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2018 registration and re-enrollment period


The registration and re-enrollment period for coverage year 2018 begins April 9, 2018 and continues through June 1, 2018. Dairy farms must make a new coverage election for 2018 even if you enrolled during the previous 2018 signup period. Coverage elections made for 2018 will be retroactive to January 1, 2018.


Overview


The Margin Protection Program for Dairy (MPP-Dairy) is a voluntary risk management program for dairy producers authorized by the Agricultural Act of 2014 (2014 Farm Bill) through Dec. 31, 2018. Significant changes to MPP-Dairy for the 2018 coverage year are further authorized by the Bipartisan Budget Act of 2018. The MPP-Dairy offers protection to dairy producers when the difference between the all milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.

Changes to MPP-Dairy


Based on feedback from dairy farmers, Congress made several changes to MPP-Dairy in the Bipartisan Budget Act of 2018, including:

  • Calculations of the margin period is monthly rather than bi-monthly.
  • Covered production is increased to 5 million pounds on the Tier 1 premium schedule and premium rates for Tier 1 are substantially lowered.
  • An exemption from paying an administrative fee for limited resource, beginning, veteran and disadvantaged farmers. Dairy farms enrolled in the previous 2018 enrollment period that qualify for this exemption may request a refund.

Registration


Eligible dairy operations must register for coverage at the Farm Service Agency (FSA) office where their farm records are maintained. An administrative fee of $100 is required to be paid for each covered year through the duration of the program, except that this will not apply for dairy operations that opt out for the 2018 coverage year. It may also be waived in some cases. Additional fees may apply for higher coverage levels.

Premiums


A participating dairy operation will pay a premium based on the level of coverage elected. Premiums will be calculated by multiplying the coverage percentage selected (from 25% to 90%) multiplied by the production history of the dairy operation to obtain a covered milk marketings. An operation must pay either: (1) the premium in full at the time of annual coverage election; or (2) 100% of the premium by Sept. 1 of the applicable calendar year of coverage.

Current Margin Protection Program prices




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Historical MPP prices




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References


FSA - MPP Decision Tool FSA - MPP Prices DMaP - Home Page MPP Fact Sheet DMAP – MPP Financial Stress-Test Calculator User Guide

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