Dairy producers are reminded that the sign-up period for the 2017 Milk Margin Protection Program for Dairy producers (MPP-Dairy) is underway and runs from July 1-September 30, 2016 at your local FSA office. Participating farmers will 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.
The MPP-Dairy program is a voluntary safety net program established by the 2014 Farm Bill that continues through December 31, 2018. The program provides eligible producers with indemnity payments when the difference between an all milk price and average feed cost (the margin), falls below coverage levels producers select on an annual basis.
Eligibility & Coverage Levels
To be eligible for MPP-Dairy, operations must produce and commercially market milk in the U.S., provide proof of milk production when registering, and NOT be enrolled in the Livestock Gross Margin for Dairy program (LGM-Dairy) along with meeting conservation compliance provisions required to participate in the MPP-Dairy program through FSA.
USDA has a 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. The online resource, allows dairy farmers to quickly and easily combine unique operation data and other key variables to calculate their coverage needs based on price projections. Producers can also review historical data or estimate future coverage needs, based on data projections. The secure site can be accessed via computer, Smartphone or tablet 24 hours a day, seven days a week.
Once enrolled, dairy operations are required to participate through 2018 by making coverage elections each year. Producers can mail the appropriate form to the producer’s administrative county FSA office, along with applicable fees without necessitating a trip to the local FSA office. If electing higher coverage for 2017, dairy producers can either pay the premium in full at the time of enrollment or pay 100 percent of the premium by Sept. 1, 2017. Premium fees may be paid directly to FSA or producers can work with their milk handlers to remit premiums on their behalf. Eligible dairy operations must register for MPP-Dairy coverage at the FSA office where their records are stored. Producers will need to supply the following information when signing up for the program.
- A production history establishment, which is completed on form CCC-781.
- Election of the annual coverage level and completion of the contract on form CCC-782.
- Payment of the $100 administrative fee, annually.
- Payment of the premium, if there is a premium owed by the due date. This will be dependent upon the premium level selected.
Also beginning July 1, 2016, FSA will begin accepting applications for intergenerational transfers, allowing program participants who added an adult child, grandchild or spouse to the operation during calendar year 2014 or 2015, or between Jan. 1 and June 30, 2016, to increase production history by the new cows bought into the operation by the new family members. For intergenerational transfers occurring on or after July 1, 2016, notification to FSA must be made within 60 days of purchasing the additional cows.