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Margin Protection Program
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Sign-up Period for 2017 Milk


September 30 - December 16, 2016


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 dollar 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. A minimum administrative fee of $100 is required to be paid for each covered year through the duration of the program. 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: (1) the premium in full at the time of annual coverage election; or (2) a minimum of 25% of the premium by Feb 1 of the applicable calendar year of coverage, with the remaining balance due no later than June 1 of the same calendar year.

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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