Dairy producers in the Finger Lakes and across the country can sign up for 2027 Dairy Margin Coverage beginning Monday, Oct. 5, with a larger share of each operation's milk production eligible for the program's strongest protection. Enrollment runs through Dec. 18.
The U.S. Department of Agriculture announced the enrollment window Wednesday. Rep. Nick Langworthy, whose district includes parts of the Southern Tier, highlighted the expanded coverage in a Friday release from his office and urged eligible dairy farmers to review their options.
The voluntary program makes payments when the gap between the national all-milk price and average feed costs falls below the coverage level a participating producer has selected. It is designed to help farms manage periods of lower milk prices, higher feed costs or both; a payment is not automatic simply because a producer enrolls.
What changed for dairy producers
Beginning with the 2026 program year, the amount of production eligible for Tier 1 coverage increased from 5 million to 6 million pounds. Langworthy's office said he had advanced that change through his Dairy Farm Resiliency Act proposal before it became part of the broader federal tax and spending law. USDA also says the law reauthorized Dairy Margin Coverage through 2031 and updated production-history rules.
Langworthy said dairy farms in Western New York and the Southern Tier face price and feed-cost swings beyond their control. He encouraged producers to enroll for 2027, calling the program a stronger safety net. His release did not estimate how many farms in his district would qualify for additional Tier 1 protection or how much those farms might receive.
Producers may choose a coverage level from $4 to $9.50 per hundredweight of milk. USDA says catastrophic coverage carries no premium, although a $100 annual administrative fee generally applies; higher coverage levels carry premiums. The level a farm selects determines when a margin decline can trigger a payment.
How to enroll
Dairy operations that produce and commercially market cow's milk can apply through their local USDA Farm Service Agency office during the Oct. 5-Dec. 18 window. Applicants must establish a production history from milk records and meet applicable program requirements. USDA offers an online decision tool to help producers compare coverage choices.
Farms that previously chose the multi-year 2026-2031 option can receive a 25% premium discount, but USDA says they must still certify that they commercially market milk, sign a contract and pay the annual administrative fee to maintain coverage each year. Producers can contact their local Farm Service Agency office for enrollment instructions.
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