Bills/H.R. 294

Dairy Farm Resiliency Act

Dairy Farm Resiliency Act

In CommitteeAgricultureHouseHouse Bill · 119th Congress
Bill Progress · House
Introduced
Committee
Passed House
Passed Senate
Passed Both
Signed

Plain Language Summary

# Dairy Farm Resiliency Act Summary **What the bill does:** This bill makes updates to the Dairy Margin Coverage (DMC) program, which is a federal program that helps dairy farmers manage financial risk. The DMC program lets dairy producers essentially buy "price insurance" to protect themselves if the gap between milk prices and feed costs shrinks. The bill would modernize how the program calculates a farm's eligibility and coverage levels. **Key changes:** The main updates are: (1) using a farm's most recent three-year production history instead of older records, and rechecking this every five years rather than less frequently; and (2) raising the threshold for smaller farms (Tier I) from 5 million to 6 million pounds of milk annually, with larger farms (Tier II) adjusted accordingly. These changes would make it easier for dairy operations to participate and update their coverage based on more current production data. **Who it affects and current status:** This bill primarily affects U.S.

dairy farmers and ranchers. It's currently in committee, meaning it's being reviewed and debated but hasn't yet been voted on by the full House of Representatives. The bill was introduced by Rep. Nicholas Langworthy, a Republican from New York, a state with significant dairy farming.

CRS Official Summary

Dairy Farm Resiliency Act This bill updates the Dairy Margin Coverage (DMC) program.As background, the DMC program was enacted in the 2018 farm bill to support dairy operations by allowing producers to buy a guaranteed margin for their milk production. The margin is the difference between the Department of Agriculture's (USDA's) national all milk price and a calculated feed cost, which provides producers optional risk protection on price and feed costs.The bill updates the current requirements that a participating dairy producer have an established milk production history with USDA's Farm Service Agency. Specifically, the bill requires that a dairy operation's production history for DMC be based on the most recent three-year history and be recalculated every five years.The bill also increases Tier I margin coverage for annual milk production to 6 million pounds or less (currently 5 million pounds or less) and Tier II margin coverage to over 6 million pounds (currently over 5 million pounds).

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Latest Action

February 14, 2025

Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.

Sponsor

6 cosponsors

Key Dates

Introduced
January 9, 2025
Last Updated
February 14, 2025
Read Full Text on Congress.gov →
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