The 2014 Farm Bill changed the government's dairy farm support programs to a new program that is insurance based. The new revenue insurance type of program is called the Margin Protection Program for Dairy or MPP. The previous program, known as the Milk Income Loss Contract, or MILC, was replaced by MPP. A sign-up period is underway for MPP program participation in 2016. Dairy farmers have until Sept. 30 to sign up at designated Farm Service Agency offices.
2014 Farm Bill created this new financial safety net program
Dairy farmers interested in the MPP program have an opportunity to learn more about it on Friday, Sept. 11 at 10 a.m. via a live webinar to be held at two locations in northeast Iowa. The first site is at Iowa's Dairy Center, located at Calmar. The webinar will be held in Room 115 of the Dairy Center at 1527 Hwy. 150 South in Calmar. Robert Tigner, a University of Nebraska Extension farm management specialist, will present a new analysis of the MPP program, as well as provide information about it.
Contact the ISU Extension and Outreach office in your county by Sept. 7 to register for this meeting. Or you can call 563-382-2949 to reserve your seat at the Calmar site or email Jennifer Bentley, ISU Extension dairy specialist [email protected].
The same live webinar featuring Tigner will be broadcast Sept. 11 at 10 a.m. at a second location, also in northeast Iowa. It's at the ISU Extension office for Dubuque County, 14858 West Ridge Lane, Dubuque, Iowa. To attend this meeting at the Dubuque office you can register by calling 563-583-6496 or email [email protected].
Milk price, feed cost used to calculate a "U.S. milk margin"
MPP is an insurance-based 2014 Farm Bill program that allows dairy farmers an opportunity to protect against declines in the difference between a two-month average U.S. milk price and a two-month average feed cost. The 2014 Farm Bill specifies how milk price and feed cost is determined and how each of these factors is used to calculate a "U.S. milk margin."
Dairy farmers can select margin coverage from $4 to $8 in 50-cent increments. Farmers also choose the amount of historic milk production covered from 25% to 90% in 5% increments. MPP premiums for 2016 have two tiers of cost, less than 4 million pounds of milk production covered and 4 million and above. Premiums must be paid either fully at coverage election time or 25% by Feb. 1 with the remainder by June 1.
For more information about this ISU Extension meeting or other programming in the northeast Iowa area visit extension.iastate.edu/dubuque.