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Margin Protection Program
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Sign-up Period for 2018 Milk


September 1 - December 15, 2017


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. 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 dollat amount selected by the producer.

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. 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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