Dairy Margin Protection Program Enrollment Now Open

Dairy Margin Protection Program Enrollment Now Open

Dairy farmers can now enroll in the USDA Dairy Margin Protection Program. This voluntary program provides financial assistance to participating dairy operations when the margin falls below the coverage level selected by the farmer.
Farm Service Agency Program Specialist Dawn Scott shares it is completely up to each dairy producer to determine their level of price protection.
Scott: “It is totally up to the dairy operations and what they would need. There are going to be some dairy operations that can withstand a period of lower milk prices and higher feed costs but there are going to be some dairy operations where it won’t take very long in an economic downfall with the milk program that they will be in trouble. So, some dairy operations are going to be able to sit back and watch the market and then decide and say, ‘We’re getting to a point where I’m going to have to mitigate my financial losses.’ They may at that time, choose to enroll in the program initially. Once you enroll initially then you are in for the reminder of the Farm Bill until 2018. But they could still set at the basic coverage level or they could choose buy up if they feel like they need to protect their farm a little bit more. It is going to be each dairy farm’s operation on what they can withstand as far as falling market prices and increasing feed costs.”
Program enrollment closes on September 30th.

 

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