Dairy farmers have a wide range of risk management tools available to help deal with the increased volatility of milk prices and feed costs. Options have increased in recent years, with more affordable premiums for the dairy Margin Protection Program (MPP); greater access for dairy producers to the Livestock Gross Management (LGM) program; and the introduction of the new Dairy Revenue Program (DRP). This page provides an overview of the leading national programs available through the U.S. Department of Agriculture.
The dairy Margin Protection Program (MPP-Dairy) was developed by NMPF through a lengthy, detailed and deliberative process in response to the dairy industry financial crisis of 2009.
When Congress eventually enacted the program in 2014, the MPP had been amended and diluted to the extent that it fell short of providing the protection required of an effective farm safety net program.
Over the following two years, NMPF staff gathered feedback on the program from producers across the country and compiled a set of proposals to help improve the program, which was approved by the NMPF Board on March 7, 2017.
In February 2018, Congress passed a $1.3 trillion spending bill that contained several dairy-related provisions, including reforms to the MPP. Those reforms included:
The spending package also lifts the $20 million annual cap on all livestock insurance, including the Livestock Gross Margin (LGM) program. This will allow USDA to develop a wider variety of additional risk management tools that will be especially important for larger dairy producers and can complement the MPP.
NMPF created a website, called Future for Dairy, that delves into the details of the program, provides the latest dairy economic data, and instructs producers on how to enroll.