Margin Protection Program-Dairy 2016 Sign Up

The note below is from a news release posted by USDA’s Farm Service Agency. It discusses the open enrollment period for MPP-Dairy that began 1 July 15. This program is intended to assist in managing margin risk for diary producers. The margin calculation is not for an individual dairy farm but does allow  some measure of insurance against steep in margin as dairy producers experienced in 2009.

“2016 Enrollment Open of MPP-Dairy

Producers have the option of selecting a different MPP-Dairy coverage level during open enrollment each year. So far in 2015, only dairy farmers “buying-up” coverage at the $8.00/cwt. level have received any indemnity payments, partially offsetting premium costs.

In addition to margin levels selected, MPP-Dairy payments are based on an operation’s historical production. A dairy operation’s historical production will increase by 2.61% in 2016 if the operation participated in 2015.

USDA has an online resource available to help dairy producers decide which level of coverage will provide them with the strongest safety net under a variety of conditions. The enhanced Web tool, available at, allows dairy farmers to quickly and easily combine their unique operation data and other key variables to calculate their coverage needs based on price projections. Producers can also review historical data or estimate future coverage based on data projections. The secure site can be accessed via computer, mobile phone, or tablet, 24 hours a day, seven days a week.

Producers must submit form CCC-782 for 2016, confirming their Margin Protection Program coverage level selection, to the local Farm Service Agency (FSA) office. If buying coverage above the $4.00/cwt. catastrophic level for 2016, dairy producers can either pay the premium in full at the time of enrollment, or pay a minimum of 25% of the premium by Feb. 1, 2016.

For more information, visit FSA online at for more information, or stop by a local FSA office.”


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