) is a new tool available to dairy producers which can be used in conjunction with the Dairy Margin Coverage (DMC) program.  RP provides protection against an unexpected decline in revenue (price and/or yield) on the milk produced from dairy cows on a quarterly basis. There are five choices a farmer must decide on when enrolling in Dairy RP: 1) method to value milk (class or component), 2) Amount of quarterly milk to cover, 3) Coverage level for revenue guarantee, 4) Protection Factor, and 5) which quarterly contracts to purchase.

[Read more…]

Dairy Margin Coverage and how it may help your borrowers

By: Joleen Hadrich, Associate Professor, Extension Economist

Dairy Margin Coverage (DMC) is a voluntary federal program available to dairy farms across the country, which can be used to help stabilize dairy farm revenue.  DMC replaces the previous Margin Protection Program (MPP).  DMC makes payments to enrolled farms when the national average income over feed cost margin falls below the coverage level selected by the farmer. A number of coverage levels are available for dairy farmers with varying premium rates. 

[Read more…]