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Showing posts from September, 2019

Dairy Margin Coverage

September 20 is the last day for dairy farmers to enroll in the Dairy Margin Coverage program with your local Farm Service Agency office.Even dairy farmers who have signed up for the program can change their coverage levels or the one year or five-year option for the program until September 20.

Just a reminder, Dairy Margin Coverage is part of the new farm bill. It is the replacement for Margin Protection Program (MPP). DMC uses a nation-wide formula for feed cost and subtracts this from the US all milk price. This is the national milk price to feed margin and is calculated monthly. The premiums for DMC are substantially reduced from MPP, Tier 1 is under 5 million pounds.Tier II is 5 million pounds and up. DMC premiums are listed in Table 1.Discounted premiums are available for Tier I if a farm signs up for five consecutive years of DMC in 2019 – which is a 25 percent reduction in the premium cost. If a dairy farm participated in MPP-Dairy during 2014 through 2017, the farm can get 7…

Beyond the Economics of Prevent Plant Cover Crops

By David Bau, Extension Educator

Wet cool spring of 2019 left many farmers cramming to get their crops planted.  Many were unable to get all the crop planted on time and continued planting even after final planting dates lowering their level of insurance coverage.  Many fields were not planted at all and many acres applied to prevented planting acres.

Some reports show close to 20 million acres in the United States were prevented planted acres. With 11 million prevented plant acres for corn and 4.5 million prevented plant acres for soybeans. This created a problem never experienced by many farmers, what to do with these idle acres.

Some used tillage to control weeds, some used tillage and chemicals to control weeds, others just used chemical control while many others planted cover crops. All of these weed control systems have costs associated with them.

The majority of farmers carry crop insurance that will provide income for these prevented planted acres. If a farmer had 75% coverage…