U.S. Rep. Glenn ‘GT’ Thompson (R-PA) on March 22 celebrated a federal decision to improve risk management coverage for the nation’s dairy farmers.
The U.S. Department of Agriculture (USDA) now permits more dairy farmers the option to enroll in both the Margin Protection Program for Dairy (MPP-Dairy) and the Livestock Gross Margin for Dairy Cattle Program (LGM-Dairy) to receive 2018 coverage.
“I commend USDA for making this adjustment to allow dairy producers to take advantage of both coverage programs,” Rep. Thompson said.
The MPP-Dairy is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer, according to USDA’s Farm Service Agency (FSA).
The program also offers dairy producers no-cost catastrophic coverage except for an annual $100 administrative fee that may be waived, as well as various levels of buy-up coverage, FSA says.
The LGM-Dairy provides protection against loss of gross margin, which is the market value of livestock minus feed costs, according to USDA’s Risk Management Agency.
According to the USDA, dairy producers who elected to participate in LGM-Dairy also may choose to retroactively participate in the MPP-Dairy for 2018 coverage.
Previously, dairy producers enrolled in 2018 LGM-Dairy were determined ineligible for coverage by the 2014 Farm Bill under MPP-Dairy, according to information provided by Rep. Thompson’s office.
However, “dairy provisions in the 2018 Farm Bill were designed to help provide better coverage, make programs more affordable and increase risk-management,” the congressman said. “Today’s announcement is good news for Pennsylvania’s dairy farmers and I encourage them to take a good look at this option.”