USDA Expands 2026 Dairy Margin Coverage: Tier 1 Increased to 6M Pounds
ANAHEIM, CA — Speaking at the 107th American Farm Bureau Federation Convention, U.S. Secretary of Agriculture Brooke L. Rollins officially announced the expanded enrollment period for the 2026 Dairy Margin Coverage (DMC) program, alongside an $80 million commitment to Section 32 commodity purchases.
The DMC enrollment window for the 2026 coverage year officially opened on January 12, 2026, and will run through February 26, 2026. The program serves as a critical safety net, providing dairy producers with price support to offset volatile milk and feed price differences.
The latest expansion is funded under the One Big Beautiful Bill Act (OBBBA), which reauthorized the DMC program through 2031. A major victory for dairy operators within the legislation is the increase in Tier 1 coverage, which has been successfully raised from 5 million pounds to 6 million pounds.
To take advantage of the 2026 program, all enrolling dairy operations will establish a new production history. Existing operations marketing milk prior to January 1, 2023, will utilize their highest milk marketings from 2021, 2022, or 2023. Newer operations will use their first year of monthly marketings.
Furthermore, the USDA is offering a major financial incentive for long-term planning: producers who choose to lock in their coverage levels for the full six-year duration of the farm bill (2026-2031) will receive a 25% discount on their premium fees.
"President Trump is making historic investments in the farm safety net and today’s announcement is one more action that supports our dairy producers by managing risk and strengthening markets so they can continue to provide wholesome nutrition for Americans," Secretary Rollins stated during the convention.