DAIRI/DMC is open for enrollment

Enrollment for the Dairy Margin Coverage (DMC) program is now open with the U.S. Department of Agriculture’s Farm Service Agency (FSA). Since September, we have coordinated with the Minnesota Department of Agriculture (MDA) and the state FSA to ensure a smooth rollout of Minnesota’s Dairy Assistance, Investment, and Relief Initiative (DAIRI) program that piggy-backs on the DMC program.

Here is everything you need to know regarding the current law and the DMC program:

Deadlines and How to Apply

• Initial Deadline: Applications for DMC are being accepted through February 26, 2026. Farmers should visit their local USDA-FSA office.

• Existing Farms: Farms need to establish a new production history. Farmers can use the highest of 2021-2023 production totals to meet FSA requirements – sending the history for all three years for your dairy producers would be a proactive step to help them sign up.
• New Farms: New dairy operations starting after Jan. 1, 2023, will use their first year of monthly milk marketings, even for a partial year. Milk marketing statements or production evidence are required to establish a production history.

Current Market Calculus

• Six-year discount: Farmers signing up for the six-year program receive a discount of 25 percent for the contract.
• Premiums: Premiums range from $0.00 at $4 coverage to $0.150/cwt at $9.50 for the first 6 million pounds of milk. Typically, farmers chose the $4 catastrophic or $9.50 maximum coverage based on economic analysis, but can lock in at any $0.50 increment in-between. Above 6 million pounds, farmers can pay up to $1.813 for coverage up to an $8 margin.
  
• Return on investment: Although this as seen as a long-term risk management tool, looking just at 2026, the program is projected (as of February 5, 2026) to pay for itself. Farmers covering 6 million pounds of milk with 95% coverage at a $9.50 margin would pay $8,550 and receive $12,234 based on January and February margins. However, a farmer signing-up for the six year program would pay only $6,750, gaining a net $1,800. In summary, after the $100 administrative fee, today farmers up to 6 million pounds will receive a net $0.61 per hundredweight or $0.91 per hundredweight if they are enrolled in the 25% six-year discount, for 2026.
  • Tier 2 coverage above 6 million pounds currently has no return for 2026.
  • These numbers are subject to change with the market, but no payments are projected for March through December 2026 at current futures prices. This means that dairy farmers should expect that, on average, margins improve. To evaluate the net benefit, visit the Dairy Margin Coverage Decision Tool, and click on “Net Benefit Forecasts” to evaluate scenarios: https://dmc.bozic.io/#/net-benefit-estimator
• Planning to sell out: One question we are often asked is whether farmers enrolled in the six-year program would need to keep paying premiums if they sold their dairy herd before 2031. When farmers stop paying premiums they are ineligible for enrollment in future years.

We will keep you updated as we work with the state on these policy shifts. For more information, visit https://www.fsa.usda.gov/resources/programs/dairy-margin-coverage-program-dmc

Here is everything you need to know regarding the current law and the DAIRI program:

Deadlines and How to Apply

• Initial Deadline: Applications for DAIRI are being accepted through March 19, 2026 by MDA (unless the FSA extends the DMC signup deadline). The online application is open now.

• Requirement: To be eligible for DAIRI, farmers must first sign up for a five-year DMC contract.

• Apply Online: Visit the MDA DAIRI webpage to get started.