Thursday, July 2, 2015

Sign Up Now for USDA Margin Protection Program for 2016

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. 


The Margin 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.


USDA 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.


Dairy operations enrolling in the program must meet conservation compliance provisions.

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