Dairy MPP Payments Triggered

Last week USDA announced that nearly $11.2 million in financial assistance to American dairy producers enrolled in the 2016 Margin Protection program or MPP. The payment rate for May/June 2016 will be the largest since the program began in 2014. The narrowing margin between milk prices and the cost of feed triggered the payments, as provided for by the 2014 Farm Bill.
USDA Farm Service Agency Administrator Val Dolcini explains how the Margin Protection Program, like other farm safety net programs, can assist dairy farmers at certain times.
Dolcini: “May and June numbers are what triggered the payments we announced. Most dairy operations are still learning about MPP to some degree. It is different from previous Farm Bill programs and it is a risk management tool at the end of the day — it is an insurance policy and that is how it should be viewed. I think that dairy operations that want to protect their economic viability and want to ensure that there is a certain degree of coverage for when prices do decline as they have over the past number of months that there is a program available for them. It is important for them to learn as much as they can to make an educated decision. Many dairies around the nation raise their own grain, hay, corn to feed their cows and so they already be participating in other FSA programs like ARC and PLC — which play an important role in farmers’ safety net. MPP is right along side them.”