--- title: DMC Update: Re-Enrollment of Additional Production & Adjustment to Alfalfa Portion of Feed Cost Estimate description: Supplemental DMC will provide $580 million to better help small- and mid-sized dairy operations that have increased production over the years but were not able to enroll the additional production. image: https://blog.highgrounddairy.com/hubfs/Canva%20images/Canva%20Design%20DAEycCb_b3Q.png --- Toggle navigation Menu - [About](https://www.highgrounddairy.com/about/) - [Company Profile](https://www.highgrounddairy.com/about/) - [Our Team](https://www.highgrounddairy.com/our-team/) - [Contact](https://www.highgrounddairy.com/contact/) - [Podcast](https://www.highgrounddairy.com/category/podcast-episodes/) - [Dairy Dashboard](https://www.highgrounddairy.com/dairy-market-intel/) [HighGround Dairy](https://www.highgrounddairy.com/) Market Intelligence, Hedge Execution, and Consulting Services for the Dairy Industry - [Market Intelligence](https://www.highgrounddairy.com/market-intelligence/) - [Insurance Services](https://www.highgrounddairy.com/insurance-services/) - [Our Plans](https://www.highgrounddairy.com/our-plans/) - [Futures & Options Execution](https://www.highgrounddairy.com/futures-options-execution/) - [Advisory Services](https://www.highgrounddairy.com/advisory-services/) - [Free Trial](https://www.highgrounddairy.com/free-trial/) - [Market Intelligence](https://www.highgrounddairy.com/market-intelligence/) - [Insurance Services](https://www.highgrounddairy.com/insurance-services/) - [Our Plans](https://www.highgrounddairy.com/our-plans/) - [Futures & Options Execution](https://www.highgrounddairy.com/futures-options-execution/) - [Electronic Trading Platforms](https://www.highgrounddairy.com/futures-options-execution/electronic-trading-platforms/) - [Market Access](https://www.highgrounddairy.com/futures-options-execution/market-access/) - [Over the Counter Partners](https://www.highgrounddairy.com/futures-options-execution/over-the-counter-partners/) - [Advisory Services](https://www.highgrounddairy.com/advisory-services/) - [Free Trial](https://www.highgrounddairy.com/free-trial/) - [Contact](https://www.highgrounddairy.com/contact/) - [About](https://www.highgrounddairy.com/about/) - [Company Profile](https://www.highgrounddairy.com/about/) - [Our Team](https://www.highgrounddairy.com/about/our-team/) - [News and Press Releases](https://www.highgrounddairy.com/latest/) - [Member Login](https://www.highgrounddairy.com/my-account/) - [Member Login](https://www.highgrounddairy.com/my-account/) ## DMC Update: Re-Enrollment of Additional Production & Adjustment to Alfalfa Portion of Feed Cost Estimate [Curtis Bosma](https://blog.highgrounddairy.com/author/curtis-bosma) 13 December 2021 - [Production](https://blog.highgrounddairy.com/tag/production) - - - [Click Here for the USDA December 8 Press Release](https://www.usda.gov/media/press-releases/2021/12/08/usda-opens-2022-signup-dairy-margin-coverage-expands-program) Highlights: - Supplemental DMC will provide $580 million to better help small- and mid-sized dairy operations that have increased production over the years but were not able to enroll the additional production. Now, they will be able to retroactively receive payments for that supplemental production. - Adjustments have been made to the alfalfa portion of the DMC Feed Cost formula. Rather than a 50% weighting for premium alfalfa, the alfalfa price used will be entirely based off of the premium alfalfa price. - HighGround continues to advise producers to sign up for the $9.50/cwt Coverage Level for Tier 1 Coverage, and between the $4.00/cwt and $5.00/cwt Coverage Levels for Tier 2 Coverage. The DMC Income Over Feed Cost has ranged from $5.25/cwt to $8.77/cwt in 2021 (Jan-Oct reported) triggering a Tier 1 payouts for the $9.50/cwt coverage level every month. - Since Dairy Margin Coverage (DMC) only covers up to 5 million pounds of production annually HighGround Dairy also recommends that producers actively engage in Dairy Revenue Protection (DRP), Livestock Gross Margin (LGM-Dairy), or other tools to obtain additional coverage. For more questions on these products please contact us! ---   Want to look at today's quotes? [![Click Here for the DRP Decision Tool](https://no-cache.hubspot.com/cta/default/8767382/a4c7fcf0-720e-43c8-acd4-a34acc1c18ab.png)](https://cta-redirect.hubspot.com/cta/redirect/8767382/a4c7fcf0-720e-43c8-acd4-a34acc1c18ab) Questions about DRP? [![Click Here to Schedule a Consultation](https://no-cache.hubspot.com/cta/default/8767382/48ef81e0-68c6-478d-9083-1574090e5cff.png)](https://cta-redirect.hubspot.com/cta/redirect/8767382/48ef81e0-68c6-478d-9083-1574090e5cff) Call/Text: 559-623-4172 Email: [drp@highgrounddairy.com](mailto:drp@highgrounddairy.com) ---   **Disclaimer:**HighGround Insurance Group (HGIG) is an agency affiliated with HighGround Dairy (HGD). HGIG is a licenesed insurance agency in many US states. HighGround Dairy is a division of HighGround Trading (HGT), an Introducing Broker (IB) registered under United States Laws. Nothing contained herein shall be construed as a recommendation to buy or sell commodity futures or options on futures.  This communication is intended for the sole use of the intended recipient.  Futures and options trading involves substantial risk and is not suitable for all investors.   Tags: [Production](https://blog.highgrounddairy.com/tag/production) Share on: - - - ### You May Also Like ### [28 April 2021 US Dairy Markets Production DRP & LRP: The Dangers of Speculating Around Insurance](https://blog.highgrounddairy.com/drp-lrp) [Back to blog](https://blog.highgrounddairy.com/) ### Subscribe Latest Posts - [Let's Chat Markets: Weekly Recap February 11, 2022](https://blog.highgrounddairy.com/lets-chat-markets-february-11-2022) 17 February 2022 | 4 min read - [Let's Chat Markets: Weekly Recap January 7, 2022](https://blog.highgrounddairy.com/lets-chat-markets-january-7-2022) 11 January 2022 | 5 min read - [DMC Update: Re-Enrollment of Additional Production & Adjustment to Alfalfa Portion of Feed Cost Estimate](https://blog.highgrounddairy.com/dmc-update-8-december-2021) 13 December 2021 | 2 min read - [Let's Chat Markets: Weekly Recap November 24, 2021](https://blog.highgrounddairy.com/lets-chat-markets-october-2021) 29 November 2021 | 10 min read - [Let's Chat Markets: Special Episode with Chris Walkland](https://blog.highgrounddairy.com/lets-chat-markets-chris-walkland) 16 November 2021 | 16 min read [Back to Latest](https://blog.highgrounddairy.com) ## Post navigation [Previous](https://blog.highgrounddairy.com/lets-chat-markets-october-2021) [Next](https://blog.highgrounddairy.com/lets-chat-markets-january-7-2022) Futures and options trading involves substantial risk and is not suitable for all investors. 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