FarmFirst Dairy Cooperative is applauding the introduction of the Dairy Farm Resiliency Act to make changes to the Dairy Margin Coverage or DMC program.
The bipartisan supported bill would require USDA to update the production history calculation in the program every five years, and to be based on the producer’s highest production year out of the last three years. If included in the 2023 Farm Bill, this provision would update the production history to that of the highest production year of 2020, 2021, and 2022. The bill also increases the Tier 1 threshold from five million pounds to six million pounds.
“The provisions in the Dairy Farm Resiliency Act are necessary for the DMC program to work efficiently and effectively for dairy producers in the Upper Midwest,” says Jeff Lyon, Farm First Dairy Cooperative General Manager. “Ensuring that the production history calculation is updated on a consistent basis and increasing the Tier 1 Threshold to more accurately reflect how the average herd size has grown since the 2018 Farm Bill will improve the DMC program and how it benefits dairy farmers.”
U.S. Rep. Derrick Van Orden is a cosponsor of the bill and serves on the House Agriculture Committee.
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