The Margin Protection Program gives participating dairy
producers the flexibility to select coverage levels best suited
for their operation. Enrollment begins July 1 and ends on Sept.
30, 2016, for coverage in calendar year 2017. Participating
farmers will remain in the program through 2018 and pay a
minimum $100 administrative fee each year. Producers have the
option of selecting a different coverage level during open
enrollment each year.
USDA has a web tool to help producers determine the level of
coverage under the Margin Protection Program that will provide
them with the strongest safety net under a variety of
conditions. The online resource, available at www.fsa.usda.gov/mpptool,
allows dairy farmers to quickly and easily combine unique
operation data and other key variables to calculate their
coverage needs based on price projections. Producers can also
review historical data or estimate future coverage needs, based
on data projections. The secure site can be accessed via
computer, Smartphone or tablet 24 hours a day, seven days a
To complete enrollment, producers must make coverage elections
during the enrollment period and pay the annual $100
administrative fee that provides basic catastrophic protection
that covers 90 percent of milk production at a $4 margin
coverage level. For additional premiums, operations can protect
25 to 90 percent of production history with margin coverage
levels from $4.50 to $8, in 50 cent increments. Once enrolled,
dairy operations are required to participate through 2018 by
making coverage elections each year. Producers can mail the
appropriate form to the producer’s administrative county FSA
office, along with applicable fees without necessitating a trip
to the local FSA office. If electing higher coverage for 2017,
dairy producers can either pay the premium in full at the time
of enrollment or pay 100 percent of the premium by Sept. 1,
2017. Premium fees may be paid directly to FSA or producers can
work with their milk handlers to remit premiums on their behalf.
Also beginning July 1, 2016, FSA will begin accepting
applications for intergenerational transfers, allowing program
participants who added an adult child, grandchild or spouse to
the operation during calendar year 2014 or 2015, or between Jan.
1 and June 30, 2016, to increase production history by the new
cows bought into the operation by the new family members. For
intergenerational transfers occurring on or after July 1, 2016,
notification to FSA must be made within 60 days of purchasing
the additional cows.
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Dairy operations enrolling in the new program must meet
conservation compliance provisions and cannot participate in the
Livestock Gross Margin Dairy Insurance Program.
For more information, visit FSA online at www.fsa.usda.gov/dairy
or stop by your local County FSA office to learn more about the
Margin Protection Program. To find a local FSA office in your
area, visit http://offices.usda.gov.
Please contact your local County FSA Office with any questions
you may have regarding this message.
USDA is an equal opportunity provider, employer and lender. To
file a complaint of discrimination, write: USDA, Office of the
Assistant Secretary for Civil Rights, Office of Adjudication,
1400 Independence Ave., SW, Washington, DC 20250-9410 or call
(866) 632-9992 (Toll-free Customer Service), (800) 877-8339
(Local or Federal relay), (866) 377-8642 (Relay voice users).
[USDA Farm Service Agency]