Information from the USDA:
Beginning July 1, dairy farmers can enroll in the U.S. Department
of Agriculture’s (USDA) Margin Protection Program for coverage in 2016.
The voluntary program, established by the 2014 Farm Bill, provides
financial assistance to participating dairy operations when the margin –
the difference between the price of milk and feed costs – falls below
the coverage level selected by the farmer.
Protection Program gives participating dairy producers the flexibility
to select coverage levels best suited for their operation. Enrollment
begins July 1 and ends Sept. 30, 2015,
for coverage in 2016.
Participating farmers will remain in the program
through 2018 and pay a $100 administrative fee each year. Producers also
have the option of selecting a different coverage level during open
enrollment each year.
Margin Protection Program payments are based on an
operation’s historical production. An operation’s historical production
will increase by 2.61 percent in 2016 if the operation participated in
2015, providing a stronger safety net.
also has an online resource available to help dairy producers decide
which level of coverage will provide them with the strongest safety net
under a variety of conditions. The enhanced Web tool, available at www.fsa.usda.gov/mpptool,
allows dairy farmers to quickly and easily combine their unique
operation data and other key variables to calculate their coverage needs
based on price projections.
Producers can also review historical data
or estimate future coverage based on data projections. The secure site
can be accessed via computer, mobile phone, or tablet, 24 hours a day,
seven days a week.
enrolling in the program must meet conservation compliance provisions.