Margin Protection Program Enrollment Details Announced

On Tuesday, April 3, U.S. Department of Agriculture (USDA) released details regarding the Margin Protection Program for Dairy Producers (MPP-Dairy) sign-up period. Following changes authorized under the Bipartisan Budget Act of 2018, USDA’s Farm Service Agency (FSA) has set the MPP-Dairy enrollment period to begin Monday, April 9, and end June 1.

Dairy producers must make a new coverage election for 2018, even if they enrolled during the previous 2018 sign-up period. All coverage elections made for this year will be retroactive to January 1. All dairy producers desiring coverage must sign up during the enrollment period and submit the appropriate form (CCC-782). For producers not interested in MPP coverage, no action is needed.

As a reminder, dairy producers can participate in FSA’s MPP-Dairy or the Risk Management Agency’s Livestock Gross Margin for Dairy Cattle (LGM-Dairy), but not bothProducers with an active LGM-Dairy policy who have targeted marketings insured in 2018 will be allowed to enroll in MPP-Dairy by June 1, 2018; however, their coverage will start only after active target marketings conclude under LGM-Dairy.

Key changes to MPP-Dairy, which were announced in February, include:

  • MPP-Dairy will now provide all operations $5 margin coverage for no cost on the first 5 million pounds of production (about 217 cows) enrolled in the program. Additionally, premiums for higher levels of margin protection for production under 5 million pounds have been reduced (see chart)
  • Margin calculations will be made monthly, instead of bi-monthly, to ensure the program is more accurate and responsive to challenging markets

The $100 administrative fee will be waived for underserved farmers, which include limited resource, beginning and minority farmers, as well as veterans