USDA's Perdue Commits To Rolling Out Dairy Program ASAP

USDA is putting a lot of attention on getting the new dairy program in the 2018 Farm Bill ready for producers to use, with a goal of getting the tool in their hands and dollars flowing to eligible producers yet this spring. The bill replaced the Margin Protection Program (MPP) for dairy in the 2014 Farm Bill with what is now known as the Dairy Margin Coverage (DMC) program. The new DMC will allow many small- and medium-size milk operations to buy higher levels of insurance protection at significantly lower premiums. Getting the program rolling as quickly as possible was pledged by USDA Secretary Sonny Perdue in an appearance before the Senate Ag Committee, echoing commitments he made in a similar session Wednesday before the House Ag Committee. By the end of April, Perdue said, USDA is aiming to issue premium refunds to dairy farmers for what they paid in under MPP. Those who participated in MPP for 2014 through 2017 are being given two options under the new farm bill: Get 50% of their insurance premiums back in direct cash or receive a 75% refund to use as a credit toward purchasing coverage under DMC. "We should get that rolling by the end of April," Perdue said. For signup, Perdue said the agency is planning on June 17 for DMC, with payments hopefully beginning in early July. DMC payments are triggered when the difference between the price of milk and feed drop below thresholds that producers choose to insure. Getting a payment calculator out for DMC is also a priority, Perdue said when asked by Senate Ag Committee Ranking Member Debbie Stabenow, D-Mich. "We are expecting to have that calculator out probably the middle of April, as quickly as possible – hopefully, before then," he explained. "We're going to allow those farmers with the retroactive insurance and MPP to participate beginning in the middle of March – March 18th."