Reviewing Dairy Margin Coverage

Reviewing Dairy Margin Coverage

The 2014 farm bill provided the most comprehensive reform to the U.S. federal safety net in decades by replacing countercyclical income and commodity price support programs with a margin-based insurance-style safety net. Following the 2014 farm bill, the Bipartisan Budget Act of 2018 revamped the Margin Protection Program to make it more affordable while providing timelier and additional financial support to dairy farmers in times of low income-over-feed-cost margins. 

The 2018 farm bill builds on the improvements made in the Bipartisan Budget Act to significantly enhance the commodity support from the Agriculture Department’s Farm Service Agency. Reflecting these changes, the Margin Protection Program was renamed Dairy Margin Coverage. In addition to Title I improvements, the farm bill also allows dairy farmers to fully utilize the risk management tools available through private crop insurance products such as Dairy Revenue Protection or Livestock Gross Margin for Dairy Cattle.