Margin Protection Program Successful but Still Improving

The Dairy Margin Protection Program, or MPP, was created by the 2014 Farm Bill and one industry official says it’s working.

Chris Galen with the National Milk Producers Federation said, “The reason we created this was to provide great comprehensive coverage if milk prices and feed costs are really poor. So if you get that combination, like what we saw in 2012, like what we saw even worse in 2009, then the program’s really going to pay out significantly.”

Galen said MPP paid out over four two-month periods last year, something the previous program would not have done.

Still it’s a work in progress in some areas according to Galen.

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“Premium levels, the cost of the premiums, the margin thresholds themselves, the $4-$8 levels.”

Galen did say he’s appreciated that the USDA has already made changes in other areas such milk check deductions, covering 90 percent of milk history and allowed milk production history to include family members.