July 27, 2018

How Many MPP Payments Were Issued in Your State?

 |  By: Anna-Lisa Laca

Congressional improvements to the Margin Protection Program earlier this year enticed more than 21,000 producers to enroll for the 2018 coverage year. During the month of May, the time of enrollment, payments were guaranteed for the first few months of the year. According to USDA estimates, more than 50% of the licensed dairy farms in the U.S., representing 131 billion pounds of milk or 60% of the U.S. milk supply, will be covered this year. 

According to John Newton, chief economist at the American Farm Bureau Federation, MPP triggered payments at the $7 and $8 coverage levels from February through May and those payments were made retroactively. 

“As of early July, USDA has made over $155 million in program payments to dairy operations participating in MPP during 2018,” he says. “The average payment rate through May was $7,400 per dairy operation, or 29 cents per hundredweight.”

By Newton’s calculations, Wisconsin farmers received $37 million in payments so far and farmers in the Northeast have received more than $30 million. 

Check out this map to see how many payments were issued in your state. 

MPP Payment map

“To receive these and future benefits, dairy farmers across the U.S. paid more than $65 million in premiums and administrative fees – resulting in a current net benefit of more than $91.5 million,” Newton explains. “This total will get larger as MPP is certain to be triggered in the coming months due to trade-related price declines.”