Minnesota dairy producers are frustrated that lower milk prices have not triggered a payment under the new margin protection program. Minnesota Milk Producers Association President Pat Lunemann says the new program is based on the revenue or margin in a dairy operation so farmers aren’t receiving payments, even though milk prices have dropped substantially from last year’s record levels.

Lunemann says the margin protection program was put in place as a risk management tool for producers and not a financial replacement.

He says it’s difficult for most dairy producers to adjust to having a safety net program based on revenue, rather than a full-fledge price support program.

Lunemann says producers need to realize the previous support price program is not going to return and the margin program is all they have in place for risk management.