USDA Launching A New Dairy Margin Protection Program

(WASHINGTON, DC) Times are tough in the agriculture industry, including America’s dairy operations. Anyone watching trends in the dairy industry over the last decade knows the sector continues to face substantial challenges, including fluctuations in commodity prices, inclement weather, and trade negotiations. USDA offers a variety of risk management, disaster assistance, loan, and conservation programs to help agricultural producers in the United States weather ups and downs in the market and recover from natural disasters, as well as invest in their operations. Among these safety net programs is the new Dairy Margin Coverage program, which was created by the 2018 Farm Bill and replaces its predecessor, the Margin Protection Program for Dairy. This voluntary program, offered by USDA’s Farm Service Agency, provides financial 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. Sign-up for the new program begins on June 17, providing coverage retroactive to January 1st, with applicable payments following soon after enrollment.