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US Dairy Farmers Get More Assistance to Protect Margins

06 July 2016

US - New materials have been unveiled to assist US dairy producers considering enrolment in the third year of the federal dairy safety net Margin Protection Programme (MPP).

The new materials are available at the National Milk Producers Federation (NMPF) website

The MPP provides financial assistance to participating dairy producers when the margin – the difference between the price of milk and feed costs – falls below a coverage level selected by the producer.

The enrolment period officially opened 1 July and ends 30 September 2016, for coverage in calendar year 2017. Farmers already participating in the program can change their coverage level during this three-month enrolment window. Dairy farmers can insure their farms on a sliding scale between $4 and $8 per hundredweight.

“The poor margins in the first half of 2016 demonstrate that the Margin Protection Programme can play an important role in helping America’s dairy farmers manage their financial risks,” said Jim Mulhern, president and CEO of NMPF.

“While we continue to examine ways to improve the programme in the future, farmers need to carefully consider their risk management coverage options in 2017.” 

According to the USDA, 54 per cent of America’s 43,000 dairy farms are enrolled in the MPP, representing 80 per cent of the nation’s milk supply. 

TheCattleSite News Desk

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