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USA 07.02.2024

American Farm Bureau Expresses Concerns Over Delayed Dairy Margin Coverage Enrollment

Source: The DairyNews
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The American Farm Bureau Federation (AFBF) has communicated its apprehensions regarding the delayed enrollment for the Dairy Margin Coverage (DMC) program in a letter addressed to U.S. Department of Agriculture Under Secretary Gloria Montaño Greene and Farm Service Agency Administrator Zach Ducheneaux.
American Farm Bureau Expresses Concerns Over Delayed Dairy Margin Coverage Enrollment
The AFBF urges the agencies to expedite the opening of enrollment for the DMC program, citing regulatory challenges and necessary software updates as causes for the delay.

While enrollment for various risk programs opened on December 18, 2023, the DMC program, a crucial risk management tool for the dairy sector, has faced delays. The AFBF emphasizes that this postponement exposes dairy farmers to risks not encountered by other agricultural counterparts.

Sam Kieffer, AFBF Vice President of Public Policy, expressed growing concerns among dairy farmer members related to delayed payments and their impact on farm cash flow. DMC program payments play a pivotal role in assisting farmers during challenging periods triggered by unfavorable margins. Timely payments are crucial to ensuring the resilience of farms, especially those most vulnerable.

The Dairy Margin Coverage program, embedded in the farm bill, offers price support to farmers when the difference between the all milk price and the average feed price drops below a specified dollar amount. The AFBF underscores the significance of the program in maintaining a stable farm economy that contributes to food security both domestically and internationally.

In the letter, Kieffer urges the Farm Service Agency to take prompt action by publishing necessary rules, implementing required software updates, and opening DMC enrollment at the earliest convenience. The timely administration of farm bill programs is deemed essential for the stability of the farm economy and ensuring food security for millions of consumers.
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February 2024
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