Even though only 55% of U.S. dairy farmers signed up for dairy Margin Protection Program insurance through the 2014 farm bill, more than two thirds of the nation’s milk supply has at least some coverage.
Last week, USDA released information that 67.6% of the nation’s milk supply has at least $4/cwt coverage. That suggests larger dairy farms signed up and enrolled a large chunk of their annual milk production. More than a fifth of the nation’s milk production, 22%, has at least $6/cwt coverage.
USDA reports that 0.3% of the nation’s milk output is covered all the way up $8/cwt. This milk will receive indemnities of about 0.5¢/cwt for milk produced in January and February. That’s because the January-February income over feed cost average was $7.9955. (In February, the IOFC level fell to $7.66.)
You can find the actual amounts of milk covered here.
And more information on the Dairy Margin Protection Program can be found here.