"Understanding the MPP Changes" with NMPF

"Understanding the MPP Changes" with NMPF

NMPF's Chris Galen and Peter Vitaliano discuss the recent improvements to the dairy Margin Protection Program and what it all means for dairy producers. They also review USDA's Decision Tool, which helps farmers determine the appropriate coverage. The deadline to enroll in the program in June 1.

Are you ready for the Margin Protection Program for Dairy Producers (MPP)?

Are you ready for the Margin Protection Program for Dairy Producers (MPP)?

John Newton, Clinical Assistant Professor, Department of Agricultural and Consumer Economics, University of Illinois Phil Cardoso, Assistant Professor, Department of Animal Sciences, University of Illinois The 2014 Farm Bill provides the most comprehensive reform to the U.S. federal dairy farm safety net seen in decades. In place of milk price and revenue support programs the new Farm Bill creates a new Margin Protection Program for Dairy Producers (MPP). MPP is a voluntary program which places an emphasis on protecting income over feed cost margins. MPP protects against severe downturns in the milk price, rising livestock feed prices, or a combination of both. Dairy farm families now have a voluntary safety net program that helps them through tough times and keeps pace with the challenges facing the U.S. dairy industry. MPP is a flexible program that allows a dairy operator to self-select coverage options to protect the farm against declines in national average production margins. Different coverage options reflect a producer's ability to protect different margin levels (from $4 to $8 per hundredweight) and different coverage percentages (from 25% to 90%). MPP is administered by U.S. Department of Agriculture’s Farm Service Agency. The U.S. Department of Agriculture and the University of Illinois as lead for the National Coalition for Producer Education has partnered with the National Program on Dairy Markets and Policy to develop a web-based decision tool for MPP dairy. In this webinar, Dr. John Newton will lead discussions on the new MPP program, explain how it may help dairy operators manage financial risk, review key sign-up and enrollment dates, and will demonstrate the new USDA sponsored MPP decision tool. Also, Dr. Phil Cardoso will discuss the Dairy Focus toolbox that will enhance farmers’ understanding of income over feed cost (IOFC). Understanding of IOFC is pivotal in defining the best margin level and coverage percentage for your farm.

Margin Protection Program Online Decision Tool

Margin Protection Program Online Decision Tool

The 2014 Farm Bill provides the most comprehensive reform to the U.S. federal dairy farm safety net seen in decades. In place of milk price and revenue support programs the new Farm Bill creates a new Margin Protection Program for Dairy Producers (MPP). MPP is a voluntary program which places an emphasis on protecting income over feed cost margins. MPP protects against severe downturns in the milk price, rising livestock feed prices, or a combination of both. Dairy farm families now have a voluntary safety net program that helps them through tough times and keeps pace with the challenges facing the U.S. dairy industry. MPP is a flexible program that allows a dairy operator to self-select coverage options to protect the farm against declines in national average production margins. Different coverage options reflect a producer's ability to protect different margin levels (from $4 to $8 per hundredweight) and different coverage percentages (from 25% to 90%). MPP is administered by U.S. Department of Agriculture’s Farm Service Agency. The U.S. Department of Agriculture and the University of Illinois as lead for the National Coalition for Producer Education has partnered with the National Program on Dairy Markets and Policy to develop a web-based decision tool for MPP dairy. At this meeting, Dr. John Newton will lead discussions on the new MPP program, explain how it may help dairy operators manage financial risk, review key sign-up and enrollment dates, and will engage participants in hands on activities using the new USDA sponsored MPP decision tool.

Margin Protection Program Online Decision Tool

Margin Protection Program Online Decision Tool

The 2014 Farm Bill provides the most comprehensive reform to the U.S. federal dairy farm safety net seen in decades. In place of milk price and revenue support programs the new Farm Bill creates a new Margin Protection Program for Dairy Producers (MPP). MPP is a voluntary program which places an emphasis on protecting income over feed cost margins. MPP protects against severe downturns in the milk price, rising livestock feed prices, or a combination of both. Dairy farm families now have a voluntary safety net program that helps them through tough times and keeps pace with the challenges facing the U.S. dairy industry. MPP is a flexible program that allows a dairy operator to self-select coverage options to protect the farm against declines in national average production margins. Different coverage options reflect a producer's ability to protect different margin levels (from $4 to $8 per hundredweight) and different coverage percentages (from 25% to 90%). MPP is administered by U.S. Department of Agriculture’s Farm Service Agency. The U.S. Department of Agriculture and the University of Illinois as lead for the National Coalition for Producer Education has partnered with the National Program on Dairy Markets and Policy to develop a web-based decision tool for MPP dairy. At this meeting, Dr. John Newton will lead discussions on the new MPP program, explain how it may help dairy operators manage financial risk, review key sign-up and enrollment dates, and will engage participants in hands on activities using the new USDA sponsored MPP decision tool.

