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Dairy producers have opt-out option for 2018 Margin Protection Program

USDA officials are accepting both sign-ups and opt-outs starting September first for the Dairy Margin Protection Program.  The USDA announced producers can enroll for 2018 coverage after having sign-ups delayed by the agency earlier this summer, but for the first time, there’s a way out of the widely-criticized program.

At the request of many farmers, Ag Secretary Sonny Perdue has used his authority to allow producers to withdraw from the MPP Dairy Program and not pay the annual administrative fee for 2018.  Acting Deputy Under Secretary Rob Johansson says producers that want out of the MPP should not sign up during the annual registration period.  The opt-out option is for the 2018 marketing year only.

Farm Service Agency offices can assist producers who wish to sign up for MPP or consider their options.

The American Farm Bureau Federation was quick to applaud Perdue’s decision to allow farmers out of the MPP.  President Zippy Duvall says, “Approximately 24,000 dairy farms, representing 80 percent of the U.S. milk supply, are currently enrolled in the program, however, this year only 2 percent of the milk enrolled participated at levels above the basic coverage option. The low participation rate is due to the poor performance of MPP in providing a viable safety net to dairy farmers.”

Duvall says Farm Bureau looks forward to working with USDA and Congress to enhance the dairy safety net.

The National Milk Producers Federation is also pleased.  President Jim Mulhern issued a statement saying, “Today’s announcement to allow farmers to opt out of the program in 2018 is a welcome development, in that it acknowledges the widespread dissatisfaction among farmers enrolled in the program. Simply put, the way the program was enacted in the 2014 Farm Bill, it does not meet the needs of America’s dairy farmers today, and declining participation levels amply illustrate farmers’ disenchantment with the MPP. Farmers who choose to opt out of the MPP will then be able to enroll in the Livestock Gross Margin program for 2018.”