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What is the Dairy Margin Protection Program?

Brost Farms WSThe Farm Bill, The Agricultural Act of 2014, introduced a new Dairy Margin Protection Program (DMPP) for milk producers.  The DMPP has replaced the Milk Income Loss Contract Program (MILC) and is effective yearly through December 31, 2018.   This new program offers two options:

  • Catastrophic Coverage provides payments to participating producers when the national dairy production margin is less than $4.00 per hundredweight (cwt) between the nationwide milk price and feed costs.  This program is available for a $100 administrative fee.
  • Various levels of Buy-Up Coverage is also available for purchase for the $4-8 per hundredweight of margin protection. To find out costs for this option, click here.  Agree to the disclaimer and type in your milk production and check out price projections and other market factors that will help you decide what level of coverage is best for your specific farm operation.

To sign up for program, forecast margin or see what option fits your farm’s needs, go to the FSA DMPP website.

For more details on DMPP, go to the Farm Service Agency Dairy Margin Protection Program or contact your local FSA office.

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