Program reimburses annual premium payment for federal Dairy Margin Coverage program

Richmond, Va. - The enrollment period for the U.S. Department of Agriculture Farm Service Agency's 2027 Dairy Margin Coverage (DMC) program ends on Dec. 18, 2026. This voluntary risk management program provides dairy producers with financial assistance when the margin between the all-milk price and average feed cost falls below a certain coverage level.

To aid Virginia dairy producers' enrolling in the federal DMC program, the Virginia Department of Agriculture and Consumer Services (VDACS) administers the Dairy Producer Margin Coverage Premium Assistance Program, which provides reimbursement funding to dairy producers for their federal DMC program Tier One premium payment. Last year, 138 dairy farms, from 14 localities, applied to the Dairy Producer Margin Coverage Premium Assistance Program and were reimbursed a total of $590,706.

To apply for the state premium coverage reimbursement, dairy producers must submit a Virginia Dairy Producer Margin Coverage Premium Assistance Program application by May 15, 2027. To qualify for reimbursement, a dairy farm must meet the following criteria:

• Be enrolled in the 2027 DMC at the Tier 1 coverage level AND have paid the annual premium in full.
• Maintain a Grade A milk permit issued by VDACS.
• Be actively producing milk in Virginia at the time of application.
• Have an active resource or nutrient management plan as approved by the Virginia Department of Conservation and Recreation (DCR) or a local soil and water conservation district OR have a plan that is under review by DCR or a local soil and water conservation district.
• Provide a completed and signed Commonwealth of Virginia Substitute W-9 form.

Copies of required documents should be included in the application. Program reimbursement funds are limited and available on a first-come, first-served basis.

Applications may be emailed to [email protected]. Please include "2027 DPMC" in subject line. Applications may also be submitted by mail using the address on the application.

Questions regarding the Dairy Producer Margin Coverage Premium Assistance Program should be directed to the State Milk Commission at 804-786-2013 or [email protected].