With Deadline Looming, Welch Urges Dairy Famers to Sign Up for New Dairy Insurance Program
This morning at the U.S. Department of Agriculture's Williston office, Rep. Peter Welch, flanked by dairy farmers Eric and Jane Clifford, Vermont Agriculture Secretary Chuck Ross, and Vermont Farm Service Agency Director Bob Paquin, renewed his call for farmers to enroll in a new federal dairy insurance program. This Friday, December 5, is the last day to enroll in the Margin Protection Program (MPP) being administered by the USDA.
Welch and Senators Patrick Leahy and Bernie Sanders fought to include the program in the new Farm bill signed into law this year.
"After a long fight in Congress, dairy farmers finally have a real safeguard against the booms and busts of the market," said Welch. "I strongly encourage farmers to take a good hard look at this important program and sign up before Friday's deadline. While 2014 has been a good year, history tells us that milk prices can drop quickly and dramatically. This insurance program will give farmers peace of mind by insulating them from the punishing roller coaster ride of milk prices."
MPP is the only federal safety net available for dairy farmers when milk prices fall, replacing the expired Milk Income Loss Contract Program (MILC). It will offer a revenue risk management tool for dairy producers when the difference between the price of milk and price of feed falls below coverage levels that farmers themselves choose. Farmers not enrolling by Friday will not have another opportunity to do so until July 2015.
An administrative fee of $100 is required to enroll and provides the minimum catastrophic level of protection against margin losses for the coming year. Additional coverage may be purchased to protect more of your margin.
MPP information is available through:
· Local FSA offices throughout Vermont;
· The UVM Extension Service which can be reached at 802- 349-2966; and
Online at www.fsa.usda.gov. through which farmers will find a fact sheet and web-based tool to help determine appropriate coverage levels.
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