There are several key takeaways for dairy in the latest COVID-19 aid bill just signed by President Trump.
First there’s about $1.5 billion planned for new food purchases by the government. There’s an additional $400 million for a food donation program that allows dairy organizations to partner with nonprofits that distribute food to low-income individuals. Additionally, there are direct payments for producers, adding up to $3 billion spread across dairy farms and livestock operations.
Dairy Margin Coverage Enrollment
It was a popular program for many producers last year, the Dairy Margin Coverage Program, but how many signed up this year?
Farm Journal’s Dairy Herd Management reports only 51% of U.S. dairy producers signed up for the coverage this year. That’s compared to nearly 84% last year.
Experts say fewer producers signed up this year, because prices appeared to look more encouraging, which lead thousands of producers to believe that they could save a few dollars by opting out of the safety net program.
Throughout this year, the more than 13,000 operations enrolled in the program received a total of nearly $200 million in payments. It averages out to be more than $14,000 per operation.
When time came to enroll for coverage for 2020, enrollment numbers jumped to 68.2%, That means, nearly two-thirds of all dairy producers are now signed up for the coverage.
