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.
From the USDA:
More than 23,000 of the nation's dairy operations – over
half of all dairy farms in America – have enrolled in the new safety-net
program created by the 2014 Farm Bill, known as the Margin Protection
Program.
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| Vilsack |
Agriculture Secretary Thomas Vilsack said the voluntary program provides financial assistance to
participating farmers when the margin – the difference between the price
of milk and feed costs – falls below the coverage level selected by the
farmer.
"Enrollment far exceeded our expectations in the first year," said
Vilsack. "We're pleased that so many dairy producers are taking
advantage of the expanded protection. USDA conducted a lot of outreach
to get the word out. When you compare the initial enrollment rate for
the Margin Protection Program to the longstanding federal crop insurance
program, where participation ranges from 30 percent to 80 percent
depending on the crop, it's clear that these outreach efforts made a
difference."
During the three months of the enrollment period, USDA conducted a
robust education and outreach effort to the nation's dairy producers.
The department held over 500 public meetings, sent out nearly 60,000
direct mailings, and conducted more than 400 demonstrations of the
Web-based tool designed to help applicants to calculate their specific
coverage needs.
Unlike earlier dairy programs, the Margin Protection Program offers
dairy producers a range of choices of protection that are best suited
for their operation. Starting with basic coverage for an administrative
fee of $100, producers can select higher levels of coverage at
affordable incremental premiums. More than half of applicants selected
higher coverage beyond the basic level.
Dairy producers interested in enrolling in the Margin Protection Program for Fiscal Year 2016 can register between July 1, 2015 and Sept. 30, 2015.
To learn more about the Margin Protection Program, visit the Farm Service Agency (FSA) online at http://www.fsa.usda.gov/ or contact a local FSA office at offices.usda.gov.
