Colorado dairy producers are being reminded to enroll in the federal Dairy Margin Coverage program by Feb. 26 to secure risk protection for the 2026 calendar year, according to the U.S. Department of Agriculture. 

Enrollment for the program, which helps offset the difference between milk prices and feed costs, opened Jan. 12. State officials said the coverage provides a key financial safety net for dairy operations facing market volatility.

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“We encourage producers to join numerous dairy operations in Colorado that have already signed up for this important safety net program in advance of the deadline,” said Jerry Sonnenberg, executive director of the USDA Farm Service Agency in Colorado. “At $0.15 per hundredweight for $9.50 coverage, risk protection through Dairy Margin Coverage is a cost-effective tool to manage risk and provide added financial security for your operations.”

The program was reauthorized for calendar years 2026 through 2031 under the One Big Beautiful Bill Act, which was signed into law in July 2025. The legislation expanded benefits for producers, including increasing Tier 1 coverage and allowing operations to establish a new production history when enrolling for 2026.

Tier 1 coverage was expanded from five million pounds to six million pounds of production. Existing dairy operations that began marketing milk on or before Jan. 1, 2023, will establish production history based on the highest annual milk marketings from 2021, 2022 or 2023. Operations that began after Jan. 1, 2023, will use their first year of milk marketings, including partial years.

Producers are required to submit milk marketing statements or other production evidence to establish eligibility. Dairy operations may also choose to lock in coverage levels for six years, from 2026 through 2031, with premiums discounted by 25 percent.

The program offers multiple coverage levels, including a no-cost option aside from a $100 annual administrative fee. Producers can evaluate coverage options using an online decision tool available through the USDA.

More information about Dairy Margin Coverage is available through local USDA Service Center offices or on the program’s website.