FarmFirst Dairy Cooperative is applauding Wisconsin and Minnesota lawmakers, including U.S. Sen. Tammy Baldwin, for urging the Senate Committee on Agriculture to consider updates to the Dairy Margin Coverage Program in the 2023 Farm Bill.
DMC is a safety net program for dairy farmers, which is a risk-management tool that addresses changes in the margin between milk prices and feed costs, has become a beneficial tool for producers since its implementation in the 2018 Farm Bill.
FarmFirst General Manager Jeff Lyon says the recommended enhancements submitted by the senators are essential in ensuring the program continues to work for producers.
“Since the 2018 Farm Bill, the average herd size has increased, and an incremental increase in Tier I volume is needed,” he says. “Further, production histories need to be updated to accurately reflects current milk production levels.”
The letter recommends that the production volume between Tier I and Tier II premiums be updated to reflect the growth in herd size. It also recommends producers be allowed to update their production history to 2022 levels for future DMC payments. And finally, the letter recommends the top DMC margin level be increased from $9.50 to $10.00 per hundredweight to reflect the increasing costs of non-feed inputs.
See a recent story on 2023 Farm Bill developments with FarmFirst: https://www.midwestfarmreport.com/2023/06/09/monitoring-farm-bill-marketing-orders/
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