(AMES, Iowa) September 23, 2025—As family dairy farmers struggle with high operational costs and plunging milk futures prices, a national farm marketing group is proposing a change to the Dairy Margin Coverage (DMC) program.
DMC payments are based on the difference between the prices farmers receive for milk and an index of prices paid for feed. When that difference is higher, farmers are assumed to be more profitable, and payments are lower. When that difference is lower, however, farmers are assumed to be less profitable, and payments are higher.
But, most family dairy farmers grow their own feed, and as trade wars pressure feed prices lower, DMC program payments are also lower. “On my family dairy in April 2023, a low milk price of $20.70 provided me and my family with a much-needed payment of $3.66 per cwt.,” said Tom Crosby, who, along with his family, owns and operates a dairy farm in Shell Lake, Wisconsin. “This past July, however, an equally low milk price—just 10 cents higher than April 2023—paid us absolutely nothing.”
Today’s rock-bottom feed prices cancel out payments that would otherwise help the Crosbys and other dairy farmers get through the struggles that too-low milk prices bring with them. That’s why National Farmers is proposing a $13 margin floor price.
Crosby, who also serves as a Regional Director and board member of National Farmers, believes a floor price of $13.00 is reasonable based on past DMC feed indices and USDA cost of production estimates for growing feed on smaller farms.
“As simple as this solution seems, we expect it will provide invaluable security for our nation’s family dairy farmers,” said Crosby.