Margin Protection: What's right for you

Margin Protection: What's right for you

"Margin Protection: What's right for you” was presented by John Newton, University of Illinois, at noon (Central time) on Monday, October 13. During this webinar, Newton presented information on the new MPP-Dairy program, explained how it may help dairy operators manage margin risk, reviewed key sign-up and enrollment dates, and engaged participants with demonstrations using the new USDA sponsored MPP-Dairy decision tool.

Daniel Zelazik Market Commentary: "USDA to Purchase Surplus Cheese"

Daniel Zelazik Market Commentary: "USDA to Purchase Surplus Cheese"

USDA to Purchase Surplus Cheese for Food Banks and Families in Need, Continue to Assist Dairy Producers Department Also Will Extend Margin Protection Program for Dairy Enrollment Deadline WASHINGTON, Aug. 23, 2016 – The U.S. Department of Agriculture (USDA) today announced plans to purchase approximately 11 million pounds of cheese from private inventories to assist food banks and pantries across the nation, while reducing a cheese surplus that is at its highest level in 30 years. The purchase, valued at $20 million, will be provided to families in need across the country through USDA nutrition assistance programs, while assisting the stalled marketplace for dairy producers whose revenues have dropped 35 percent over the past two years. "We understand that the nation's dairy producers are experiencing challenges due to market conditions and that food banks continue to see strong demand for assistance," said Agriculture Secretary Tom Vilsack. "This commodity purchase is part of a robust, comprehensive safety net that will help reduce a cheese surplus that is at a 30-year high while, at the same time, moving a high-protein food to the tables of those most in need. USDA will continue to look for ways within its authorities to tackle food insecurity and provide for added stability in the marketplace." USDA received requests from Congress, the National Farmers Union, the American Farm Bureau and the National Milk Producers Federation to make an immediate dairy purchase. Section 32 of the Agriculture Act of 1935 authorizes USDA to utilize fiscal year 2016 funds to purchase surplus food to benefit food banks and families in need through its nutrition assistance programs. USDA also announced that it will extend the deadline for dairy producers to enroll in the Margin Protection Program (MPP) for Dairy to Dec. 16, 2016, from the previous deadline of Sept. 30. This voluntary dairy safety net program, established by the 2014 Farm Bill, provides financial assistance to participating dairy producers when the margin – the difference between the price of milk and feed costs – falls below the coverage level selected by the producer. A USDA web tool, available at www.fsa.usda.gov/mpptool, allows dairy producers to calculate levels of coverage available from MPP based on price projections. On Aug. 4, USDA announced approximately $11.2 million in financial assistance to U.S. dairy producers enrolled in MPP-Dairy, the largest payment since the program began in 2014. "By supporting a strong farm safety net, expanding credit options and growing domestic and foreign markets, USDA is committed to helping America's dairy operations remain successful," said Vilsack. While USDA projects dairy prices to increase throughout the rest of the year, many factors including low world market prices, increased milk supplies and inventories, and slower demand have contributed to the sluggish marketplace for dairy producers. USDA will continue to monitor market conditions in the coming months and evaluate additional actions, if necessary, later this fall. Since 2009, USDA has worked to strengthen and support American agriculture, an industry that supports one in 11 American jobs, provides American consumers with more than 80 percent of the food we consume, ensures that Americans spend less of their paychecks at the grocery store than most people in other countries, and supports markets for homegrown renewable energy and materials. USDA has also provided $5.6 billion in disaster relief to farmers and ranchers; expanded risk management tools with products like Whole Farm Revenue Protection; and helped farm businesses grow with $36 billion in farm credit. The Department has engaged its resources to support a strong next generation of farmers and ranchers by improving access to land and capital; building new markets and market opportunities; and extending new conservation opportunities. USDA has developed new markets for rural-made products, including more than 2,500 biobased products through USDA's BioPreferred program; and invested $64 billion in infrastructure and community facilities to help improve the quality of life in rural America. For more information, visit www.usda.gov/results.

A Narrated Presentation Explaining the New Dairy Margin Protection Program

A Narrated Presentation Explaining the New Dairy Margin Protection Program

This 21-minute, 34-slide presentation walks the viewer through the details of the program, including who is eligible, how to sign up, and what the fees and payments might look like under various scenarios. Also covered are the basic concept of the program, what it replaces, and how it compares to the previous dairy safety net.

Are you ready for the MPP?

Are you ready for the MPP?

Are you ready for the Margin Protection Program for Dairy Producers (MPP)?

Lewis and Clark - Slot Drain Systems

Lewis and Clark - Slot Drain Systems

Louis and Clark Brewery in Montana new facility outfitted with Slot Drain.

Dairy Policy and the Farm Bill: The Margin Protection Program

Dairy Policy and the Farm Bill: The Margin Protection Program

In this webinar, Dr. Andy Novakovic of Cornell University, and Dr. John Newton, of University of Illinois at Urbana-Champaign, talk about Dairy Policy and the 2014 Farm Bill programs, specifically the Margin Protection Program (MPP). In particular, Drs. Novakovic and Newton took a look at the MPP, talked about what we know now, what USDA is yet to decide on, and it's interface with LGM-Dairy and other risk-management strategies.

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