USDA Secretary Sonny Perdue on Tuesday announced that the department would reopen enrollment in the Margin Protection Program for Dairy (MPP-Dairy). MPP-Dairy pays participating dairy farmers when the difference between the national all-milk price and the national average feed cost, or the margin, falls below a certain dollar amount elected by the producer. Eligible dairy producers may sign-up for varying levels of program coverage between April 9 and June 1, 2018.

The program terms for MPP-Dairy coverage were changed by Congress as part of the recently enacted Bipartisan Budget Act of 2018 which funds federal government operations through September 30, 2018.  In particular, Congress lowered premiums for coverage applicable to a producer’s first 5 million pounds of production.  In addition, the $100 administrative fee for program participation will be waived for underserved producers, such as producers with limited resources, beginning farmers, veterans and disadvantaged producers.

IDFA has expressed strong support for the MPP-Dairy program changes that were included in the funding package, including a separate provision that would eliminate the funding cap for USDA underwriting costs associated with livestock insurance products.

For more information, please contact Dave Carlin, IDFA senior vice president of legislative affairs and economic policy, at dcarlin@idfa.org.