New Dairy Farm Risk Management Program

I'm Lacy Gray with Washington Ag Today.

Starting September 2 dairy producers can sign-up for the new Margin Protection Program established by the 2014 Farm Bill. Ag Secretary Vilsack says there is a new web based tool to help producers understand whether this new program is in their best interest.

VILSACK: This web-based tool will give producers the ability to take a look at their operation in the context of this protection program and make sure that it makes sense for them to get involved. We will also be working with our state extension service in each state and our FSA offices to conduct a state by state outreach program, which will be individualized to each state. FSA employees at the county offices have also begun being trained on the use of the web-based tool.

The base price for producers to participate in the Margin Protection Program, which replaces the Milk Income Loss Contract Program, will be $100 per farm per year. The new program will provide financial assistance to participating producers when the margin, the difference between the price of milk and feed costs, falls below the farmer's selected coverage.

VILSACK: While prices are good this year and we expect and anticipate that they will continue to be good next year - well above the threshold for the triggering of the catastrophic coverage - for a hundred dollars folks may be wise to get engaged and involved in this program just as a safety measure and to learn how it can operate because this program is obviously going to be in effect for the length of the Farm Bill.

Enrollment for the Margin Protection Program begins September 2 and ends on November 28 for 2014 and 2015. For more detailed information on this program and the new Dairy Product Donation Program producers should contact their local Farm Service Agency representative.

That's Washington Ag Today.

I'm Lacy Gray on the Ag Information Network.