Wisconsin Ag Connection - New Dairy MPP Program Replaces MILC Starting Next Week

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New Dairy MPP Program Replaces MILC Starting Next Week
Wisconsin Ag Connection - 08/29/2014

Though the record high milk prices may not have a lot of dairy farmers thinking about protecting their margins this summer, the USDA is reminding producers that the new voluntary risk management program enacted in the 2014 farm bill becomes effective on September 2. The Margin Protection Program provides financial assistance to participating farmers when the difference between the price of milk and feed costs falls below the coverage level selected by the producer. It replaced the former Milk Income Loss Contract program.

U.S. Agriculture Secretary Tom Vilsack says the USDA has launched a new web tool to help producers determine the level of coverage under the MPP that will provide them with the strongest safety net under a variety of conditions.

"We've made tremendous progress in implementing new risk management programs since the farm bill was signed over six months ago," said Vilsack. "The supplemental tool will empower the nation's 46,000 dairy producers to make decisions that make sense for them."

The online resource can be found at www.fsa.usda.gov/mpptool. It 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 can also review historical data or estimate future coverage based on data projections.

The MPP gives participating dairy producers the flexibility to select coverage levels best suited for their operation. Enrollment begins September 2 through November 28 for 2014 and 2015. Participating farmers must remain in the program through 2018 and pay a minimum $100 administrative fee each year. They also have the option of selecting a different coverage level during open enrollment each year.

Farmers already participating in the Livestock Gross Margin program may register for the Margin Protection Program, but the new margin program will only begin once their Livestock Gross Margin coverage has ended.

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