Cedar Rapids Today

Congresswoman Ashley Hinson of Iowa, along with Congressman Randy Feenstra and Congressman Brad Finstad, has sent a letter to Secretary Tom Vilsack and Administrator Zach Ducheneaux of the U.S. Department of Agriculture (USDA), urging the Biden administration to open the sign-up period for Iowa dairy farmers to enroll in the 2024 Dairy Margin Coverage (DMC) program. The DMC program is a crucial risk management tool for American dairy farmers, providing protection against inflation and market uncertainty.

In their letter, the lawmakers emphasized the importance of the DMC program, particularly in light of the challenges faced by dairy farmers in 2023. These challenges included high input costs, inflation, and unpredictable weather conditions. The DMC program offers certainty and stability during such unstable economic conditions, ensuring that dairy farmers can keep more of their hard-earned money and navigate market volatility.

Last year, margins for dairy producers were at their lowest since the inception of the DMC program, making it a crucial tool for hedging risk. The success of the nation's farm economy depends on the hard work and dedication of these farmers, and it is essential that they have the necessary risk management tools to thrive.

However, the lawmakers expressed their concern about the delay in opening the sign-up period for the DMC program in 2024. With no indication given to producers about when they will be eligible to select their coverage level, the uncertainty adds to the already unpredictable nature of the industry. The lack of transparency and communication from the USDA is worrisome for the farm economy and the constituents represented by the lawmakers.

It is imperative for the USDA to provide clarity and promptly open the sign-up period for the DMC program. Dairy farmers in Iowa and across the country rely on this program to safeguard their livelihoods and ensure the stability of the farm economy. The letter sent by Congresswoman Hinson, Congressman Feenstra, and Congressman Finstad urges the Biden administration to prioritize the needs of dairy farmers and make the necessary risk management tools available without further delay.

The full letter can be accessed here.

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