ONEONTA, N.Y. — Dairy farmers may be able to get money back from the revised Margin Protection Program (MPP) this month, but they have to sign up before June 1st in order to benefit. Farm Service Agency (FSA) representatives in each county office across New York State are available to meet with dairy farmers to discuss the program and its anticipated returns for each particular farmer and help farmers sign up if they are not already enrolled. Interested dairy farmers should contact their FSA representatives at the numbers below to sign up today!
The Margin Protection Program for Dairy is a voluntary risk management program for dairy producers authorized by the 2014 Farm Bill. The intent of the program is to offer protection to dairy producers when the difference between the milk price and the average feed cost (the margin) falls below a certain dollar amount. Significant changes to the Margin Protection Program were authorized in the Bipartisan Budget Act of 2018. These significant changes impact how farmers will benefit from the program for the entire 2018 calendar year, including the previous months. Farmers who had not signed up for the Margin Protect Program to date can sign up now and receive coverage dating back to January 1, 2018.
Farmers can learn more about what they may expect by participating in the program by plugging in their production numbers at https://dairymarkets.org/MPP/
Phoebe Scheiner, Executive Director of the Center for Agricultural Development & Entrepreneurship (CADE) says, “We know that farmers have been disappointed by the Margin Protection Program (MPP) in the past and we understand that the program itself is imperfect and a work in progress. However, considering the dire situation of our local dairy farmers, I want to make sure that dairy farmers in our area take advantage of this important opportunity to get an injection of cash when they need it most. Never before have dairy farmers been able to join MPP with known margins that will guarantee you a return. If you are a dairy farmer or you know a dairy farmer, please make sure to call your FSA representative today to explore the option of participating in this program.”
David Balbian, the Area Dairy Management Specialist at Cornell Cooperative Extension says,
“ Dairy producers who can cover their production history under what FSA calls Tier 1 pricing will be literally guaranteed a monetary benefit from this program. The program is retroactive to January 1. That being said, enough months have passed where the margins are known. They will pay back more than the premium due (for the $8.00 margin coverage). There are economic tools available that project what future payments will be based on futures prices for milk & feed. It’s basically a moving target. As of today the projection is that a farm that can cover exactly 5 million pounds of production history will pay $7,200 in premium costs, will receive $23,168 in program payments, for a net benefit of $16,168. It’s a real no-brainer. All dairy producers, including organic dairy producers, should participate in this program. The numbers will be different for all farms, depending on their production history.”
Dairy farmers, call your local FSA office and make an appointment today to learn more about what income you can expect before you sign up for the program. Your FSA representatives will let you know what you need to bring with you to your appointment. You must sign up by June 1st, so please do not miss this opportunity. Call today!
Delaware County FSA: (607) 865-4005
Otsego County FSA: (607) 547-8131
Schoharie County FSA: (518) 295-8600
Look up other FSA offices here:
–Center for Agricultural Development & Entrepreneurship
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