The U.S. Department of Agriculture (USDA) announced enrollment for a new dairy Margin Protection Program, a voluntary program, established by the 2014 Farm Bill. The program will provide 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 Margin Protection Program replaces the Milk Income Loss Contract program. Enrollment runs from Sept. 2 through Nov. 28, 2014. 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, according to the USDA.
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.
A fact sheet on the new program is available at www.fsa.usda.gov/factsheets.