Sign-ups for the 2016 Dairy Margin Protection Program begin July 1. This U.S. Department of Agriculture (USDA) news release says the voluntary program provides financial assistance to participating dairy operations when the margin – the difference between the price of milk and feed costs – falls below the coverage level selected by the farmer.

“More than half of our nation’s dairy producers enrolled in the 2015 program, which exceeded our expectations for the first year of the program,” said [Agriculture Deputy Secretary Krysta] Harden. “We are confident that dairy farmers across the country will again take advantage of this safety net program for 2016. USDA will continue outreach efforts, including partnering with cooperative extension services, to ensure dairy producers are fully informed about the protections that this safety net program can provide during periods of market downturns.”

The Margin Protection Program gives participating dairy producers the flexibility to select coverage levels best suited for their operation. Enrollment begins July 1 and ends on Sept. 30, 2015, for coverage in 2016. Participating farmers will remain in the program through 2018 and pay a $100 administrative fee each year. Producers also have the option of selecting a different coverage level during open enrollment each year. Margin Protection Program payments are based on an operation’s historical production. An operation’s historical production will increase by 2.61 percent in 2016 if the operation participated in 2015, providing a stronger safety net.

Dairy farmers can also use USDA’s online tool to help them decide which level of coverage will provide them with the strongest safety net under a variety of conditions. The enhanced Web tool is available at www.fsa.usda.gov/mpptool.