Tag Archives: FSA

WASHINGTON – Dairy producers can now enroll in the Dairy Margin Coverage (DMC) for calendar year 2020. USDA’s Farm Service Agency (FSA) opened signup today for the program that helps producers manage economic risk brought on by milk price and feed cost disparities.

“We know it’s tough out there for American farmers, including our dairy producers,” said Bill Northey, Under Secretary for Farm Production and Conservation. “As Secretary Perdue said, farmers are pretty good at managing through tough times, and we know that more dairy farmers will be able to survive with this 2018 Farm Bill and its risk mitigation measures, like the Dairy Margin Coverage program.”

The DMC program offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer. The deadline to enroll in DMC for 2020 is Dec. 13, 2019.

Dairy farmers earned more than $300 million dollars from the program in 2019 so far. Producers are encouraged to take advantage of this very important risk management tool for 2020.

All producers who want 2020 coverage, even those who took advantage of the 25 percent premium discount by locking in the coverage level for five years of margin protection coverage are required to visit the office during this signup period to pay the annual administrative fee.

“Dairy producers should definitely consider coverage for 2020 as even the slightest drop in the margin can trigger payments,” said Northey. “Dairy producers should consider enrolling in DMC to guard against what has been, for several years, an extremely unforgiving market.”

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The 2018 Farm Bill created DMC, improving on the previous safety net for dairy producers. DMC is one of many programs that FSA and other USDA agencies are implementing to support America’s farmers.

For more information on enrolling in DMC and taking advantage of an online dairy decision tool that assists producers in selecting coverage for 2020, visit the DMC webpage.

For additional questions and assistance, contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.

WASHINGTON– The U.S. Department of Agriculture (USDA) has extended the deadline to September 27 for dairy producers to enroll in the Dairy Margin Coverage (DMC) program for 2019. The deadline had been September 20.

Authorized by the 2018 Farm Bill and available through USDA’s Farm Service Agency (FSA), the program offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.

“More than 21,200 dairy operations have already signed up for DMC, but we’re providing an additional week to help ensure interested producers have time to come into the office,” said Bill Northey, USDA Under Secretary for Farm Production and Conservation. “With smaller margins and increased feed costs, DMC has resulted in almost $230 million in payments disbursed. I know that some farmers may still be cautious given their experiences with former dairy support programs, but producers who have not signed up yet should come into a local office to learn how much money the program can put into their pockets.”

Almost half of the producers who have signed up so far are taking advantage of the 25 percent premium discount by locking in for five years of margin protection coverage. FSA has launched a new web visualization of the DMC data, which is available here.

Margin payments have triggered for each month from January through July. Dairy producers who elect higher coverage levels could be eligible for payments for all seven months. Under certain levels, the amount paid to dairy farmers will exceed the cost of the premium.

For example, a dairy operation that chooses to enroll for 2019 with an established production history of 3 million pounds (30,000 cwt.) and elects the $9.50 coverage level on 95 percent of production will pay $4,275 in total premium payments for all of 2019 and receive $15,437.50 in DMC payments for all margin payments announced to date. Additional payments will be made if calculated margins remain below the $9.50/cwt. level for any remaining months of 2019.

“My message to those dairy producers who are hurting out there: Don’t leave this kind of financial assistance on the table,” said Northey, who announced the deadline extension today as part of a hearing in front of the U.S. House of Representatives Committee on Agriculture. “Producers across the country have told us that DMC is a great risk management tool that works well, and it can work for you, too.”

More Information

On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation.

For more information, visit farmers.gov DMC webpage or contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.

LINCOLN, Nebraska – USDA Farm Service Agency (FSA) in Nebraska reminds producers of approaching application deadlines for purchasing risk coverage for some crops through the Noninsured Crop Disaster Assistance Program (NAP).

NAP covers losses from natural disasters on crops for which no permanent federal crop insurance program is available, including forage and grazing crops, fruits, vegetables, floriculture, ornamental nursery, aquaculture, turf grass and more. Coverage varies by county and by crop, so producers who are interested should contact their FSA county office for more information.

Upcoming application deadlines for NAP coverage for the 2020 production season in Nebraska, include:

  • Rye, triticale and wheat: Sept. 30, 2019
  • Alfalfa, mixed forages and grass: Nov. 15, 2019
  • Apples, aronia berries and grapes: Nov. 20, 2019

“Natural disasters that are considered eligible causes of loss for NAP include floods, drought, freeze, hail, and excessive moisture, among others,” said FSA State Executive Director Nancy Johner. “Given the variability of weather in Nebraska, we want to remind producers of the availability of NAP as a potential tool for risk management in 2020.”

NAP basic coverage is available at 55 percent of the average market price for crop losses that exceed 50 percent of expected production. Buy-up coverage is available in some cases. NAP can protect against losses associated with lower yields, destroyed crops or prevented planting. The 2018 Farm Bill allows for buy-up levels of NAP coverage from 50 to 65 percent of expected production in 5 percent increments, at 100 percent of the average market price. Buy-up coverage is not available for crops intended for grazing.

For all coverage levels, the NAP service fee is the lesser of $325 per crop or $825 per producer per county, not to exceed a total of $1,950 for a producer with farming interests in multiple counties. Premiums apply for buy-up coverage.

Producers qualifying as beginning, underserved, or limited resource farmers or those who can meet eligibility requirements as a military veteran are eligible for the basic level of NAP coverage at no cost and have the potential for reduction in the cost of buy-up premiums.

To learn more about NAP visit fsa.usda.gov/nap or contact your local USDA Service Center. To find your local USDA Service Center, visit farmers.gov.