USDA has extended sign-up for the 2018 Dairy Margin Protection Program (MPP) until this Friday, June 8. The original deadline was June 1.
The National Milk Producers Federation (NMPF) thanked USDA for extending the deadline and four Senators for encouraging USDA to do so. NMPF thanked Sens. Tina Smith (D., Minn.), Rob Portman (D, Ore.), Debbie Stabenow (D., Mich.) and Patrick Leahy (D., Vt) for spearheading efforts to extend the MPP signup deadline one week.
“In particular, the late spring planting in numerous dairy states, especially in the Midwest, means that many farmers have been in the fields in recent weeks and unable to sit down and make decisions about their risk management options available through USDA,” says Jim Mulhern, NMPF CEO and president.
Even if farmers had signed up for the 2018 program before last fall’s deadline, they had to re-up this spring due to changes mandated by Congress this winter. Based on current futures markets, indemnities are likely from February through June at the $8 coverage level. (Note, however, that MPP indemnity payments will be subject to sequestration at the rate of 6.6%.) For Tier 1 production (up to 5 million lb), the premium for $8 coverage is 14.2¢/cwt.
Note: MPP premiums for 2018 are due Sept. 4. “Premiums will not be deducted from MPP payments,” says Wayne Maloney, a USDA Farm Service Agency public affairs specialist. “The producer will receive his/her full payment and they don’t have to pay their premium until Sept. 4.” USDA says it will begin issuing 2018 MPP indemnity payments starting this week for farmers who already enrolled.