By Scout Nelson
Enrollment for the 2026 Dairy Margin Coverage program is now open and will remain available through February 26. The program provides an important safety net for dairy operations of all sizes by helping protect income when the margin between milk prices and feed costs declines.
The 2026 program includes several updates authorized under last year’s One Big Beautiful Bill Act.
One major change is a production history update. All dairy operations that enroll this year will establish a new production history. Operations that marketed milk on or before January 1, 2023, will use their highest milk marketings from 2021 to 2022 or 2023. Operations that began after that date will use their first year of monthly milk marketings even if it represents only a partial year.
Another key update expands Tier 1 coverage. The production limit for Tier 1 has increased to 6 million pounds from the previous 5 million pounds. Any remaining milk production above that level will be covered under Tier 2. Premium rates for both tiers remain unchanged, making the program affordable while offering expanded protection.
The updated legislation also allows participants to lock in coverage levels for six years covering the 2026 through 2031 period. Those who choose this long-term option will receive a 25 percent discount on premium fees, providing additional savings and predictability.
Coverage levels are available up to $9.50 per hundredweight. A one-time administrative fee of $100 applies. Enrollment is completed through a local Farm Service Agency office.
The Dairy Margin Coverage program can also be combined with other USDA risk management tools including Dairy Revenue Protection and Livestock Gross Margin for Dairy. These options allow producers to build a stronger risk management strategy.
More program details are available at https://www.fsa.usda.gov/programs-and-services/dairy-margin-coverage
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Categories: Kansas, Business, Livestock, Dairy Cattle