Not only is December 11 the deadline to apply for CFAP, it’s also the deadline to apply for the Dairy Margin Coverage program.
USDA Undersecretary for Farm Production and Conservation Bill Northey says the program has been a benefit to producers, especially in 2020.
“Like last year, dollars are a little tight on the dairy farm, and everybody’s looking to see if it’s going to be worth it or not,” he said. “I certainly would encourage folks to sign up. We looked at 2020, and we thought it wouldn’t kick in at all—who knew what 2020 would turn out like. None of us know what 2021’s like.”
He said DMC is a great risk management tool for a small premium to manage some of the margin. For some producers, it meant the difference between staying in business.
“Let’s hope we don’t need it in 2021, and if we do, we’ll have plenty of income to pay a very small premium,” said Northey. “If we have another year like this, then it can be the difference between being able to stay in business or not—I heard that from some producers this year.”
With that deadline approaching quickly, Northey says to get your appointment booked at your county office.
“It’s important to get taken care of,” he said. “It can be a very important financial decision for folks to be able to have that.”
Northey believes more producers will sign up than in 2020. For more information, click here.