Dairy MPP Arrears Letters to Arrive by End of February

Dairy farmers who had previously enrolled in the Dairy Margin Protection Program but have not yet paid their $100 administrative fee for 2016 will be notified of that fact by the end of the month.

USDA’s Farm Service Agency (FSA) notified County offices this week that they have until the end of business on Feb. 19 to mail the arrears notification letter to farmers. Failure to pay the $100 fee results in the loss of any MPP coverage for 2016.

“However, if the administrative fee is paid late, dairy operations can regain coverage for 2016, at the catastrophic ($4) level only, beginning with the next consecutive two month period following payment of the 2016 administrative fee and submission of CCC-782,” says FSA notice.

If the farm was also in arrears for 2015, it cannot be approved for buy-up coverage for 2016 unless it had paid all 2015 premiums by November 20, 2015.  If the farm still has not paid all premiums for 2015 by November 1, 2016, it will be ineligible for “bump up” coverage in 2017. (Note: For farms in good standing, USDA “bumps up” a farm’s eligible production history by the percent increase in national milk output in the previous year.)

For more detail, click here.