NEWPORT — Vermont dairy farmers are strongly encouraged to push the pencil and closely look at the Milk Margin Protection Program by June 1.
The USDA program received upgrades in 2018.
“The improved Margin Protection Program could be a significant net financial benefit for most Vermont dairy farmers this year, especially with the important added funds from the State of Vermont, but ONLY if farmers sign up,” Senator Patrick Leahy said.
The Milk Margin Protection Program offers dairy farmers a risk management tool to protect the margin between milk price and feed costs, one of the greatest costs of operating a dairy farm.
All dairy farmers are eligible to take part in the program if they are not already enrolled in the Livestock Gross Margin Program.
The program insures the margin between the national all-milk prices and a nationally calculated feed cost.
The higher margin requires farmers to pay an insurance premium. Helping make the program more affordable, Governor Scott and Agriculture leaders in the Senate and House have agreed to help pay for some of the costs if farmers sign up.
“The Vermont legislature is very committed to helping one of our state’s most important business,” Vermont Senator Bobby Starr of Orleans County said. “The dairy industry is vital to our rural economy, landscape and most importantly, it promotes and protects our heritage.”
Under the proposal, Vermont will provide a minimum of $600 toward the insurance premiums for dairy farmers that take part in the program in 2018. This assistance could make this program even more attractive to dairy farmers of different sizes.
All farmers need to complete their own calculations.
Farmers should contact their local USDA Farm Services Office prior to the June 1 sign up deadline to ensure that sign up is completed in a timely manner.
Visit https://www.fsa.usda.gov/programs-and-services/Dairy-MPP/index for more information, calculation tools and contacts.
