The program protects dairy producers by paying them based on the difference between the national all-milk price and the national average feed cost. Several changes have been made to the safety net program to provide better protections for dairy producers from shifting milk and feed prices.
Updates to the program include:
- Calculation 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 socially disadvantaged producers. Dairy operators enrolled in the previous 2018 enrollment period that qualify for this exemption under the new provisions may request a refund.
Signup for 2018 will be retroactive to January 1, of this year. Margins for February and March 2018 have already been announced and payments for those months, along with potential payments for April, will be issued in June based on producer elections.
All dairy operations must make new coverage elections for 2018, even if the operation was enrolled during the previous 2018 signup period. Dairy producers should use the MPP-Dairy Decision Tool for support in making related enrollment decisions.
All dairy operations interested in MPP-Dairy coverage must sign up during the enrollment period and submit form CCC-782 to FSA to enroll (form available on this page from USDA). Dairy operations may still “opt out” by not submitting a form.
Free webinar available
A webinar that details some of the updates and changes to the program featuring Dr. Marin Bozic of the University of Minnesota is available. Click here to view the webinar. You will need to enter your name and email address, but there is no charge.