Dairy Producers May Opt Out of MPP Dairy for 2018

“Dairy producers should be aware that USDA is allowing producers to opt out of the dairy Margin Protection Program (MPP) for 2018 and participate in the Livestock Gross Margin-Dairy crop insurance program,” said Jeremy Forrett, vice president for Crop Growers, LLP.

In announcing the change, Acting Deputy Under Secretary for Farm Production and Conservation Rob Johansson said in a news release, “Secretary Perdue is using his authority to allow producers to withdraw from the MPP-Dairy program and not pay the annual administrative fee for 2018. The decision is in response to requests by the dairy industry and a number of MPP-Dairy program participants.”

Dairy producers who opt out of MPP-Dairy for the 2018 coverage year will be eligible to participate in the Livestock Gross Margin-Dairy program beginning with the November 2017 sales period, with insurance coverage beginning in January 2018 in accordance with the Commodity Exchange Endorsement for Livestock Gross Margin for Dairy Cattle. This will allow producers to transition from MPP-Dairy to LGM-Dairy without a lapse in coverage and will ensure MPP-Dairy and LGM-Dairy coverage does not overlap.

The November LGM-Dairy crop insurance sales closing date is Friday, November 17, 2017. Dairy producers interested in enrolling in LGM-Dairy should contact their Crop Growers agent as soon as possible in advance of the November 17 sales closing date to complete the necessary application process.

Crop Growers, LLP, is an independent agency that sells and services crop insurance for 34 different crops through a nine state territory. Crop Growers is owned by Farm Credit East, in conjunction with other Northeast Farm Credit Associations. Producers do not need to be a Farm Credit customer to purchase crop insurance. Contact the Crop Growers Customer Service Center at 1-800-234-7012 to learn more.