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Milk Margin program signup

The Wilmot Enterprise of Wilmot, South Dakota

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The sign-up period for the 2016 Milk Margin Protection Program for Dairy producers (MPP-Dairy) is underway and runs from July 1 through Sept. 30, at your local Farm Service Agency (FSA) office.

"The MPP-Dairy program is a voluntary safety net program established by the 2014 Farm Bill that continues through Dec. 31, 2018," said Tracey Erickson, SDSU Extension Dairy Field Specialist.

Erickson explained that the program provides eligible producers with indemnity payments when the difference between an all milk price and average feed cost (the margin), falls below coverage levels producers select on an annual basis.

To be eligible for MPP-Dairy, operations must produce and commercially market milk in the U.S., provide proof of milk production when registering, and not be enrolled in the Livestock Gross Margin for Dairy program (LGM-Dairy). "Eligible dairy operations must register for MPP-Dairy coverage at the FSA office where their records are stored," Erickson said.

When signing up for the program, producers will need to supply the following information.

A production history establishment, which is completed on form CCC-781;

Election of the annual coverage level and completion of the contract on form CCC-782;

Payment of the $100 administrative fee, annually; and

Payment of the premium, if there is a premium owed.

This will be dependent upon the premium level selected. An operation must pay: 1) the premium in full at the timp of annual coverage elecn a minimum of 25 percent of the premium by February 1 of the applicable calendar year of coverage with the remaining balance to be paid by June 1st of the applicable calendar year of coverage.

In mid-August, a collaborative group will host a meeting to explain the parameters of the program, along with showcasing the recently updated MPP-Dairy Risk Management calculator. For dates, times and locations, visit

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Original Publication Date: September 10, 2015

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