Starting Sept. 2, 2014, farmers can enroll in the new dairy
Margin Protection Program. The voluntary program, established by the 2014 Farm
Bill, 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.
The U.S. Department of Agriculture (USDA) also launched a new
Web tool to help producers determine the level of coverage under the Margin
Protection Program that will provide them with the strongest safety net under a
variety of conditions. The online resource, available at www.fsa.usda.gov/mpptool, allows dairy farmers to quickly and
easily combine unique operation data and other key variables to calculate their
coverage needs based on price projections.
The Margin Protection Program, which replaces the Milk Income
Loss Contract program, gives participating dairy producers the flexibility to
select coverage levels best suited for their operation. Enrollment begins Sept.
2 and ends on Nov. 28, 2014, for 2014 and 2015. Participating farmers must
remain in the program through 2018 and pay a minimum $100 administrative fee
each year. Producers have the option of selecting a different coverage level
during open enrollment each year.
Dairy operations enrolling in the new program must comply with
conservation compliance provisions and cannot participate in the Livestock Gross
Margin dairy insurance program. Farmers already participating in the Livestock
Gross Margin program may register for the Margin Protection Program, but the new
margin program will only begin once their Livestock Gross Margin coverage has
ended.
The 2014 Farm Bill also established the Dairy Product Donation
Program. The program authorizes USDA to purchase and donate dairy products to
nonprofit organizations that provide nutrition assistance to low-income
families. Purchases only occur during periods of low dairy margins. Dairy
operators do not need to enroll to benefit from the Dairy Product Donation
Program.
Visit FSA online at www.fsa.usda.gov/factsheets, or stop by a local FSA office to
learn more about the Margin Protection Program or the Dairy Product Donation
Program.