Agriculture Secretary Sonny Perdue extended the deadline for producers to sign up for the Farm Service Agency’s Margin Protection Program – Dairy (MPP) for one week. The program provides a much-needed safety net for dairy producers, and signup will continue until Friday, June 8, 2018, for them to elect coverage. All dairy operations must make new coverage elections for 2018, even if the operation was enrolled during the previous 2018 signup period. Coverage elections made for 2018 will be retroactive to Jan. 1, 2018.
The Margin Protection Program for Dairy (MPP-Dairy) is a voluntary risk management program for dairy producers authorized by the 2014 Farm Bill through Dec. 31, 2018. Significant changes to MPP-Dairy for the 2018 coverage year are further authorized by the Bipartisan Budget Act of 2018. The MPP-Dairy offers protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.
Changes to MPP-Dairy
Based on feedback from dairy producers, Congress made several changes to MPP-Dairy in the Bipartisan Budget Act of 2018, including:
- Calculations of the margin period are monthly rather than bi-monthly.
- Covered production is increased to 5 million pounds on the Tier 1 premium schedule, and premium rates for Tier 1 are substantially lowered.
- An exemption from paying an administrative fee for limited resource, beginning, veteran, and disadvantaged producers. Dairy operators enrolled in the previous 2018 enrollment period that qualify for this exemption under the new provisions may request a refund.
USDA is mailing postcards advising dairy producers of the changes. For more information, contact your local USDA service center.
2018 Registration and Re-Enrollment Period
The registration and re-enrollment period for the coverage year 2018 will begin April 9, 2018, and continues through June 1, 2018. Dairy operations must make a new coverage election for 2018, even if you enrolled during the previous 2018 signup period. Coverage elections made for 2018 will be retroactive to January 1, 2018. More Info