Margin Protection Program for Dairy

Statement on the Extension of Signup Deadline for MPP-Dairy

June 4, 2018 - 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 is 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 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.


About the Program

The program offers dairy producers: (1) catastrophic coverage, at no cost to the producer, other than an annual $100 administrative fee (which is waived in some cases); and (2) various levels of buy-up coverage. Read more on our fact sheet.


Tool to Explore Coverage Options

USDA has a web tool to help producers determine the level of coverage under the MPP-Dairy 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 based on data projections. The secure site can be accessed via computer, smartphone, tablet or any other platform.


Results of 2017 MPP-Dairy Enrollment 
Results of 2016 MPP-Dairy Enrollment
Results of 2015 MPP-Dairy Enrollment

Prices

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

MonthPay PeriodsCorn ($/bu)Alfalfa Hay ($/ton)Soybean Meal ($/ton)All Milk< ($/cwt)Final Feed Costs for MPP-D ($/cwt)Milk Margin Above Feed Costs ($/cwt)Milk Margin /pay Period*
2018
September3.39180.00318.3216.708.442448.257578.25756
August3.36177.00332.5015.908.473387.426617.42662
July3.47179.00341.0815.408.681856.718146.71815
June3.58181.00355.7116.308.934797.365207.36521
May3.67189.00393.5516.209.419076.780936.78093
April3.58183.00385.8415.809.183676.616356.61635
March3.51166.00379.8515.608.831636.768376.76837
February3.38155.00362.8515.308.416516.883496.88349
January3.29152.00322.5916.107.982958.117058.11705
2017
December63.23148.00319.2217.207.839019.360999.87485
November3.15148.00313.5218.107.7112910.38871
October53.26152.00315.2317.907.8966710.003339.99619
September3.27149.00307.7017.807.810959.98905
August43.27147.00301.0518.007.7346710.265339.67123
July3.49152.00326.0417.308.222879.07713
June33.43152.0300.7217.307.972399.327608.97093
May3.45155.00307.6316.708.085748.61426
April23.43148.00305.6716.507.953988.546028.94898
March3.49135.00320.3417.307.948079.35192
February13.44129.00334.4218.507.9157210.5842810.82023
January3.40128.00332.3418.907.8438211.05618
2016
December63.33129.00321.0218.807.6992211.1007810.54246
November3.23130.00322.4117.607.615869.98414
October53.29135.00323.2716.607.755058.844959.16485
September3.22137.00337.9517.307.815259.48475
August43.21138.00340.8017.107.839179.260838.42515
July3.60140.00371.4916.108.510537.58947
June33.82142.00408.5714.809.046485.753515.76277
May3.68147.00376.3514.508.727975.77202
April23.58153.00303.8115.008.169726.830277.14868
March3.57144.00276.2215.307.832917.467087
February13.57142.00273.6115.707.786327.9136708.00928
January3.66147.00279.5616.107.995118.104886
2015
December63.65150.00289.7817.208.100609.0993979.55705
November3.60150.00308.6018.208.1852910.01471
October53.67156.00327.9717.708.484969.215049.08207
September3.68157.00333.6217.508.550918.94909
August43.68159.00357.8516.708.756417.943607.69510
July3.80169.00375.7116.609.153417.44659
June33.58178.00335.0316.908.741708.158317.99534
May3.62192.00320.2316.708.867637.83237
April23.75184.00336.6116.509.017887.482127.50415
March3.81172.00357.8316.609.073827.52618
February13.79172.00370.3816.809.144617.655407.99554
January3.81174.00380.0217.609.264328.33569
2014
December63.78183.00431.7320.409.7355010.6645012.02943
November3.58184.00441.3923.009.6056413.39436
October53.56194.00381.5024.909.2809915.6190115.51136
September3.48197.00525.7225.7010.2962915.40371
August43.63209.00490.3024.1010.3614213.7385813.21061
July4.05216.00450.7923.3010.6173112.68265
June34.49222.00501.7223.2011.5459111.6540911.95747
May4.71224.00519.3824.2011.9391312.26087
April24.71206.00514.0125.3011.6530613.6469413.87422
March4.51191.00495.7125.2011.0985014.10150

*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).


Payments

Related Documents
MPP Forms:

Handbook and Recent Notices
  • Handbook 1-MPP Margin Protection Program for Dairy Producers
  • MPP-57 Announcing Extension of Re-enrollment for 2018 Coverage
  • MPP-58 Announcing Deadline Extension of Re-enrollment for 2018 Coverage
  • MPP-59 Announcing MPP-Dairy May 2018 Payment Trigger
  • MPP-60 Announcing MPP-Dairy June 2018 Payment Trigger
  • MPP-61 2018 Premium Balance Due Date Extended for MPP-Dairy