Enrolling in the Margin Protection Plan – Is It Right For You? – Ag Matters

As roller coaster milk prices begin to show a slight uptick, profits are still somewhat sketchy.  Cornell Cooperative Extension says enrolling in the Margin Protection Plan could help even out cash flow.

The USDA recently announced an extension to the deadline for dairy producers to enroll in the Margin Protection Plan.  You now have until December 16 to sign up or if you are already enrolled, to make changes to selected coverage.  This safety net program provides financial assistance to participating dairy producers when the the difference between the price of milk and feed costs falls below the coverage level selected.

Many dairy economist are suggesting that the margin may hover or exceed the $10 mark. Producers who choose to enroll should make the time to determine their actual cost of production for their farm and then compare it to the actual and forecasted dairy production margin. The MPP allows a producer to choose coverage at margin levels between $4 and $8.

The Dairy Markets and Policy website has a useful tool that can help aid in your decision making. Additional questions on the Margin Protection Plan can be directed towards the Ag Experts at CCExtension at 315-736-3394 ext. 132

SOURCE: Cornell Cooperative Extension - Marylynn Collins