Wisconsin Ag Connection - Enrollment for 2017 Dairy MPP Program Underway

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Enrollment for 2017 Dairy MPP Program Underway
Wisconsin Ag Connection - 07/01/2016

Dairy farmers can now enroll in the Margin Protection Program for 2017 coverage. The voluntary program provides financial assistance to participating dairy operations when the margin falls below the coverage level selected by the farmer.

The USDA says the MPP gives participating dairy producers the flexibility to select coverage levels best suited for their operation each year. Enrollment began on July 1 and ends on September 30 for coverage in the next calendar year. Participating farmers will remain in the program through 2018 and pay a $100 administrative fee each year.

Margin Protection Program payments are based on an operation's historical production. To complete enrollment, producers must make coverage elections during the enrollment period that provides basic catastrophic protection that covers 90 percent of milk production at a $4 margin coverage level. For additional premiums, operations can protect 25 to 90 percent of production history with margin coverage levels from $4.50 to $8, in 50 cent increments. Once enrolled, dairy operations are required to participate through 2018 by making coverage elections each year.

Meanwhile, the USDA has an online resource available to help dairy producers decide which level of coverage will provide them with the strongest safety net under a variety of conditions. The enhanced web tool, www.fsa.usda.gov/mpptool, allows dairy farmers to quickly and easily combine their unique operation data and other key variables to calculate their coverage needs based on price projections.

Dairy operations enrolling in the program must meet conservation compliance provisions. Producers participating in the Livestock Gross Margin Insurance Program may register for the Margin Protection Program, but this new margin program will only begin once their livestock dairy insurance coverage has ended.

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