The U.S. Department of Agriculture Friday announced that dairy producers who elected to participate in the Livestock Gross Margin for Dairy Cattle Program now may participate in the Margin Protection Program for Dairy for 2018 coverage.
Sign-ups will take place March 25 through May 10.
Producers enrolled in 2018 LGM-Dairy, administered by USDA’s Risk Management Agency, previously were determined by the 2014 Farm Bill to be ineligible for coverage under MPP-Dairy, a safety net program available through USDA’s Farm Service Agency.
The MPP-Dairy program is designed to protect dairy producers when the difference between the national all-milk price and the national average feed cost — the margin — falls below a certain dollar amount selected by the producers in a dairy operation. LGM-Dairy is an insurance product that provides protection when feed costs rise or milk prices drop. The gross margin is the market value of milk minus feed costs.
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