Dairy producers may now opt out of MPP-Dairy

By MAA

The USDA Risk Management Agency recently announced that dairy producers can now opt out of the Margin Protection Program for Dairy (MPP-Dairy) for the 2018 coverage year, according to Aaron Gransee of Investors Insurance Services, a division of Investors Community Bank.

“This is an exciting announcement for area dairy farmers as it allows them to opt out of MPP and potentially increase their risk protection,” Gransee said.

MPP-Dairy, administered by the Farm Service Agency (FSA), and the Livestock Gross Margin for Dairy policy (LGM-Dairy), administered by the Risk Management Agency (RMA), offer similar risk management protection for dairy producers. Previously, under the Federal Crop Insurance Act, producers were prohibited from participating in both programs at the same time. MPP-Dairy required producers to maintain coverage through 2018, or until the MPP-Dairy program ended or was modified.

On Aug. 31, FSA announced producers can opt out of the MPP-Dairy program for the 2018 crop year. Producers who opt out of MPP-Dairy for the 2018 coverage year will be eligible to purchase LGM-Dairy beginning with the November 2017 sales period, with insurance coverage beginning in January 2018 in accordance with the Commodity Exchange Endorsement for Livestock Gross Margin for Dairy Cattle.  This will allow producers to transition from MPP-Dairy to LGM-Dairy without a lapse in coverage and will ensure MPP-Dairy and LGM-Dairy coverage do not overlap.  Producers still may not participate in both MPP-Dairy and LGM-Dairy programs at the same time.

Investors Insurance Services offers a variety of agricultural insurance products for farms of all sizes. The ag insurance specialists at Investors Insurance Services are available to work with farmers on everything from choosing coverage to answering questions about policies and filing a claim.