2019 YTD Dairy Margin Coverage Payments Announced
The old 2014 Dairy Margin program was considered, at best, a failure. The 2018 Farm Bill replaced the old program with the new Dairy Margin Coverage (DMC) program.
DMC allows for cheaper premiums and higher coverage. Last week, USDA announced the payments for each month of 2019 through May. Final margin levels by month are as follows:
- January – $7.71
- February – $7.91
- March – $8.66
- April – $8.82
- May – $9.00
As you can see, dairy margin has continued to increase each month during 2019. If farmers elected coverage at the $8 or higher level, payments will be made. The first 5 million pounds of coverage had very low rates, therefore, it is likely that many dairy farmers will collect some payments.
Here is a table of the payments for each month depending on the coverage level elected by the farmer:
USDA will release the remainder of the year’s payment amounts on a more timely basis.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
Comments are closed.