An online tool is available to help dairy farmers make insurance coverage decisions under the new Dairy Margin Protection Program (DMPP).
USDA’s Farm Service Agency, the National Coalition for Producer Education (NCPE) and the National Program on Dairy Markets and Policy (DMaP) partnered to develop the web-based decision support tool for DMPP, as well as the Livestock Gross Margin-Dairy (LGM-Dairy) insurance program.
Access to the MPP Decision Tool and other educational material is available at the following websites:
A brochure identifying the features of the MPP Decision Tool is available here: brochure.
The MPP Decision Tool was designed to be easy to use and is optimized to run on all electronic devices, including home PC, smart phones, and tablets using Windows, iOS, and Android operating systems. Additionally, only one data point – the dairy operation’s production history – is need from the dairy producer to use the decision tool for the MPP decision.
Dairy farmers can use the MPP Decision Tool in as few as 4 clicks of the mouse:
Click 1: What is Your Production History? The dairy operation's production history is defined as the maximum calendar year milk production during 2011, 2012 and 2013. This is the only data point needed in order to generate unique MPP Decision Tool results with respect to MPP. The decision tool includes a downloadable form to help determine production history.
Click 2: Evaluate MPP Margin Forecast. Each day price forecasts of the dairy production margin are generated using CME Group futures market data. This information is used to forecast the probability of MPP payments for all 126 coverage options for the coverage year.
Click 3: Select a Coverage Level Threshold and Coverage Level Percentage. Different coverage options reflect a producer's ability to generate different margin levels (from $4 to $8 per hundredweight) and different coverage percentages (from 25% to 90%).
Click 4: Print Registration Forms. Tool users can elect a coverage level and coverage percentage and then print their farm-specific USDA FSA registration forms directly from the MPP Decision Tool. Alternatively, users on a mobile device can generate a PDF file displaying their coverage options selected from within the MPP Decision Tool.