The United States Department of Agriculture (USDA) announced this morning it will make $11.2 million in Dairy Margin Protection Program payments to 4,852 farmers. The payments will be the largest in the program’s history, which started in March 2014.
The indemnity payments come as a result of a milk/feed margin that averaged $5.76/cwt for the May/June payment period. Payments will be based on the level of trigger coverage levels farmers signed up for:
• $6.00 trigger levels will generate a 24¢/cwt payment.
• $6.50 trigger levels will generate a 74¢/cwt payment.
• $7.00 trigger levels will generate a $1.24/cwt payment.
• $7.50 trigger levels will generate a $1.74/cwt payment.
• $8.00 trigger levels will generate a $2.24¢/cwt payment.
Wisconsin will see the largest payments, with $2,832,010 being paid to 1,465 farmers. Minnesota will receive $2,164,218, being distributed to 999 farmers. See the full list here.
USDA Secretary Tom Vilsack used the announcement of the payments to encourage enrollment in the 2017 program. “I want to urge dairy producers to use this opportunity to evaluate their enrollment options for 2017, as the enrollment period is currently scheduled to end Sept. 30, 2016,” he says.
By: Jim Dickrell
Source: Agweb.com
