Dairy

Tired of Roller Coaster Milk Margins?

November 25, 2014 By Ron Sylvester Leave a Comment

Graphic: USDA FSA

Under the new Farm Bill, the Margin Protection Program for Dairy (MPP-Dairy) provides financial assistance to participating dairy producers when the margin – the difference between the price of milk and the cost of feed – falls below the coverage level selected by the provider.

If you have not done so, visit your local county or regional USDA Farm Service Agency office with your production records by Dec. 5, 2014. When registering, paying only the $100 administrative fee provides basic $4 coverage on 90 percent of your production history. Additional coverage up to $8 margins is available with a premium.

Evaluate your options at www.fsa.usda.gov/mpptool to compare coverage levels based on future projections or look at historical data.

Margin Protection Program Replaces MILC – Enrollment Begins Sept. 2

August 28, 2014 By Ron Sylvester Leave a Comment

USDA has announced that enrollment for the new dairy program – the Margin Protection Program – will begin on September 2.

MPP replaces Milk Income Loss Contracts.

The voluntary program, established by the 2014 Farm Bill, provides financial assistance to participating farmers when the margin – the difference between the price of milk and feed costs – falls below the coverage level selected by the farmer.

National Farmers Union President Roger Johnson commended USDA on their timely rollout of the dairy Margin Protection Program and for including provisions that will help America’s family farmers with their risk management needs.

“America’s family-run dairy farms are in great need for these kind of risk management tools to help them manage risk that is beyond their control,” said Johnson.

“The family farmer provision, included as part of the program, will allow many of this nation’s family-operated dairy farms to breathe a sigh of relief now that they have adequate risk management tools in hand. It is unfortunate that the Congress did not include a dairy stabilization program that would have helped take the volatility out of milk prices,” Johnson added.

USDA also announced the Dairy Product Donation Program (DPDP), which will donate dairy products to low-income people, including food banks, state and local agencies and advocacy organizations.

Dairy farmers should also be aware of an online tool USDA has created to help them determine their level of coverage under MPP. Follow this link to use the tool.

The Margin Protection Program, which replaces the Milk Income Loss Contract program, gives participating dairy producers the flexibility to select coverage levels best suited for their operation. Enrollment begins Sept. 2 and ends on Nov. 28, 2014, for 2014 and 2015. Participating farmers must 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.

Dairy operations enrolling in the new program must comply with conservation compliance provisions and cannot participate in the Livestock Gross Margin dairy insurance program. Farmers already participating in the Livestock Gross Margin program may register for the Margin Protection Program, but the new margin program will only begin once their Livestock Gross Margin coverage has ended.

Call or visit your local USDA Farm Services Agency office to learn more or to enroll in MPP. You can also view or download the USDA’s fact sheet on MPP here.

FSA Update: Margin Protection Program for Dairy Producers

August 5, 2014 By Ron Sylvester Leave a Comment

The following is from USDA Farm Service Agency:

The 2014 Farm Bill authorizes a new dairy program, the Margin Protection Program for Dairy Producers (MPP-Dairy), which will replace the Milk Income Loss Contract (MILC) program no later than September 1, 2014. The MPP-Dairy program is a voluntary program that provides dairy operations with risk management coverage that will compensate producers when the difference between the all-milk price and the average cost of feed falls below a certain level selected by the producers in a dairy operation.

Eligible producers can obtain either a catastrophic level of coverage for their dairy operation by paying a $100 administrative fee annually or they may obtain increased coverage at various levels by paying a premium in addition to the administrative fee. Available price coverage levels begin at $4.00 and coverage may be increased in $.50 increments through $8.00 per hundredweight. Available coverage percentages begin at 25 percent and coverage may be increased in 5 percent increments through 90 percent. A dairy operation’s selection of a $4.00 coverage level with a coverage percentage of 90 is considered the catastrophic level of coverage. Indemnity payments under the program will be triggered when margins fall below the producer-selected levels.

