The sign-up deadline for 2019 Dairy Margin Coverage insurance is now just 10 days away. Sign-up deadline is September 20.
Because coverage is retroactive to January 1, guaranteed payments already exceed the cost of premiums for the year.
Western United Dairyman (WUD) provides this example for a producer with 5 million pound of production history signing up at the $9.50 (maximum) coverage level:
“This [coverage] would cost him $7,500 in premiums (plus a $100 administrative fee). We know the payments January – July total $27,083. This means $19,483 would go in this producers pocket,” says WUD economists.
Currently, Wisconsin leads the nation in sign-up rate, with 74% of its operations already enrolled. California currently has just 53% of its operations enrolled.
WUD economists also urge dairy farmers to sign up the Market Facilitation Program available to help compensate farmers for market losses due to the trade war with China. The payment rate is 20₵/cwt, though the payment is available on only 50% of your production. Nevertheless, WUD points out it costs nothing to apply for the payment. “So here’s a second reason to visit your Farm Service Agency office this month,” say the economists.