Dairy producers will be able to enroll in the 2026 Dairy Margin Coverage (DMC) program beginning January 12, following an announcement made this week at the 107th American Farm Bureau Federation Convention.
U.S. Department of Agriculture Secretary Brooke L. Rollins confirmed the enrollment window will remain open through February 26, 2026. The program is designed to help offset periods when the margin between milk prices and feed costs narrows.
DMC was reauthorized through 2031 under the One Big Beautiful Bill Act, signed into law in July 2025. The legislation includes several changes that will apply beginning with the 2026 coverage year.
Higher Tier 1 coverage threshold
One of the most significant updates is an increase in the Tier 1 production threshold from five million pounds to six million pounds of milk. Tier 1 coverage applies to smaller volumes of production and generally carries lower premium costs.
All operations enrolling in DMC for 2026 will establish a new production history. Existing dairies that began marketing milk on or before January 1, 2023, will use the highest annual milk marketings from 2021, 2022, or 2023. Operations that began after that date will base their production history on their first year of milk marketings, even if it was a partial year. Producers must provide milk marketing statements or other production records.
Dairy operations may also choose to lock in coverage for six years, from 2026 through 2031. Those who elect the multi-year option will receive a 25 percent discount on premium fees.
Coverage options remain flexible
DMC continues to offer multiple coverage levels, including a no-cost option aside from a $100 administrative fee. Producers can select coverage levels that align with their individual risk tolerance and cost structure. USDA maintains an online decision tool to help producers compare coverage scenarios.
Enrollment is handled through local USDA Service Centers.
Section 32 purchases target specialty crops
Alongside the DMC announcement, USDA also confirmed plans to purchase up to $80 million in domestically produced specialty crops using its Section 32 authority under the Agriculture Act of 1935.
The purchases will be administered by USDA’s Agricultural Marketing Service and distributed through federal nutrition programs, including food banks operating under The Emergency Food Assistance Program.
The planned purchases include:
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Almonds: $20 million
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Grape juice: $20 million
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Pistachios: $20 million
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Raisins: $20 million
USDA regularly uses Section 32 purchases to support agricultural markets while supplying food assistance programs across the country.
