Dairy farmers are pleased with USDA’s recent announcement to allow them to exit the Margin Protection Program for dairy producers, AFBF President Zippy Duvall said in a statement.
“Dairy farmers need access to effective risk management tools. Farm Bureau and our grassroots members look forward to working with USDA and Congress to enhance the dairy safety net,” Duvall said.
Introduced in the 2014 farm bill, MPP was intended to offer protection against declines in the difference between the milk price and the cost of feed on a dairy.
“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 said.