New program insures farmers’ margins
The U.S. Department of Agriculture Farm Service agency began a new program in July designed to protect dairy farmer’ production margins, according to a news release.
The Margin Protection Program for Dairy is a voluntary program that offers financial assistance to participating dairy producers when the margin between the price of milk and feed costs falls below a certain coverage level selected by the farmer.
Enrollment for 2017 coverage under the new program began July 1 and continues through Sept. 30.
To enroll, farmers need to choose their level of coverage. The USDA offers a web took to do so at www.fsa.usda.gov/mpptool. The program costs $100 in administrative fees that cover basic catastrophic protection – 90 percent of milk production at a $4 margin coverage level.
For additional premiums, dairymen can protect 25 to 90 percent of their produce with margin coverage levels from $4.50 to $8 at 50 cent increments.