April 12, 2016

Margin Protection Program Rules Modified to Accommodate Generational Succession

 |  By: Anna-Lisa Laca

Dairy farms participating in the Margin Protection Program gained some flexibility this morning. Agriculture Secretary Tom Vilsack announced producers participating in the program will be able to update their production history, a factor used to determine payment amounts through the program, when an eligible family member joins the operation.

"This change not only helps to strengthen a family dairy operation, it also helps new dairy farmers get started in the family business, while ensuring that safety net coverage remains available for these growing farms," said Secretary Vilsack. "When children, grandchildren or their spouses become part of a dairy operation that is enrolled in MPP, the production from the dairy cows they bring with them into the business can now be protected. By strengthening the farm safety net, expanding credit options and growing domestic and foreign markets, USDA is committed to helping American farming operations remain successful."

Farm Service Agency (FSA) published a final rule making the change effective April 13, 2016. If your dairy is already enrolled in MPP and you’ve experienced a generational transfer, you have the opportunity to update your production history during the 2017 coverage election period. If generational transfer occurs after July 1, 2016 you must notify FSA within 60 days of purchasing more cows to have your production history updated. Each participating dairy farm is only allowed one intergenerational transfer at any time of its choosing until 2018. Read the entire press release on our sister website: