A USDA official says the new and improved Dairy Margin Protection Program is worth a last-minute look by dairy producers, but signup time is running out. Producers have just a few hours to decide whether or not it is for them. Producers have shied away from the old program, saying it did not pay them anything and was too expensive.
Undersecretary of Agriculture Bill Northey said this program is retroactive to the first of the year, “and right now where we’re at, folks are such that they earned a margin in February, March and April, probably enough to pay for their premium if they’re the right sized producer, or a producer with less than 5 million pounds of production.”
So, it’s almost a no-brainer for many dairy operators. Northey says many of those operators have been losing money over the last year or two. The new MPP will not make them whole he says, “but this will help take the edge off. In the meantime, we hope in the future those margins will widen out and producers will be profitable without an insurance program kicking in. But, it’s sure important to try and get some insurance if that will work to help you in the future as well as for the past four or five months.”
The deadline for signup is today, June 1st at the close of business. So, the best option at this point is to call your local office before Friday’s close, get on the signup appointment register, and you’ll be allowed to sign up later.