MONROE - It's been called complex, but not complicated.
Enrollment for the new dairy risk management program has started in Wisconsin, but there's good reason for dairy farmers to hold off until they can attend one of the informational meetings next week, held by the Green County Farm Services Administration.
Green County FSA Director Teresa Zimmer said the meetings will cover the basics of the new program and give producers information they need to make a decision about enrolling their dairy operation.
The new program replaces the old Milk Income Loss Contract program. The final federal rule implementing regulations for the program was published Aug. 29.
Because of the many changes coming with the new program, Zimmer encourages all dairy producers to attend an information meeting.
The Agricultural Act of 2014 (Farm Bill) refers to the program as the Margin Protection Program for Dairy Producers. USDA is calling the program MPP-Dairy, or sometimes more simply as MPP.
The general purpose of the program is to give milk producers a cash benefit during periods of low price margins, or what is sometimes called "milk income over feed costs." It is not a price support program. The federal policy doesn't try to change the price of milk or the price of feeds. The program has sometimes been referred to, incorrectly, as margin insurance.
MPP calculates an "income over feed cost," in which both the price of milk and cost of feeds are calculated for selling or producing 100 pounds of milk. MPP allows farmers to pick how low the national margin indicator has to go before they get a benefit, provided they are willing to pay for higher levels of benefits. The national indicator is calculated from monthly U.S. price data for milk, corn, alfalfa hay and soybean meal.
MPP provides coverage that will pay dairy producers when the difference between the price of milk and the cost of feed (the margin) falls below a certain level.
MPP provides basic, catastrophic-level coverage at the lowest level of $4 per hundred-weight for a $100 administrative fee with enrollment and greater coverage levels for additional premiums. Amounts of coverage and premiums vary based on producer selections; MPP allows dairy producers to build a safety net that fits the needs of their operation.
How much coverage does a farmer want? Seriously, there's an app for that.
The U.S. Department of Agriculture launched a new Web tool to help producers determine the level of coverage that will provide them with the strongest safety net under a variety of conditions. The online resource is available at www.fsa.usda.gov/mpptool.
It allows dairy farmers to combine unique operation data and other key variables to calculate their coverage needs based on price projections. Producers can also review historical data or estimate future coverage based on data projections. The secure site can be accessed via computer, Smartphone, tablet or any other platform, 24 hours a day, seven days a week.
But farmers should still consider an FSA informational meeting, because it could get complicated.
The informational meetings will be held at 1 p.m. and 7 p.m. Tuesday, Sept. 16 at Green County Justice Center; 1 p.m. Wednesday, Sept. 17 at Albany Lion's Club Hall; and at 10 a.m. Thursday, Sept. 18 at Green County Justice Center.
Enrollment for the new dairy risk management program has started in Wisconsin, but there's good reason for dairy farmers to hold off until they can attend one of the informational meetings next week, held by the Green County Farm Services Administration.
Green County FSA Director Teresa Zimmer said the meetings will cover the basics of the new program and give producers information they need to make a decision about enrolling their dairy operation.
The new program replaces the old Milk Income Loss Contract program. The final federal rule implementing regulations for the program was published Aug. 29.
Because of the many changes coming with the new program, Zimmer encourages all dairy producers to attend an information meeting.
The Agricultural Act of 2014 (Farm Bill) refers to the program as the Margin Protection Program for Dairy Producers. USDA is calling the program MPP-Dairy, or sometimes more simply as MPP.
The general purpose of the program is to give milk producers a cash benefit during periods of low price margins, or what is sometimes called "milk income over feed costs." It is not a price support program. The federal policy doesn't try to change the price of milk or the price of feeds. The program has sometimes been referred to, incorrectly, as margin insurance.
MPP calculates an "income over feed cost," in which both the price of milk and cost of feeds are calculated for selling or producing 100 pounds of milk. MPP allows farmers to pick how low the national margin indicator has to go before they get a benefit, provided they are willing to pay for higher levels of benefits. The national indicator is calculated from monthly U.S. price data for milk, corn, alfalfa hay and soybean meal.
MPP provides coverage that will pay dairy producers when the difference between the price of milk and the cost of feed (the margin) falls below a certain level.
MPP provides basic, catastrophic-level coverage at the lowest level of $4 per hundred-weight for a $100 administrative fee with enrollment and greater coverage levels for additional premiums. Amounts of coverage and premiums vary based on producer selections; MPP allows dairy producers to build a safety net that fits the needs of their operation.
How much coverage does a farmer want? Seriously, there's an app for that.
The U.S. Department of Agriculture launched a new Web tool to help producers determine the level of coverage that will provide them with the strongest safety net under a variety of conditions. The online resource is available at www.fsa.usda.gov/mpptool.
It allows dairy farmers to combine unique operation data and other key variables to calculate their coverage needs based on price projections. Producers can also review historical data or estimate future coverage based on data projections. The secure site can be accessed via computer, Smartphone, tablet or any other platform, 24 hours a day, seven days a week.
But farmers should still consider an FSA informational meeting, because it could get complicated.
The informational meetings will be held at 1 p.m. and 7 p.m. Tuesday, Sept. 16 at Green County Justice Center; 1 p.m. Wednesday, Sept. 17 at Albany Lion's Club Hall; and at 10 a.m. Thursday, Sept. 18 at Green County Justice Center.