Registration for new dairy program begins
FSA recently announced that starting today farmers can enroll in the new dairy Margin Protection Program.
The voluntary program, established by the 2014 Farm Bill, provides financial assistance to participating farmers when the margin — the difference between the price of milk and feed costs — falls below the coverage level selected by the farmer.
The U.S. Department of Agriculture (USDA) also launched a new web tool to help producers determine the level of coverage under the Margin Protection Program that will provide them with the strongest safety net under a variety of conditions.
The online resource, available at www.fsa.usda.gov/mpptool, allows dairy farmers to quickly and easily combine unique operation data and other key variables to calculate their coverage needs based on price projections.
Producers also can review historical data or estimate future coverage based on data projections. The secure site can be accessed via computer, Smartphone, tablet or any other platform, 24 hours a day, seven days a week.
Development of the online resource was led by the University of Illinois, in partnership with the USDA and the Program on Dairy Markets and Policy (DMaP). DMaP partners include the University of Illinois, the University of Wisconsin, Cornell University, Pennsylvania State University, the University of Minnesota, Ohio State University and Michigan State University.
The Margin Protection Program, which replaces the Milk Income Loss Contract program, gives participating dairy producers the flexibility to select coverage levels best suited for their operations.
Enrollment begins today and ends Nov. 28 for 2014 and 2015. Participating farmers must remain in the program through 2018 and pay a minimum $100 administrative fee each year.
Producers have the option of selecting a different coverage level during open enrollment each year.
Dairy operations enrolling in the new program must comply with conservation compliance provisions and cannot participate in the Livestock Gross Margin dairy insurance program.
The Margin Protection Program final rule was published in the Federal Register on Aug. 29.
The Farm Service Agency (FSA), which administers the program, also will open a 60-day public comment period on the dairy program.
The agency wants to hear from dairy operators to determine whether the current regulation accurately addresses management changes, such as adding new family members to the dairy operation or inter-generational transfers.
Written comments must be submitted by Oct. 28 at
www.regulations.gov.Local dairy producers will soon be receiving information in the mail. Interested dairy producers may want to contact the FSA office at 724-482-4800, Ext. 2, and schedule an appointment to review different coverage levels for their specific operation.
Luke Fritz is executive director of the Butler County Farm Service Agency.
