Dairy Farm Resiliency Act

3/6/2025, 9:06 AM

Dairy Farm Resiliency Act

This bill updates the Dairy Margin Coverage (DMC) program.

As background, the DMC program was enacted in the 2018 farm bill to support dairy operations by allowing producers to buy a guaranteed margin for their milk production. The margin is the difference between the Department of Agriculture's (USDA's) national all milk price and a calculated feed cost, which provides producers optional risk protection on price and feed costs.

The bill updates the current requirements that a participating dairy producer have an established milk production history with USDA's Farm Service Agency. Specifically, the bill requires that a dairy operation's production history for DMC be based on the most recent three-year history and be recalculated every five years.

The bill also increases Tier I margin coverage for annual milk production to 6 million pounds or less (currently 5 million pounds or less) and Tier II margin coverage to over 6 million pounds (currently over 5 million pounds).

Bill 119 hr 294, also known as the Dairy Margin Coverage Program Improvement Act of 2021, aims to make changes to the Agricultural Act of 2014 specifically related to the dairy margin coverage program. This program provides financial assistance to dairy farmers when the gap between milk prices and feed costs reaches a certain level, known as the margin.

The main purpose of this bill is to improve the effectiveness of the dairy margin coverage program by making it more accessible and beneficial to dairy farmers. Some of the key provisions of the bill include increasing the coverage levels for dairy farmers, adjusting the feed cost formula to better reflect actual costs, and allowing farmers to update their production history to better reflect current conditions.

Additionally, the bill includes provisions to make the program more equitable for smaller dairy operations and to provide additional support for beginning and socially disadvantaged farmers. It also aims to improve the overall stability of the dairy industry by helping farmers manage risk and navigate market fluctuations. Overall, the Dairy Margin Coverage Program Improvement Act of 2021 seeks to strengthen the dairy industry by providing better support and protection for dairy farmers, particularly in times of economic uncertainty.
Congress
119

Number
HR - 294

Introduced on
2025-01-09

# Amendments
0

Sponsors
+5

Cosponsors
+5

Variations and Revisions

1/9/2025

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Dairy Farm Resiliency Act

This bill updates the Dairy Margin Coverage (DMC) program.

As background, the DMC program was enacted in the 2018 farm bill to support dairy operations by allowing producers to buy a guaranteed margin for their milk production. The margin is the difference between the Department of Agriculture's (USDA's) national all milk price and a calculated feed cost, which provides producers optional risk protection on price and feed costs.

The bill updates the current requirements that a participating dairy producer have an established milk production history with USDA's Farm Service Agency. Specifically, the bill requires that a dairy operation's production history for DMC be based on the most recent three-year history and be recalculated every five years.

The bill also increases Tier I margin coverage for annual milk production to 6 million pounds or less (currently 5 million pounds or less) and Tier II margin coverage to over 6 million pounds (currently over 5 million pounds).

Bill 119 hr 294, also known as the Dairy Margin Coverage Program Improvement Act of 2021, aims to make changes to the Agricultural Act of 2014 specifically related to the dairy margin coverage program. This program provides financial assistance to dairy farmers when the gap between milk prices and feed costs reaches a certain level, known as the margin.

The main purpose of this bill is to improve the effectiveness of the dairy margin coverage program by making it more accessible and beneficial to dairy farmers. Some of the key provisions of the bill include increasing the coverage levels for dairy farmers, adjusting the feed cost formula to better reflect actual costs, and allowing farmers to update their production history to better reflect current conditions.

Additionally, the bill includes provisions to make the program more equitable for smaller dairy operations and to provide additional support for beginning and socially disadvantaged farmers. It also aims to improve the overall stability of the dairy industry by helping farmers manage risk and navigate market fluctuations. Overall, the Dairy Margin Coverage Program Improvement Act of 2021 seeks to strengthen the dairy industry by providing better support and protection for dairy farmers, particularly in times of economic uncertainty.
Alternative Names
Official Title as IntroducedTo amend the Agricultural Act of 2014 with respect to the dairy margin coverage program, and for other purposes.

Policy Areas
Agriculture and Food

Comments

Recent Activity

Latest Summary2/25/2025

Dairy Farm Resiliency Act

This bill updates the Dairy Margin Coverage (DMC) program.

As background, the DMC program was enacted in the 2018 farm bill to support dairy operations by allowing producers to buy a guarant...


Latest Action2/14/2025
Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.