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June 4, 2019

Minnesota Will Rebate Dairy Margin Coverage Premiums This Year

 |  By: Jim Dickrell


The Minnesota Legislature approved and Gov. Tim Walz signed a partial rebate program for Dairy Margin Coverage (DMC) program premiums for 2019. The rebates could total up to $8 million, averaging $3,000 per farm.  


The program will cover the first 5 million pounds of production history and will be capped at $9,000 per farm. Farms above 16 million pounds of production history (about 750 cows) will not be eligible. The rebate program, however, will cover about 98% of Minnesota dairy farms, says Lucas Sjostrom, executive director of the Minnesota Milk Producers Association (MMPA).


“On a farm-by-farm basis, this will be a little bit of monetary aid for dairy farmers, but it will be a great mental reminder to dairy farmers that the state of Minnesota supports our farmers,” says Garrett Luthens, a dairy farmer from Hutchinson, Minn., and MMPA policy chair. “We hope it allows Minnesota to have one of the top DMC sign-up rates in the country and encourages farms to think longer term about their operations.”


Sjostrom agrees. “The state rebate program should push the DMC sign-up decision into ‘no-brainer’ territory,” he says.


In order to obtain the rebate, Minnesota farms will have to sign up for five years of coverage, though the rebates will only apply to 2019. “Legislators wanted to make sure the rebates only go to farms who intend to stay in business,” says Sjostrom.


To apply for the rebate, farmers must fill out an application, include a receipt from their Farm Service Agency (FSA) office that they have signed up for 5 years of coverage and provide their farm’s production history.


Sign-up for the Dairy Margin Coverage program is slated to begin June 17 at FSA offices and will end September 30.