Agriculture Secretary Tom Vilsack Thursday announced that dairy producers enrolled in the 2016 Margin Protection Program for Dairy will get approximately $11.2 million in financial assistance. Vilsack said Thursday “we understand the nation’s dairy producers are experiencing challenges due to market conditions.” The payment rate for May/June 2016 will be the largest since the program began in 2014. The national average margin for the May/June 2016 two-month consecutive period is $5.76 per hundredweight, resulting in the MPP payments. Dairy producers who enrolled at the $6 through $8 margin trigger coverage level will receive payments. MPP-Dairy payments are triggered when the national average margin—or the difference between the price of milk and the cost of feed—falls below a level of coverage selected by the dairy producer, ranging from $4 to $8, for a specified consecutive two-month period. Vilsack also urged dairy producers to evaluate their enrollment options for 2017, as the enrollment period is currently scheduled to end September 30th, 2016.
From the National Association of Farm Broadcasting news service.