Dairy MPP Payments Announced for March/April
If you’re eligible to receive Dairy Margin Protection Program payments for the March/April indemnity period, rest assured that USDA is calculating those payments down to no less than five decimal places.
Notice of the payments was sent to USDA Farm Service Agency county offices last week. The national average milk/feed margin for March and April came in at $7.14868. (This is the lowest milk/feed margin calculated since the program has been in effect. The second lowest occurred in March/April 2015, and came in at $7.50/cwt.)
For dairy farms who signed up for $8 margin protection, indemnity payments will be $0.85132. For farms signing up for $7.50 margin protection, the payment will be $0.35132. The actual payments will then be made on the percentage of historical production that the farms signed up for.
Oh, and one more thing: The Dairy MPP payments are subject to budget sequestration, so actual payments will be reduced by 6.8%. So the actual indemnities paid will be $0.79343 and $0.32427 (or thereabouts).
Read the USDA notice here.