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Dairy Margin Protection Program Seminars

The 2014 Farm Bill provides new insurance options for dairy farms.  Photo credit:  Doug Mayo

The 2014 Farm Bill provides new risk management options for dairy farms. Photo credit: Doug Mayo

The USDA’s Farm Service Agency (FSA) and University of Florida/IFAS Extension are teaming up to offer educational seminars to help dairy farmers understand the new risk management program created for them by the 2014 Farm Bill.  Dairy farmers have until November 28, to sign up for the coverage of their choice for 2015.  Dr. John VanSickle, UF/IFAS Food and Resources Economics Department, and representatives from  FSA will provide an overview of the Margin Protection Program that provides a new financial risk management option for dairy farms.

Dairy Margin Protection Program Seminars

1:00 to 3:00 PM local time

  • October 21st Suwannee Valley Agricultural Extension Center (Host: Mary Sowerby and Elena Toro)

  • October 29th Jackson County Extension Office  (Host: Doug Mayo and Jennifer Bearden)

  • November 4th Highlands County Extension Office  (Host:  Courtney Davis)


The 2014 Farm Bill provides the most comprehensive reform to the U.S. federal dairy farm safety net seen in decades. In place of milk price and revenue support programs the new Farm Bill creates a Margin Protection Program for Dairy Producers (MPP-Dairy). MPP-Dairy is specifically designed to be simple to use and appealing to all dairy producers regardless of management style or business model. First, it provides dairy producers the opportunity to annually self-select coverage levels to protect against declines in national, rather than farm-level, income-over-feed-cost margins. Second, the premium rates are fixed at predetermined levels explicitly written into the Farm Bill. Finally, farms of all sizes can purchase margin protection near their historical maximum levels of milk production.

MPP-Dairy will pay an indemnity to a participating dairy farm when the difference between the national average all-milk price and the formula-derived estimate of total herd feed costs falls below a farmer-selected margin trigger over a defined consecutive two-month period.  Participating dairy operations may choose each year what level of margin protection to purchase for the calendar year. Margin protection is available from $ 4 to $ 8 per hundredweight in 50¢ increments and enrolled producers may receive coverage on 25% to 90% of their milk production history in 5% increments. The participation costs and indemnity payments associated with MPP-Dairy differ depending on these choice variables in the contract design.

John Newton, Department of Agricultural and Consumer Economics, University of Illinois


Resources with more information on the MPP-Dairy Program

2014 MPP-Dairy Program (USDA Fact Sheet)

 The MPP-Dairy Dashboard (Univ. of Illinois Decision Aide)

The Dairy Subtitle of the Agricultural Act of 2014



Author: Doug Mayo – demayo@ufl.edu

Jackson County Extension Director, Livestock & Forages Agent. My true expertise is with beef cattle and pasture management, but I can assist with information on other livestock species, as well as recreational fish ponds.

Doug Mayo

Permanent link to this article: http://okaloosa.ifas.ufl.edu/newsletters/2014/10/17/dairy-margin-protection-program-seminars/