The American dairy industry is receiving a virtual shot in the arm from the U.S. Department of Agriculture. The agency announced $11.2 million in financial assistance for dairy farmers enrolled in the Margin Protection Program for Dairy (MPP-Dairy).
The dairy industry has struggled this year as the margin between milk prices and the cost of feed narrows.
“We understand the nation’s dairy producers are experiencing challenges due to market conditions,” Secretary of Agriculture Tom Vilsack said. “MPP-Dairy payments are part of a robust, comprehensive farm safety net that help to provide dairy-producing families with greater peace of mind during tough times.”
Caught between a presidential election and the 2018 Farm Bill, some lawmakers urged the USDA to provide emergency financial assistance for dairy farmers.
“I want to urge dairy producers to use this opportunity to evaluate their enrollment options for 2017, as the enrollment period is currently scheduled to end Sept. 30, 2016,” Vilsack said. “By supporting a strong farm safety net, expanding credit options and growing domestic and foreign markets, USDA is committed to helping America’s dairy operations remain successful.”
Dairy farmers who enrolled at the $6-$8 margin trigger coverage will receive payments.
USDA says the payment rate for May and June will be the largest sent since the program started two years ago.
MPP-Dairy payments are triggered when the difference between the price of milk and the cost of feed falls below the level of coverage selected by the dairy farmer for a two-month period.
Specific payment amounts and other program details are available at www.FSA.USDA.gov/dairy.