The USDA proudly supports dairy farmers. They understand that their job is demanding and requires long hours. They also know that dairy farmers sometimes need financial help to survive. That’s why the
USDA provides assistance for a variety of reasons including:
- Managing risk
- Disaster assistance
- Conservation
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Risk Management
There’s a lot of risk in being a dairy farmer. Despite the long hours of work that they put in, they cannot help the national price of milk or other dairy products. When feed costs more than the price of milk, dairy farmers could be facing a financial loss. The
Margin Protection Program for Dairy, however, helps to minimize that risk. The MPP pays dairy farmers the difference between milk profits and the price of feed.
You must be a dairy farmer that works with the USDA and you must sign up before June 1, 2018, in order to be eligible.
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Another program the USDA offers is the Livestock Gross Margin Insurance Plan for Dairy Cattle. This program is similar to the MPP. It provides dairy farmers protection against rising feed costs or falling milk prices. It basically limits the costs farmers pay for feed and creates the lowest prices allowed for milk. Dairy farmers can be eligible for this program monthly or 12 times per year.
Conservation
If you need help making conservation changes to your dairy farm, the USDA can help with the
Environmental Quality Incentives Program. The USDA helps dairy farmers come up with conservation efforts that include:
- Enhancing nutrients
- Maximizing management of manure
- Improving soil health
The USDA helps dairy farmers stay in business and profitable by stepping in and providing their assistance. This helps dairy farmers want to stay in business and therefore increases the supply of milk and other dairy products we have at our disposal in the United States.
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