Questions About Production History

 

How is annual production history defined?

Annual production history is the highest annual milk marketings in calendar year 2011, 2012 or 2013.

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Does annual production history increase during the life of the program?

Yes. Production history increases each year based on the increase in national average milk production. For example, USDA determined milk production increased 2.61 percent in 2014. As a result, those already in the program will see their production history increasd by the same 2.61 percent for the 2016 enrollment year. No other increases in production history will be covered. However, if national average milk production decreases, production histories will not decrease.

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What if a dairy operation has no annual production history during 2011, 2012 or 2013?

Farmers without production history for 2011, 2012 or 2013 are considered new operations. If an operation started February 7, 2013 or later, it has two options to determine production history. These are: 1) the volume of milk marketings for the months they were in production extrapolated over a year, or 2) an estimate of the operation’s actual milk marketings based on herd size and national rolling herd average data from USDA.

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If I decide to sell my dairy operation, can I keep or sell my production history?

If a dairy farm is sold, production history can either move with the farmer to a new facility, or stay with the farm, but not both. USDA will handle unique ownership situations and changes on a case-by-case basis.

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What if a dairy closes and then reopens? How is its annual production history determined?

If a dairy operation closed before 2011 and then reopens, the Margin Protection Program considers it a new farm. If a dairy operation closed after January 1, 2011, and then reopens, production history is determined using the highest annual milk marketings from calendar years 2011, 2012 or 2013. An operation that restarted after February 7, 2013, has two options for determining production history: 1) the volume of milk marketings for the months they were in production extrapolated over a full year, or 2) an estimate of actual milk marketings based on herd size and national rolling herd average data from USDA.

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