2021 Dairy Margin Coverage likely to pay

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2021 Dairy Margin Coverage likely to pay

Dairy advisors are reminding farmers that sign up for USDA’s Dairy Margin Coverage Program ends in December and likely will payout.

Mark Stephenson with the University of Wisconsin says margins are forecasted lower for 2021 and payments are expected. “There’s about a 90 percent chance of a net benefit at the $9.50 level.”

University of Minnesota’s Marin Bozic tells Brownfield unknowns tied to COVID remain which makes it an ideal time to take advantage of risk management programs. “You have now the tools necessary to cover your bottom line throughout the entire 2021, and we are seeing more and more producers act on it.”

Both have been involved in creating decision tools for producers still considering their coverage levels.

A fourth DMC payment was triggered in September at $9.40. USDA says farmers have received 11 monthly payments for over $472 million through DMC since the program began in January 2019.