Farm Bill MPP-Dairy Sign-Up Underway

Jul 27, 2015

By Tracey Erickson

Dairy producers are reminded that the sign-up period for the 2016 Milk Margin Protection Program for Dairy producers (MPP-Dairy) is underway and runs from July 1-September 30, 2015 at your local FSA office.

The MPP-Dairy program is a voluntary safety net program established by the 2014 Farm Bill that continues through December 31, 2018. The program provides eligible producers with indemnity payments when the difference between an all milk price and average feed cost (the margin), falls below coverage levels producers select on an annual basis.

To be eligible for MPP-Dairy, operations must produce and commercially market milk in the U.S., provide proof of milk production when registering, and not be enrolled in the Livestock Gross Margin for Dairy program (LGM-Dairy).

Eligible dairy operations must register for MPP-Dairy coverage at the FSA office where their records are stored. Producers will need to supply the following information when signing up for the program.

A production history establishment, which is completed on form CCC-781.
Election of the annual coverage level and completion of the contract on form CCC-782.
Payment of the $100 administrative fee, annually.
Payment of the premium, if there is a premium owed. This will be dependent upon the premium level selected.

An operation must pay: 1) the premium in full at the time of annual coverage election OR 2) a minimum of 25 percent of the premium by February 1 of the applicable calendar year of coverage with the remaining balance to be paid by June 1st of the applicable calendar year of coverage.

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