Iowa Dairy Producers Urged to Enroll In 2026 Coverage Program

By Andi Anderson

The U.S. Department of Agriculture (USDA) is encouraging dairy producers in Iowa to enroll in Dairy Margin Coverage (DMC), a vital safety net program designed to protect against differences between milk and feed prices. Signup for 2026 began January 12, and the enrollment deadline is February 26, 2026.

“We encourage producers to join the 175 dairy operations in Iowa that have already signed up for this important safety net program in advance of the deadline,” said USDA Iowa Farm Service Agency (FSA) State Executive Director Starlyn Perdue. “At $0.15 per hundredweight for $9.50 coverage, risk protection through Dairy Margin Coverage is a cost-effective tool to manage risk and provide added financial security for your operations.”

The One Big Beautiful Bill Act (OBBBA), signed by President Donald J. Trump on July 4, 2025, reauthorized DMC through 2031 and introduced improvements.

These include establishing new production history, increasing Tier 1 coverage from five million to six million pounds, and offering six-year coverage options with a 25% premium discount.

Existing operations marketing milk on or before January 1, 2023, will use the highest milk marketings from 2021, 2022, or 2023 to establish production history. New operations beginning after January 1, 2023, will use their first year of monthly milk marketings, even if partial. Milk marketing statements or other production evidence are required for verification.

DMC provides several coverage levels, including a free option with only a $100 annual administrative fee. Producers can determine the best coverage using the USDA’s online dairy decision tool, helping tailor protection to their specific operation needs.

By enrolling in DMC, dairy producers gain financial security and a reliable tool to manage market risks. The program supports operations of all sizes while offering flexible options to fit individual farm goals, ensuring long-term stability for Iowa’s dairy industry.

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