Dairy Margin

USDA Extends Application Deadline for Dairy Margin Protection Program to Dec. 19

 

Dairy producers urged to act now to protect their businesses against unpredictable market swings by taking advantage of increased protections offered in first year of program

 

U.S. Department of Agriculture Secretary Tom Vilsack has just announced that the application deadline for the dairy Margin Protection Program will be extended until Dec. 19, 2014.  The program, established by the 2014 Farm Bill, protects participating dairy producers when the margin – the difference between the price of milk and feed costs – falls below levels of protection selected by the applicant.

 

"The 2014 Farm Bill created these safety net programs to provide safeguards against the uncertainty of weather and markets, but this safety net is not automatic. Producers must visit their local Farm Service Agency office to enroll before December 19," said Vilsack. "Despite the best forecasts, weather and markets can change, so a modest investment today can protect against unexpected losses tomorrow."

 

"For just $100, a farmer can cover 90 percent of production at $4 margin swings, and with affordable incremental premiums, dairy farmers can cover up to $8 margin swings," said Vilsack. "Those who apply this year will receive a slight increase in production protection that will not be available in the future. Farmers who do not sign up for the Margin Protection Program for 2015 will forfeit the 1 percent base production increase. For a 400 cow operation, this would equate to an additional 80,000 pounds of milk that are eligible for coverage. It's a small step to take to ensure your business is covered."