[Read more…]

Farm Bill Update: Boehner’s Issues with Dairy Program One Hurdle

January 21, 2014 By Ron Sylvester 1 Comment

According to our advocates at the National Farmers Union, Ohio’s own House Speaker John Boehner continues to be a fly in the ointment of ongoing Farm Bill conference committee negotiations.

Boehner, who as a member of the House served on the Ag Committee for several years, has described the U.S. Dairy Program as “Soviet-style,” which doesn’t leave a lot of room for compromise. His latest issue according to NFU and media sources revolves around proposed dairy price stabilization measures including dictating how much milk is produced. Supporters of greater price stabilization measures in the dairy industry say supply management is needed to forestall overproduction and price swings to the low end that would endanger the financial viability of dairy farmers. Boehner says that prices for all manner of dairy products are too high due to the Dairy Program and free market reforms are in order.

While Boehner and others propose a “burn the village to save it” mentality on dairy farming, what’s missing from their “reforms” is the very point of the Farm Bill – how do we afford some level of protection to farmers – especially independent producers – from price extremes in the market? There is U.S. commodity supply policy on other agricultural products, what makes dairy different?

NFU also reports that there could still be at least one public conference committee hearing on the Farm Bill featuring current hot button topics such as COOL. It remains important for independent, family farmers and consumers to let their members of Congress and senators know that there is strong support among their constituents for knowing the origin of their food.

While we reported in the last Ohio Country Messenger that the Farm Bill appeared to be heading toward compromise and completion, perhaps by mid-January, here we are with the Congress that can’t get things done. While most members are at home this week, leadership is expected to continue negotiations and there is a chance for a final conference report vote – and an end to the dysfunction – during the last week in January.

Petition to USDA to Adjust Regional Farm Milk Prices

September 25, 2012 By Ron Sylvester Leave a Comment

A special alert from the NFU:

Several dairy organizations are circulating a petition to USDA to convene a national federal milk order pricing hearing in response to severe reductions to net income for dairy farmers in recent months. USDA has statutory powers to enforce emergency milk prices and the current situation calls for action. The petition urges the Secretary to act and a long list of signatories will help to encourage USDA to assert its authority. Please read the “September 3, 2012-Petition…” document for further clarification.

Please consider signing on as an individual by completing the attached petition form and sending it to dana.coale@ams.usda.gov. Another attachment is also included to collect signatures. Both forms are below as downloadable links.

Petition Form

Petition Signatures Form

Ohio’s organic dairy producers and marketers score rare regulatory win over factory farms, ‘Big Ag’

November 6, 2011 By Ron Sylvester 1 Comment

In a little noticed decision one week ago, an Ohio Department of Agriculture dairy labeling rule that was more stringent than federal Food and Drug Administration policy was dropped by the agency to the cheers of family farmers and others involved in the organic dairy industry.

As of 2008, ODA had demanded that dairy producers and marketers attach government-approved qualifying statements to labels when claims such as “Hormone Free” were used on the labels. Organic producers have been especially incensed over the rule because they control their dairy herds’ environment to be free of pesticides and from administering growth and other hormones to dairy cows such as rBST, a synthetic bovine growth hormone routinely given to dairy cattle in factory farming environments.

With the rule, organic dairies had to add statements to their labels that were unfair – and many would say unfounded – qualifiers. Now, USDA Certified Organic producers will be able to tout that fact on their labels as well as letting consumers know, without qualification, that their product is hormone free.

“Ohio’s abandonment of this misguided rule is a victory for consumers, farmers and manufacturers alike,” said Christine Bushway, CEO of the Organic Trade Association. (OTA)

“The organic label is a federally regulated program that provides consumers with the knowledge that their food is produced without the use of antibiotics, pesticides or added growth hormones. Consumers have the right to make informed choices about the foods they eat, and farmers and manufacturers can continue to communicate truthfully with consumers” Bushway added.

[Read more…]

A special alert from the NFU:

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