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

• Table 1: MPP-Dairy Production History (PDF)
• Table 2: MPP-Dairy Count of operations by coverage level (PDF)
• Table 3: MPP-Dairy Production History by Coverage Level (PDF)
• Table 4: MPP-Dairy Production History Eligible for Payments (PDF)

Results of 2016 MPP-Dairy Enrollment

• Table 1: MPP-Dairy Production History (PDF)
• Table 2: MPP-Dairy Count of operations by coverage level (PDF)
• Table 3: MPP-Dairy Production History by Coverage Level (PDF)
• Table 4: MPP-Dairy Production History Eligible for Payments (PDF)

Results of 2015 MPP-Dairy Enrollment

• Table 1: MPP-Dairy Production History (PDF)
• Table 2: MPP-Dairy Count of operations by coverage level (PDF)
• Table 3: MPP-Dairy Production History by Coverage Level (PDF)
• Table 4: MPP-Dairy Production History Eligible for Payments (PDF)
• Table 5: MPP-Dairy Percent of history covered by state (PDF)

Prices

Read the details on how the prices below are used in the DMC calculation

Prices

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

*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

• 2018 Monthly Payments Processed

Related Documents

• Fact Sheet
• News Release
• Regulation

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