U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) Administrator Val Dolcini today announced that almost half of all dairy farms in America have made their annual elections for 2016 coverage under the Margin Protection Program, and reminded producers who have not yet enrolled that they have until Nov. 20, to select coverage.
Established by the 2014 Farm Bill, the program provides financial assistance to dairy producers when the margin — the difference between feed costs and the price of milk — falls below the coverage level selected by the applicant.
“This safety net is not automatic, so producers must visit their local FSA office to enroll before Nov. 20,” said Dolcini. “Despite the best forecasts, the dairy industry is cyclical and markets can change quickly. This program is like any insurance product, where investing in a policy today will protect against catastrophic economic consequences tomorrow.”
FSA estimates that based on current participation rates, had the program existed before the 2014 Farm Bill, producers in 2009 would have invested $73 million in premiums and received $1.44 billion in financial protection during that historically weak market period.… Continue readingRead More »