Dairy MPP Payment For May/June Hardly Worth Cashing

July 30, 2015 04:41 PM
 
Dairy MPP Payment For May/June Hardly Worth Cashing

USDA’s Farm Service Agency announced prices for corn, alfalfa, soybean meal and milk this afternoon, showing a milk-feed margin of $8.16.  Combined with the May margin of $7.83, the average May-June margin was $7.9953. 

If produces selected the $8 margin insurance, they will receive a payment of 0.47¢/cwt. 

Sign-up for the 2016 is currently underway, and ends September 30. 

 

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Comments

 
Spell Check

Scott
Green Bay, WI
8/4/2015 09:25 AM
 

  This program does what it is suppose to do ...be used as catastrophic insurance. It is not risk management and should not be used that way. When you buy fire insurance on your farm, do you want to collect? Most farmers would rather not collect and be happy running their business as is. Farmers should look at this program the same way ...we don't want government assistance if it really isn't needed. That's where it differs than MILC.

 
 
Mike
Mansfield, TX
7/31/2015 03:42 PM
 

  The payment calculated is actually $0.0047 / cwt and with the sequestration (7.3% reduction) the amount received by the farmer would be $0.0043. The farmer cost for the $8 coverage is $1.36 / cwt. you draw your own conclusions about the effectiveness of the FSA MPP Dairy program.

 
 
Mike Eby
Gordonville, PA
8/5/2015 11:07 AM
 

  If we as a Country are not going unify as dairy producers and to produce to the demand continuing the race to the bottom to be the worlds lowest cost provider of dairy to the world...of which by the why we will lose, then at the very least raise the tax payer subsidized catastrophic MPP level. The American people are getting a sweetheart deal with the USA CHEAP FOOD POLICY. In order for we the farmer to survive we will either need to get paid legitimately from the market place with no government interaction balancing supply with demand or subsidized completely....there is no middle ground. We are currently trapped in a system where the one who provides the food pays his way to exist, once broke he then exits the dairy industry. We lost over half our dairy farms since 2000. I rest my case. Mike Eby

 
 

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