For more than 90 percent of the farmers previously enrolled in the Dairy Margin Protection Program, coverage during 2018 is guaranteed to be profitable. Dr. John Newton, Director of Market Intelligence for the American Farm Bureau says some dairy farmers may benefit by enrolling in the new Margin Protection program, He reports on fb.org that “Anecdotal reports suggest that as of mid-May fewer than 8,000 dairy operations had signed up for the improved MPP.”
“Similar patterns were observed in years past, whereby dairy operators would finalize their coverage options in the final week prior to the enrollment deadline. However, for the improved MPP, there is no need to wait as the benefits of participation are guaranteed to be positive for 92 percent of the dairy farmers previously enrolled in the program.”
With so much uncertainty around milk and feed prices in 2018, one certainty many dairy farmers have is that the improved MPP will provide some financial assistance. With little more than a week remaining until the signup deadline, farmers should take a second look at MPP for 2018 and make sure they are not leaving money on the table. Farmers have until June 1 to make new coverage elections.
Read more on the new MPP
