This week, Ag Secretary Tom Vilsack announced that over half of the nation’s dairy producers, more than 23,000 enrolled in the new margin protection program. The safety net provision was created by the 2014 Farm Bill. National Milk Producer Federation’s Chris Galen credits the two sign up extensions granted at the last part of 2014 for helping get more producers to sign up.
Galen says another factor that led to a surge in sign up was the drop in commodity prices.
Galen says the margin program gives dairy producers some type of protection against market and weather factors.
The voluntary margin protection program gives financial help to participating farmers when the margin, the difference between the price of milk and feed costs falls below the coverage level selected by the farmer.