Dairy Producers in Louisiana Reminded to Obtain 2026 Dairy Margin Coverage by February 26

Alexandria, La. – The U.S. Department of Agriculture (USDA) is encouraging dairy producers to enroll in Dairy Margin Coverage (DMC), an important safety net program that helps offset milk and feed price differences. This year’s DMC signup began Jan. 12 and the deadline to enroll is Feb. 26, 2026.

“We encourage producers to join the 45 dairy operations in Louisiana that have already signed up for this important safety net program in advance of the deadline,” said USDA Farm Service Agency (FSA) State Executive Director Craig McCain in Louisiana. “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 for calendar years 2026 through 2031 and provided substantial program improvements, including establishing new production history and increasing Tier 1 coverage. 

The OBBBA increased DMC’s Tier 1 coverage level from five million pounds to six million pounds. All dairy operations that elect to enroll in DMC for 2026 will establish a new production history.  

·       Existing dairy operations that started marketing milk on or before Jan. 1, 2023, will use the higher of milk marketings for the years of 2021, 2022, or 2023.  

·       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.  

Dairy operations also have the option to lock-in coverage levels for six years (2026-2031) with premium fees discounted by 25%.  

DMC offers different levels of coverage, including an option that is free to producers, minus a $100 annual administrative fee. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.   

For more information on DMC, visit the DMC webpage or contact your local USDA Service Center.