Secretary Perdue Using his Authority to Allow Producers to Withdraw from the MPP Dairy Program

A news release last week from USDA’s Farm Service Agency (FSA) stated that, “[FSA] today announced that starting Sept. 1, 2017, dairy producers can enroll for 2018 coverage in the Margin Protection Program (MPP-Dairy).  Secretary Sonny Perdue has utilized additional flexibility this year by providing dairy producers the option of opting out of the program for 2018.

“‘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,’ said Acting Deputy Under Secretary for Farm Production and Conservation Rob Johansson. ‘The decision is in response to requests by the dairy industry and a number of MPP-Dairy program participants.’

“To opt out, a producer should not sign up during the annual registration period. By opting out, a producer would not receive any MPP-Dairy benefits if payments are triggered for 2018. Full details will be included in a subsequent Federal Register Notice.  The decision would be for 2018 only and is not retroactive.”

The FSA update added that, “The voluntary program, established by the 2014 Farm Bill, provides financial assistance to participating dairy producers when the margin – the difference between the price of milk and feed costs – falls below the coverage level selected by the producer.”

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