Enrollment for 2016 Dairy MPP Program Underway
Dairy farmers can now enroll in the Margin Protection Program for 2016 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 2016. 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. An operation's historical production will increase by 2.61 percent in 2016 if the operation participated in 2015.
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.