Effective Sept. 1, dairy farmers can enroll or opt-out for 2018 coverage in the Margin Protection Program (MPP)-Dairy.
The American Farm Bureau Federation (AFBF) and dairy farmers are pleased with the U.S. Department of Agriculture’s announcement to allow them to exit MPP.
“Secretary Perdue is using his authority to allow producers to withdraw from the MPP Dairy Program and not pay the annual administration fee for 2018,” Acting Deputy Under Secretary for Farm Production and Conservation Rob Johansson said. “The decision is in response to request by the dairy industry and a number of MPP-Dairy program participants.”
Dairy farmers should not sign up during the annual registration period to opt out.
By opting out, a farmer would not receive any MPP-Dairy benefits if payments are triggered for 2018.
Full details will be included in a subsequent Federal Register Notice. The decision would be for 2018 only and is not retroactive.
Established in the 2014 Farm Bill, MPP was intended to provide financial assistance to participating dairy farmers when the margin–the difference between the price of milk and feed costs–falls below the coverage level selected by the farmer.
The American Farm Bureau Federation (AFBF) was pleased with USDA’s announcement.
AFBF President Zippy Duvall said the national organization and its grassroots members look forward to working with USDA and Congress to enhance the dairy safety net.
“Approximately 24,000 dairy farms, representing 80 percent of the U.S. milk supply, are currently enrolled in the program. However, this year, only 2 percent of the milk enrolled participated at levels above the basic coverage option,” Duvall said. “The low participation rate is due to the poor performance of MPP in providing a viable safety net to dairy farmers.”
MPP-Dairy gives participating dairy farmers the flexibility to select coverage levels best suited for their operation. Enrollment ends on Dec. 15 for coverage in calendar year 2018.
Participating farmers will remain in the program through Dec. 31, 2018 and pay a minimum $100 administrative fee for 2018 coverage. Farmers have the option of selecting a different coverage level from the previous coverage year during open enrollment.
Appropriate forms can be sent via mail to a farmer’s administrative county FSA office, along with applicable fees, without necessitating a trip to the local FSA office.
USDA has a web tool to help farmers determine the level of coverage under the MPP-Dairy that will provide them with the strongest safety net under a variety of conditions. The online resource, available at http://www.fsa.usda.gov/mpptool, allows dairy farmers to quickly and easily combine unique operation date and other key variables to calculate their coverage needs based on price projections.
Farmers can also review historical data or estimate future coverage based on data projections. The secure site can be accessed via computer, smartphone, tablet or any other platform, 24 hours a day, seven days a week.
To find a local FSA office in your area, visit http://offices.usda.gov.