The National Milk Producers Federation has released recommended changes to the Margin Protection Program in the next Farm Bill. The Federation says the proposed changes will ensure an effective safety net for the nation’s dairy farmers. The recommendations range from changing the way dairy feed costs are calculated to providing farmers greater flexibility in signing up for coverage and using other risk management tools. The proposal includes restoring the feed cost formula to levels first proposed in the 2014 Farm Bill that were cut 10 percent by Congress. Federation chair Randy Mooney says fixing the feed formula “would have a noticeable impact on the way margins are calculated” in the program.
The request also seeks changes to how the Agriculture Department determines the individual monthly prices of feed, adjustments to premiums, making margin determinations monthly rather than bimonthly, expanding the Livestock Gross Margin program, and allowing producers to use both the Margin Protection Program and Livestock Gross Margin program simultaneously.
Source: NAFB News Service