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September 1, 2016

Dairy MPP: A Safety Net, Survival Tool or Fairy Tale?

 |  By: Jim Dickrell

Although the Dairy Margin Protection Program paid out more than $11 million in indemnities this summer, dairy farmers continue to wonder if the program is a worthwhile risk management tool.

The American Dairy Coalition is hosting a one-hour webinar September 21 from 9 to 10 a.m. Central Time to look at the intricacies of the program. Entitled “Dairy MPP: A Safety Net, Survival Tool or Fairy Tale,” the webinar will discuss the program’s risks and benefits, and will entertain a discussion on possible revisions to the program for the next farm bill.

Panelists invited to speak include Bart Fischer, chief economist with the U.S. House Committee on Agriculture, Alex Coenen, a producer and director of business director with Milk Source, and Jim Dickrell, editor of Dairy Herd Management. The panel will be moderated by Sam Miller, Managing Director of Agricultural Banking at BMO Harris Bank.

Participation is limited to the first 100 who sign up here.


The MPP is a total scam, the payments for May/June were a total fluke driven by speculative upward movement in the grain markets, so far the total payments are just slightly above the cost of the premium, unlike the MILC where everyone received money to a point, with the MPP, the only one making money is Uncle Sam. When you take an average national milk price, which is way higher than an overproducing state like Michigan where producers pay huge deductions for dumped surplus milk, the MPP is a Zero sum program even at the $8 dollar buy up level.
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