Fred Hall – Dairy Specialist
The 2026 DMC enrollment period opened on January 12 and runs through February 26, 2026. This is a shorter signup window than in other enrollment years. This is the safety net program that provides producers with price support to help offset the differences in milk and feed prices.
The program was reauthorized for calendar years 2026 through 2031 under the One Big Beautiful Bill Act (OBBBA), signed into law July 4, 2025, which included several program improvements.
All producers enrolling for 2026 will establish a new production history, and Tier 1 eligible coverage has been expanded from 5 million to 6 million pounds.
Existing dairy operations that marketed milk on or before January 1, 2023, will establish production history using the highest annual milk marketings from 2021, 2022, or 2023. Operations that began marketing milk after January 1, 2023, will use their first year of monthly milk marketings, even if it is a partial year. Milk marketing statements or other production evidence are required.
Producers may also lock in DMC coverage levels for six years (2026–2031) and receive a 25% discount on premium fees.
Unchanged are the coverage options ranging from $4.00 to $9.50 per hundredweight (cwt) in 50-cent increments. A catastrophic coverage option ($4.00 margin) is available at no cost beyond the $100 annual administrative fee. All producers, including those previously enrolled, must re-enroll for 2026 coverage.
USDA’s online Dairy Decision Tool projects an average DMC margin of $8.51/cwt for 2026, nearly $1.00 below the maximum Tier 1 coverage level of $9.50. The tool forecasts margin-triggered payments in each of the first nine months of 2026, with margins projected at $7.37 and $7.29 in January and February, respectively, and rising to near or slightly above trigger levels in the fourth quarter of the year.
Margins are projected to fall below the $8.00 Tier 2 coverage level during the first four months of 2026, triggering payments for both tiers.
This institution is an equal opportunity provider. For the full non-discrimination statement or accommodation inquiries, go to www.extension.iastate.edu/legal
As of January 13, 2026, the Decision Tool is forecasting an all-milk price of $17.15 early in the year, rising gradually t