Introducing the New Margin Protection Program

In 2009, a perfect storm of plummeting milk prices and high feed costs combined to push dairy margins to the brink. Thousands were forced out of business and many of those who survived went deep into debt. Nationwide, dairy farmers lost $20 billion in net equity between 2007 and 2009.

Clearly, the dairy farmers needed a new safety net. It took five years of work, but Congress finally responded by including a new Dairy Producer Margin Protection Program in the 2014 farm bill. It wasn’t everything the National Milk Producers Federation wanted. But the 950-page bill does feature the most significant rewrite of dairy policy in more than a generation. The program will help address the volatility in farmers’ milk prices, as well as feed costs, and provide appropriate signals to help address imbalances in supply and demand. Overall, it provides a more effective and reasonable safety net for dairy farmers. And whatever its shortcomings, it is far better than the programs it replaced.

Through this website, read about what the new program is, why it was needed, and, most importantly in the months ahead, how it is being implemented.

Margin Protection Program Brochure

The Margin Protection Program will help address the volatility in margins caused by either low milk prices, high feed costs, or the combination of both. This brochure helps answer some of the questions about the program, including how it will work, coverage levels, premium costs, what the new program replaces, and the new Dairy Product Donation Program.

 

Program Details

The main feature of the new Farm Bill Dairy Title is the Dairy Producer Margin Protection Program. Learn more about:

 

Resources

Download additional resources about the Margin Protection Program:

  • U.S. Dairy Insurance Plan a Template for Reluctant Livestock Farmers (PDF PDF)
  • MPP Monthly Margins from 2007 to the Present

 

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