MARGIN PROTECTION PROGRAM

Protecting your bottom line in a volatile market such as dairy can be quite the challenge. Dairy farmers need to consider all the tools and resources that are available to them to make the best use of what the industry offers.

The Margin Protection Program was introduced with the 2014 Farm Bill as a means to protect dairy farmers from disaster years, similar to what was experienced in 2012 and even more so in 2009.

Basic Program Information

Signup for MPP-Dairy for 2017 takes place from July 1st through December 16, 2016 All producers who want coverage for 2017 must register by completing form CCC-782, elect a coverage level, and pay the $100 administrative fee by December 16th. If the operation participated in MPP for 2016, the operation's production history will be increased by a factor of 1.0134.

Payments under the Margin Protection Program for Dairy Producers (MPP-Dairy) may be reduced by a certain percentage due to a sequester order required by Congress and issued pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985. Should a payment reduction be necessary, FSA will reduce the payment by the required amount.

Visit dairymarkets.org/MPP/Tool/ to evaluate your participation at various levels of the program, and visit http://www.futurefordairy.com/ to evaluate what various market conditions could mean for your margin.

MPP

Additional Resources