House Agriculture Committee Formally Introduces 2018 Farm Bill

Yesterday the House Agriculture Committee introduced its version of the 2018 Farm Bill, as reported by Bob Gray of the Northeast Dairy Cooperatives.  He provides this brief summary of the highlights of the Dairy Title.

  • Margin Protection Program (MPP) Start 2019:

 Producer Premiums for the first 5 million pounds of milk*

Coverage Level                                Premium per cwt 

$4.00                                                            None
$4.50                                                            $0.002
$5.00                                                            $0.005
$5.50                                                            $0.008
$6.00                                                            $0.010
$6.50                                                            $0.017
$7.00                                                            $0.041
$7.50                                                            $0.057
$8.00                                                           $0.090
$8.50                                                            $0.120
$9.00                                                            $0.170

(higher rates apply to milk over 5 million lbs.)

 *NOTE:  these rates will only apply to 2019 if the Farm Bill as introduced is enacted.  The current rates for 2018 remain in place for use by producers signing up by June 1, 2018.

 Producers can enroll between zero and 90 per cent of their annual production as opposed to the current 25% to 90% requirements in place now.

MPP payments will be calculated on a monthly basis as opposed to a bi-monthly basis.

Allows producers to use both the MPP and the Livestock Gross Margin Dairy Insurance Programs at the same time as long as it does not cover the same milk.

  • Class I Skim Milk Price:

Changes the calculation for determining the Class I Skim Milk Price by removing the “higher of” provision in setting the Class III and Class IV price under the Federal Milk Marketing Orders.

Adds an average of the advanced pricing factors plus $0.74.

  • Extends the Dairy Forward Pricing Program
  • Extends the Dairy Indemnity Program
  • Extends the Dairy Promotion and Research Program