Dairy Margin Coverage Program Provides Critical Support for Dairy Operations

The August milk margin triggered the eighth consecutive payment for dairy producers who obtained Dairy Margin Coverage (DMC) for the 2023 program year. August’s income over feed margin is $6.46 per hundredweight (cwt.) with projected DMC payments totaling $120 million. To date, including the projected August payments, dairy producers have received more than $1.2 billion in much needed economic support for 2023 and margin forecasts indicate the likelihood of more to come before the end of the calendar year.  

DMC is a voluntary risk management program administered by USDA’s Farm Service Agency (FSA) that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. 

“While livestock and crop producers alike have been financially impacted by catastrophic natural disaster events, dairy producers’ financial stressors have been compounded by significant market volatilities,” said FSA Administrator Zach Ducheneaux. “Dairy Margin Coverage is a key risk management tool for dairy operations to financially endure the numerous, and often unpredictable uncertainties that adversely impact market prices for milk.” 

Farm Service Agency- Payments Released

In the past several days the FSA office released payments from the following ad-hoc disaster programs listed below. Payment release has not been announced for the Pandemic Revenue Assistance Program (PARP).

• Emergency Livestock Relief Program Phase 1 – No action was required by producers for this payment as it was based on prior issued payments from their approved 2021 Livestock Forage Program application.
• Emergency Livestock Relief Program Phase 2 – Same as above and the phase 2 payment was based on the total phase 1 payment(s) issued
• Emergency Relief Program (Crops) Phase 2 – These payments are from the most recent sign-up for ERP Phase 2 that concluded on July 14. (Payments were subject to a national established program benchmark reduction factor, reduced for prior issued CFAP and ERP Phase 1 payments and in some situations reduced for having reached the overall ERP program established payment limitations.
• Dairy Margin Coverage (DMC) Program - These payments are for August 2023 DMC payments are triggered when the difference between the National all milk price and the National average feed cost (the margin) falls below the producer selected margin trigger, ranging from Tier 1 from $4.00 to $9.50, and Tier 2 from $4.00 to $8.00, calculated monthly.

Biden admin expands funding for farms to tackle livestock waste

The USDA’s Natural Resources Conservation Service saw record demand for its conservation and clean energy funding programs for 2023, noting late last month that there was “substantially more interest than funding available under the law.”

The agency said it expanded the types of projects eligible for funding following feedback from conservation partners and producers. USDA also considered activities based on scientific literature that showed potential for climate benefits.

“This funding will be used to meet producer demand for our oversubscribed programs and maximize climate benefits across the country while also providing other important environmental benefits,” USDA Secretary Tom Vilsack said in a statement.

Previously, anaerobic digesters were the only type of waste management practice eligible for funding. USDA noted that support for additional waste practices may only be provisional as the agency monitors whether there are quantitative benefits.

Beyond waste management, other practices added for funding include use of cover crops, brush management and energy efficient irrigation. USDA is also expanding areas eligible for funding under the Agricultural Conservation Easements Program.

“Ultimately, this will lead to economic opportunity for producers, more productive soil, cleaner water and air, healthier wildlife habitat and natural resource conservation for future generations,” Vilsack said.

USDA Designates Three Counties in Washington and 10 Counties in Oregon as Primary Natural Disaster Areas Due to Qualifying Drought

This Secretarial natural disaster designation allows the United States Department of Agriculture (USDA) Farm Service Agency (FSA) to extend much-needed emergency credit to producers recovering from natural disasters through emergency loans. Emergency loans can be used to meet various recovery needs including the replacement of essential items such as equipment or livestock, reorganization of a farming operation, or to refinance certain debts. FSA will review the loans based on the extent of losses, security available, and repayment ability.

Carbon Offsets Development Process Webinar

If you missed the most recent webinar about carbon offsets, you can find the recording below.