Andy Novakovic, a dairy economist with Cornell University, offers some last minute thoughts on enrolling in the Dairy Margin Protection Program (MPP) for 2015.
So far, he says, anecdotal reports from Farm Service Agency offices are that sign-up has been light. Whether that’s due to lack of interest or farmers simply getting late fall chores completed is unknown. If you are considering sign-up, there are only a few shopping days left, so to speak. The MPP enrollment deadline is Dec. 5.
“As I look at the market indications using our tool, I am struck that margin risk is increasing for 2015,” he says. “But even then, each producer has to decide if a 30% chance of rain (or snow in the case of New York) is serious enough to grab an umbrella or throw boots and a blanket in the car.”
He continues: “There are many considerations. Some are common to a lot of farms. Some are unique to your operation and how you approach risk and/or government programs.”
Novakovic outlines six strategies dairy farmers could employ. They’re designed more to fit the risk mentality of farmers; none are right or wrong. You can read his full report here.