Tuesday, December 9

USDA Extends Application Deadline for Dairy Margin Protection Program to Dec. 19


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."

Vilsack encourages producers to use the online Web resource at, http://www.fsa.usda.gov/mpptool 
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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