Here’s a reminder for dairy producers that the deadline to enroll in the Margin Protection Program (MPP) for Dairy for coverage in 2017 is December 16, and the National Milk Producers Federation has a tool on its Margin Protection Program website, futurefordairy.com, with materials to assist producers considering enrollment in the third year of the federal dairy safety net program. The enrollment period opened July 1 and originally was to end September 30th but was extended by USDA until December 16.
The Margin Protection Program (MPP) provides financial assistance to participating dairy producers when the margin, or the difference between the price of milk and feed costs, falls below a coverage level selected by the producer. Dairy farmers can insure their farms on a sliding scale between $4 and $8 per hundredweight, deciding both how much of their production history to cover, and the level of margin to protect. The program, created in the 2014 farm bill, offers more extensive coverage for low-margin conditions than previous programs.
Jim Mulhern, president and CEO of NMPF, said “The poor margins in the first half of 2016 demonstrate that the Margin Protection Program can play an important role in helping America’s dairy farmers manage their financial risks,” said Jim Mulhern, president and CEO of NMPF. “While we continue to examine ways to improve the program in the future, farmers need to carefully consider their risk management coverage options in 2017.”
And a reminder, farmers already participating in the program can change their coverage level during this three-month enrollment window.