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, Margin Protection Program (MPP), announced the U.S. Department of Agriculture (USDA) in a news release.
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.
MPP 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.
Enrollment far exceeded our expectations in the first year, said U.S. Secretary of Agriculture Tom Vilsack. We’re pleased that so many dairy producers are taking advantage of the expanded protection.