Registration open for the 2022 iteration of the dairy farm support program


ALBANY COUNTY – The the registration period has started for the United States Department of Agriculture Dairy margin coverage program 2022, which is designed to insure dairy farmers with established production histories against thinning profit margins by issuing payments whenever the ratio between feed cost and all milk prices reaches a certain threshold.

Those interested should contact their USDA local service center. The registration period ends on February 18.

Farmers can enroll in the basic level of coverage, which is free except for an annual administration fee of $ 100, according to the USDA website. The coverage gives farmers federal money when the national milk production margin falls below $ 4.

For a premium per hundredweight that varies depending on the scale of the farm, farmers can increase their coverage to provide relief up to a production margin of $ 9.50, with coverage levels increasing by 50 cents up to $ 9.50. ‘to this limit.

The compensation received by the farmer is equal to the difference between his coverage limit and the margin, which is determined monthly. Thus, according to the National Federation of Milk Producers, farmers with maximum coverage received a payment of $ 0.77 per cwt in October, based on that month’s production margin of $ 8.73.

For the 2022 iteration of the program, the government is changing its feed price calculations so that they derive from the price of premium 100% alfalfa hay instead of the 50% premium, which it says ‘USDA, will better represent the real costs to farmers. The USDA says that this year “DMC payments were triggered from January through October for over $ 1.0 billion.”

Although the Company was unable to obtain local participation figures, the USDA States that 75 percent of dairy farmers in the United States are enrolled in the program and that New York State participation is just below the national average at 74 percent, or about 2,000 of the approximately 2,700 dairy farms in state that have an established production history. This year, New York dairy farmers received just under $ 103 million.

According to Federation of American Agricultural Offices, registrations accelerated after the advent of the COVID-19 pandemic, which rocked the industry, although the local farmers the Enterprise spoke to last year were not severely affected.

Although this particular program was authorized by the Farm Bill of 2018, it has existed in various forms with varying details since at least 2002, with the implementation of the Milk Income Loss Contract program, one of several federal programs. subsidies targeting agriculture.

In 2018, The Enterprise covered the sale of a Knox farmer’s dairy cows after falling milk prices made it difficult to earn a profit, which this farmer, Paul Keppler, blamed on the surplus generated by factory farms. .

At the time, a Farm Bureau spokesperson said the organization was pushing for changes to what was then known as the Dairy Margins Protection Program. After updating the program to its current form, the Farm Bureau Noted that increased margin limits and other factors have increased payments to farmers per cwt by more than 80 cents on average, calling the DMC an “attractive risk management tool.”


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