Baton Rouge, LA - U.S.
Department of Agriculture Secretary Tom Vilsack has announced that the
application deadline for the dairy Margin Protection Program (MPP) will be
extended until Dec. 19, 2014. The program, established by the 2014 Farm Bill,
protects participating dairy producers when the margin - the difference between
the price of milk and feed costs - falls below levels of protection selected by
the applicant.
"The
2014 Farm Bill created these safety net programs to provide safeguards against
the uncertainty of weather and markets, but this safety net is not automatic.
Producers must visit their local Farm Service Agency office to enroll before
December 19," said Vilsack. "Despite the best forecasts, weather and
markets can change, so a modest investment today can protect against unexpected
losses tomorrow."
"For
just $100, a farmer can cover 90 percent of production at $4 margin swings, and
with affordable incremental premiums, dairy farmers can cover up to $8 margin
swings," said Vilsack. "Those who apply this year will receive a
slight increase in production protection that will not be available in the
future. Farmers who do not sign up for the Margin Protection Program for 2015
will forfeit the 1 percent base production increase. For a 400 cow operation,
this would equate to an additional 80,000 pounds of milk that are eligible for
coverage. It's a small step to take to ensure your business is covered."
to calculate the best levels of coverage for their dairy operation. They can type in specific operation data and explore price projections and market scenarios to determine what level of coverage is best for them. They can also compare the data to see how the program would have helped in previous years, such as 2008, when margins dropped from $8 to $3 in just three months. The online resource is on a secure website that can be accessed from computers, mobile phones or tablets, 24 hours a day, seven days a week.
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Contact:
LaKeeshia D. Giddens
(225) 771-2160
lakeeshia_giddens@suagcenter.com
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