More than 23,000 dairy producers – over half of the dairy operations in the country – enrolled in the new Margin Protection Program, created by the 2014 farm law as a replacement to the previous dairy subsidies, said USDA. “Enrollment far exceeded our expectations,” said Agriculture Secretary Tom Vilsack in a statement. He said enrollment in the first year of the program compared favorably to the federally subsidized crop insurance program, which has enrollment rates from 30 percent to 80 percent depending on the crop.
The Margin Protection Program is akin to crop insurance in that dairy farmers can select the level of coverage that they want, beginning with a basic level available for a $100 administrative fee. The program provides financial assistance to participants when the margin – the difference between the price of milk and the cost of feed – falls below the coverage level selected by the farmer.
Signup period for coverage during 2016 will be July 1-Sept 30.