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Alabama Dairy Margin Protection Program Meeting

dairy cows MPPTuesday, November 18, 2014

9:30 – 12:00

Jon Archer Agricultural Center (Large Auditorium)

1070 Schillinger Road

North Mobile AL 33608 agenda and sponsors

On August 28, 2014, the U.S. Department of Agriculture announced details for a long-awaited and much-improved safety net for dairy farmers. Developed by the National Milk Producers Federation and five years in the making, the new Dairy Margin Protection Program, or MPP, is the most significant rewrite of dairy policy in more than a generation. Sign-up started September 2, 2014, and continues through Friday, December 5.  Note that this is a one-week extension from the previous sign-up deadline of November 28, 2014.

How the DMPP Works: 

The program will operate on a calendar-year basis, starting in 2015.

  • All farms that produce milk commercially are eligible, and the program benefits all producers equally, regardless of size.
  • Producers will insure their operations on a sliding scale, deciding both how much of their production to cover, and the level of margin to protect.
  • A three-month sign-up period begins September 2 at local USDA Farm Service Agency offices. Producers have until November 28 to sign up for coverage for the last four months of 2014, for calendar year 2015, or both. Starting in 2015, the sign-up period for future years will be from July 1 to September 30.
  • Initially, there will be two options for paying premiums: pay the full premium at sign-up, or pay 25 percent on February 1 and the remaining 75 percent on June 1.
  • Producers are able to enroll in the program for any year between 2014 and 2017. Once a producer enrolls, however, he or she is committed to be in the program each
    subsequent year until the expiration of the 2014 farm bill. Producers can annually adjust their coverage – that is, both the milk volume they want to cover and the margin level.
  • Each year producers will pay a $ 100 registration fee. After payment of the registration fee, basic margin coverage of $ 4 per hundredweight is free. Above the $ 4 margin level, coverage is available in $ .50/cwt. increments for varying premiums

If you haven’t attended a local meeting, there is another opportunity for you to learn about this program.  Alabama A&M and Auburn Universities are partnering with ALFA and USDA FSA to offer a Dairy Margin Protection Program meeting in Mobile.

 

The National Milk Producers Association has a very informative publication that outlines more details of the program.  

Introducing the Dairy Producer Margin Protection Program

USDA-FSA has also developed some tools that will help dairy farmers to make decisions based on the different options available.

Margin Protection Program Decision Tool

 

PG

Author: Libbie Johnson – libbiej@ufl.edu

Agriculture agent at UF IFAS Escambia County Extension.
http://escambia.ifas.ufl.edu/

Libbie Johnson

Permanent link to this article: http://okaloosa.ifas.ufl.edu/newsletters/2014/11/15/alabama-dairy-margin-protection-program-meeting/