Dairy Margin Protection Program

The Margin Protection Program for Dairy Producers (MPP-Dairy) replaces MILC and is effective through December 31, 2018.  The Margin Protection Program offers dairy producers: (1) catastrophic coverage, at no cost to the producer, other than an annual $100 administrative fee; and (2) various levels of buy-up coverage.   Catastrophic coverage provides payments to participating producers when the national dairy production margin is less than $4.00 per hundredweight (cwt).  The national dairy production margin is the difference between the all-milk price and average feed costs.  Producers may purchase buy-up coverage that provides payments when margins are between $4.00 and $8.00 per cwt.  To participate in buy-up coverage, a producer must pay a premium that varies with the level of protection the producer elects. – Read details about MPP-Dairy.

View the MPP-Dairy Summary and Graphics. This illustrates how payments would have differed from the former dairy program (MILC) that paid dairy producers $1.6 billion since 2009, whereas MPP-Dairy would have paid $2.54 billion.

Visit Webtool to Explore Coverage Options from the MPP-Dairy

In addition, the 2014 Act created the Dairy Product Donation Program.  This program is triggered in times of low operating margins for dairy producers, and requires USDA to purchase dairy products for donation to food banks and other feeding programs. – Learn more about the Dairy Product Donation Program (pdf)


Results of 2016 MPP-Dairy Enrollment

Prices

Read the details on how the prices below are used in the MPP calculation (PDF 87 KB).

     
MonthPay Periods

Corn ($/bu)

Alfalfa Hay ($/ton)

Soybean Meal ($/ton)

All Milk ($/cwt)

Final Feed Costs for MPP-D ($/cwt)Milk Margin Above Feed Costs ($/cwt)

Milk Margin /pay Period*

2016
June3       
May3.68147.00376.3514.508.727975.77202
Apr23.58153.00303.8115.008.169726.830277.14868
Mar3.57144.00276.2215.307.832917.467087
Feb1 3.57 142.00 273.61 15.70 7.786327.913670  8.00928
Jan3.66147.00279.5616.107.995118.104886
2015
Dec63.65150.00 289.7817.208.100609.0993979.55705
Nov3.60150.00308.6018.208.1852910.01471
Oct53.67156.00327.9717.708.484969.215049.08207
Sep3.68157.00333.6217.508.550918.94909
Aug43.68159.00357.8516.708.756417.943607.69510
July3.80169.00375.7116.609.153417.44659
June33.58178.00335.0316.908.741708.158317.99534
May3.62192.00320.2316.708.867637.83237
Apr23.75184.00336.6116.509.017887.482127.50415
Mar3.81172.00357.8316.609.073827.52618
Feb13.79172.00370.38 16.809.144617.655407.99554
Jan3.81174.00380.0217.609.264328.33569
2014
Dec63.78 183.00431.73 20.40 9.7355010.6645012.02943
Nov3.58184.00441.3923.009.6056413.39436
Oct
5
3.56194.00381.5024.909.2809915.6190115.51136
Sep3.48197.00525.7225.7010.2962915.40371
Aug
4
3.63209.00490.3024.1010.3614213.7385813.21061
Jul4.05216.00450.7923.3010.6173112.68265
Jun3

4.49222.00501.7223.2011.5459111.6540911.95747
May4.71224.00519.3824.2011.9391312.26087
Apr
2
4.71206.00514.0125.3011.6530613.6469413.87422
Mar4.51191.00495.7125.2011.0985014.10150

*At a milk margin minus feed costs of $8 or less, payments are possible depending on the level of coverage chosen by the dairy producer.

Sources:

Corn, Alfalfa hay and All-milk full month prices (not preliminary) can be found in the National Agricultural Statistics Service (NASS) Agricultural Prices monthly publication.

Soybean Meal prices can be found in the Agricultural Marketing Service (AMS) daily Central Illinois Soybean Processor report . (Go to the 48% Soybean Meal R monthly price at the bottom of the report).


Related Documents
 MPP Forms:

Handbook and Recent Notices

Handbook MPP-1 Margin Protection Program for Dairy Farmers     

MPP-33 Refunding 2016 Margin Protection Program for Dairy Producers (MPP-Dairy) Premium Fees 

MPP-32 Margin Protection Program for Dairy (MPP-Dairy) Procedures Farm Transfers and Farm Reconstitutions 

MPP-31 Refund of 2016 Margin Protection Program Premium Fees 

MPP-30 No Payment Trigger for November/December Margin Protection Program for Dairy Producer 

MPP-29 Margin Protection Program for Dairy (MPP-Dairy) Producers 2016 Administrative Fees Not Paid by Coverage Election Deadline