The enrollment period for the Dairy Margin Coverage (DMC) program for the 2026 coverage year started on Jan. 12. Dairy producers can now enroll in DMC until the enrollment period ends on Feb. 26.
The DMC program that provides producers with price support to help offset milk and feed price differences was reauthorized for calendar years 2026 through 2031 with the passage of the One Big Beautiful Bill Act (OBBBA) on July 4. The bill also provided substantial program improvements, including establishing new production history and increasing Tier 1 coverage.
The National Milk Producers Federation (NMPF) outlines the DMC revisions to include:
- An opportunity to establish new production history based on the highest annual milk production level from any one of the 2021, 2022 or 2023 calendar years – production history established between 2014-25 will no longer be applicable for coverage.
- USDA clarification on how new operations (i.e., those that began marketing milk after Jan. 1, 2023) will be able to establish production history
- Eligibility for operations to enroll their first 6 million pounds of production at the Tier 1 level, up from 5 million pounds, with all additional production covered under Tier 2 – premium rate fees under Tiers 1 and 2 are unchanged.
- An opportunity for operations to make a one-time election of coverage level and coverage percentage, “locking in” those elections for a six-year period from January 2026-December 2031 – those who elect this option must participate in DMC at the same coverage levels for the six-year period and will receive a 25% premium discount for doing so.
The reauthorization and key improvements are helpful as prices have fallen and DMC assistance becomes essential for some farms in 2026.
“An improved DMC program couldn’t come a moment too soon,” Gregg Doud, president and CEO of NMPF, said. “We appreciate USDA’s efforts to quickly update the DMC program, and we urge dairy farmers who will benefit from the program to sign up as part of their risk management plans.”
Payments predicted
Price forecasts for 2026 have been released. Based on current milk and feed prices and futures markets, the 2026 milk income margins could be the lowest since 2023. Monthly DMC margins are forecast below $7.75 per hundredweight (cwt) for January-April and below $8.60 per cwt through August. The annual margin is forecast at $8.40 per cwt, well below the $9.50 per cwt Tier 1 indemnity payment trigger level. In addition, margins for five months (January-May) are currently forecast below the $8 per cwt Tier II indemnity payment trigger. Although, markets do change.
Enrollment
DMC offers different levels of coverage, including an option that is free to producers, minus a $100 administrative fee. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.
To enroll in the DMC program, dairy producers must complete and submit an application to their local FSA office during the enrollment period from Jan. 12-Feb. 26, 2026. The application process includes providing production records and selecting the desired coverage level. Detailed enrollment instructions and deadlines are available through the local FSA office.
For more information, visit the DMC webpage or contact your local USDA Service Center.
