Dairy Producers Enrolled in Livestock Gross Margin Program Eligible for 2018 MPP

Dairy producers who participated in the Livestock Gross Margin for Dairy Cattle Program now can participate in the Margin Protection Program for Dairy for 2018 coverage.

The Department of Agriculture announced the eligibility last week.  Producers enrolled in 2018 LGM-Dairy, administered by USDA’s Risk Management Agency under 2014 Farm Bill, were ineligible for coverage under MPP-Dairy, a safety net program available through USDA’s Farm Service Agency.  FSA Administrator Richard Fordyce says changes in the 2018 Farm Bill “includes the ability for producers with LGM coverage to retroactively enroll in MPP-Dairy for 2018.”

The MPP-Dairy program offers protection to dairy producers when the difference between the national all-milk price and the national average feed cost falls below a certain dollar amount selected by the producers in a dairy operation.  LGM-Dairy is an insurance product that provides protection when feed costs rise, or milk prices drop.  This retroactive sign-up is only for dairy producers with 2018 LGM coverage who produced and marketed milk in 2018 but did not obtain full year MPP-Dairy coverage.

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