Payments under the Dairy Margin Coverage (DMC) program are triggered when the national all milk price and the national average feed cost (margin) falls below the margin trigger levels selected by producers.
The calculations for March for milk prices and feed components (corn, blended alfalfa hay, and soymeal) will trigger prices for March 2021 as the national average margin is $6.46 per hundredweight (cwt).
As a result, dairy operations that elected Tier 1 margin coverage levels at $9.50, $9.00, $8.50, $8.00, $7.50, $7.00, and $6.50 per cwt., and Tier 2 margin coverage levels at $8.00, $7.50, $7.00, and $6.50 per cwt. will be issued a payment.
Payments range from $0.04 per cwt. for the $6.50 margin trigger to $3.04 per cwt. for the $9.50 margin trigger coverage level.
