USDA Expands Dairy Margin Coverage and Section 32 Purchases for 2026

At the 107th American Farm Bureau Federation Convention, U.S. Secretary of Agriculture Brooke L. Rollins revealed the expansion of the Dairy Margin Coverage (DMC) program for the year 2026. The program, which acts as a safety net for dairy producers, will see its enrollment period commence on January 12, 2026, and conclude on February 26, 2026.

The expansion is part of the One Big Beautiful Bill Act (OBBBA) signed by President Donald J. Trump on July 4, 2025. This act reauthorizes the DMC program from 2026 through 2031, introducing improvements such as increased production history and enhanced Tier 1 coverage, which now accommodates up to six million pounds, up from five million pounds.

Additionally, dairy operations have the option to secure their coverage levels for the duration of six years (2026-2031) with a 25% discount on premium fees. This includes a free coverage option for producers, with only a $100 administrative fee, supported by an online dairy decision tool for coverage selection.

Furthermore, Secretary Rollins announced plans for the USDA to purchase up to $80 million in specialty crops, including almonds, grape juice, pistachios, and raisins. These purchases are executed under Section 32 of the Agriculture Act of 1935 and will be distributed to food banks and nutrition assistance programs.

The USDA's Agricultural Marketing Service (AMS) manages these purchases, contributing to USDA's Food and Nutrition Service (FNS) programs, including The Emergency Food Assistance Program (TEFAP). This move aims to assist both producers and communities requiring nutritional support, reinforcing American agriculture and rural prosperity.