Both feed costs and the milk price fell month over month for a DMC margin of $9.42 per hundredweight (cwt), triggering the first and only payment in 2025.

The influx of milk has pushed prices downward, and despite alternative revenue sources helping ease the pain on farms’ bottom lines, pressure is mounting on margins.

The enrollment period for the Dairy Margin Coverage (DMC) program for the 2026 coverage year started on Jan. 12. Based on current milk and feed prices and futures markets, the 2026 milk income margins could be the lowest since 2023.

The USDA released its Ag Prices report on Dec. 31, including factors used to calculate the November 2025 Dairy Margin Coverage (DMC) program margins.

The past year provided ample opportunities for dairy producers to capitalize on market conditions with both longstanding and new risk management strategies.

The USDA released catch-up Ag Prices report on Dec. 15, including factors used to calculate the September and October 2025 Dairy Margin Coverage (DMC) program margins.

USDA reports influencing dairy markets remain delayed following the conclusion of the government shutdown, and at the same time, seasonal pressures from the holiday season are shaping the U.S. dairy outlook for December. Producers should evaluate their current risk management options and secure additional coverage as 2025 comes to a close.

At the time of this writing, the government shutdown is now in its fourth week. While the shutdown has many USDA reports delayed and data unpublished, dairy insurance programs are available even if a prolonged shutdown could delay claim processing if indemnities are triggered.