The Agriculture Department said it sent $11.2 million in a monthly payment to dairy farmers through the insurance-like Margin Protection Program, calculated at the highest payment rate since MPP began in 2014. A week ago, 61 lawmakers urged USDA to respond to low milk prices through larger federal purchases of dairy products and to “offer financial assistance that will directly support U.S. dairy farmers equally.”
“We understand the nation’s dairy producers are experiencing challenges due to market conditions,” said Agriculture Secretary Tom Vilsack, who urged producers to enroll in the subsidy program for 2017. Enrollment ends on Sept 30.
MPP payments are triggered when the national average price for milk and livestock feed is lower than the trigger selected by producers. Coverage is free beyond a $100 fee for MPP payments when the difference between feed and milk prices is below $4 per 100 pounds of milk. Farmers can get protection up to an $8 difference but must pay a premium for it.