USDA Opens 2027 Dairy Margin Coverage Enrollment: Tier 1 Cap Raised to 6 Million Pounds, Deadline December 18
The U.S. Department of Agriculture (USDA) announced in Washington on September 30, 2026, that dairy producers can enroll starting October 5 for 2027 Dairy Margin Coverage (DMC), a voluntary risk management program administered by the Farm Service Agency (FSA). Enrollment for 2027 runs through December 18, 2026.
DMC provides financial protection when the difference between the national all-milk price and average feed cost falls below a producer-selected coverage level. The Working Families Tax Cuts Act reauthorized DMC through 2031 and strengthened the program, with improvements effective beginning with the 2026 program year: the amount of production eligible for Tier 1 protection rose from five million to six million pounds, production histories were updated to better reflect current dairy operations, and producers can secure coverage through 2031 at a 25 percent reduced premium cost.
"Putting farmers first means making sure dairy producers have practical tools to protect their operations when markets fluctuate," said FSA Administrator Bill Beam. "Dairy Margin Coverage provides an affordable layer of protection when margins tighten, helping producers manage risk and keep their operations on solid ground."
For 2027, producers can select coverage levels ranging from $4.00 to $9.50 per hundredweight. A catastrophic level of coverage is available at no premium cost, although an annual $100 administrative fee generally applies, and producers may purchase higher levels for additional protection. USDA provides an online dairy decision tool, and producers should contact their local FSA county office to enroll.
Producers who previously elected the multi-year option for 2026 through 2031 must still certify to commercially market milk, sign a DMC contract, and pay the $100 administrative fee for each program year to maintain coverage; they continue at their selected coverage level and percentage and receive the 25 percent premium discount.
Source: U.S. Department of Agriculture
Published by GSM · USA (original Chinese edition)
Photo: 图：Wisconsin 州 Hixon 一处牧场的奶牛（资料图）。Jeff the quiet 摄，CC0，经 Wikimedia Commons。 / Photo: Dairy cows on a pasture in Hixon, Wisconsin (file photo). By Jeff the quiet, CC0, via Wikimedia Commons.
