There is a new web-based tool developed in partnership with the University of Wisconsin to help dairy producers evaluate various scenarios using different coverage levels through the new Dairy Margin Coverage (DMC) program.
The 2018 Farm Bill authorized DMC, a voluntary risk management program that offers financial protection to dairy producers when the difference between the all milk price and the average feed cost falls below a certain dollar amount selected by the producer.
The University of Wisconsin launched the decision support tool in cooperation with FSA and it is designed to help producers determine the level of coverage under a variety of conditions that will provide them with the strongest financial safety net.
It allows farmers to simplify their coverage level selection by combining operation data and other key variables to calculate coverage needs based on price projections.
The decision tool assists producers with calculating total premiums costs and administrative fees associated with participation in DMC.
It also forecasts payments that will be made during the coverage year.
For more information, access the tool at fsa.usda.gov/dmc-tool.