Milk Loss

The U.S Department of Agriculture (USDA) today announced Milk Loss Program (MLP) assistance for eligible dairy operations for milk that was dumped or removed, without compensation, from the commercial milk market due to qualifying weather events and the consequences of those weather events that inhibited delivery or storage of milk (e.g., power outages, impassable roads, infrastructure losses, etc.) during calendar years 2020, 2021 and 2022. Administered by the Farm Service Agency (FSA), signup for MLP begins Sept. 11 and runs through Oct. 16, 2023. 

 

“Frequent and widespread weather-related disasters over the past three years have impacted U.S. dairy. These producers continue to face supply chain issues, high feed and input costs, labor shortages, and market volatilities,” said FSA Administrator Zach Ducheneaux. “The reality for dairy producers is that cattle are milked at least twice a day, producing on average, six to seven gallons of milk per cow, per day. That milk must go somewhere, and when it can’t get where it needs to go and can’t be stored due to circumstances beyond a producer’s control we need to help. The Milk Loss Program will help offset the economic loss by producers left with no other choice but dumping their milk during disasters.” 

 

Background  

  

On Dec. 29, 2022, President Biden signed into law the Extending Government Funding and Delivering Emergency Assistance Act (P.L. 117-43), providing $10 billion for crop losses, including milk losses due to qualifying disaster events that occurred in calendar years 2020 and 2021.  Additionally, the Disaster Relief Supplemental Appropriations Act, 2023 (Pub. L. 117-328) provides approximately $3 billion for disaster assistance for similar losses that occurred in calendar year 2022.   

 

Eligibility 

 

MLP compensates dairy operations for milk dumped or removed without compensation from the commercial milk market due to qualifying disaster events, including droughts, wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze (including a polar vortex), and smoke exposure that occurred in the 2020, 2021 and 2022 calendar years. Tornadoes are considered a qualifying disaster event for calendar year 2022 only.