← Return to Home Page

National Milk Explains New Dairy Title

Print

   The National Milk Producers Federation has begun to explain the new Dairy Title, releasing a further explanation of the proposal, pointing out that the main feature of the new Farm Bill Dairy Title is the Dairy Producer Margin Protection Program.
   NMPF says the Margin Protection Program is a new and unique safety net program that will provide dairy producers with indemnity payments when actual dairy margins are below the margin coverage levels the producer chooses on an annual basis. Its focus is to protect farm equity by guarding against destructively low margins, not to guarantee a profit to individual producers. The Farm Bill requires the Margin Protection Program to be established no later than September 1, 2014.
   The program supports producer margins, not prices and is designed to address both catastrophic conditions as well as prolonged periods of low margins. Under this program, the “margin” will be calculated monthly by USDA and is simply defined as the all-milk price minus the average feed cost. Average feed cost is determined using a feed ration that has been developed to more realistically reflect those costs associated with feeding the entire dairy farm enterprise consisting of milking cows, heifers, and other related cost elements. To read the complete analysis log on to http://www.nmpf.org/files/Farm-Bill-Dairy-Title-Summary-012814.pdf.

background_banner