By Matt Reese
By most accounts, the 2018 Farm Bill was a big win for livestock producers. Effective policy for the sector has largely been left out of farm bills in the past, but that trend appears changing in the Agriculture Improvement Act of 2018.
The 2018 Farm Bill is expected to cost $867 billion over the next decade and features major changes with dairy policy with higher coverage levels in the new Dairy Margin Coverage program (DMC). The DMC allows all dairy producers to insure margins up to $9.50 per hundredweight on their first 5 million pounds of Tier 1 production history. The DMC features lower-cost $5 margin coverage, allowing farm operations wishing to cover more than 5 million pounds of production to have a higher level of affordable catastrophic protection and expanded access to additional risk management tools allowing producers to participate in options including the Livestock Gross Margin insurance program and the new Dairy Revenue Protection program.… Continue reading