John Newton, Chief Economist, National Milk Producers Federation

USDA's Farm Service Agency recently released the Results of 2016 MPP Enrollment providing MPP-Dairy participation data for the 2016 coverage year. Highlights of the data indicate that more than 23,000 dairy operations representing 162.3 billion pounds of milk enrolled in MPP-Dairy for the 2016 coverage year. Given USDA's January 12 projection for 211.8 billion pounds of milk produced in 2016, the milk enrolled in MPP (Margin Protection Program for Dairy) represents 77 percent of the U.S. milk supply and 51 percent of the licensed dairy operations. These participation rates are down slightly from last year as 80 percent of the U.S. milk supply and 55 percent of the licensed dairy operations participated in MPP-Dairy during 2015.

Milk pounds eligible for MPP-Dairy benefits are selected by the participating dairy operation and may range from 25 percent to 90 percent of the farm's production history. On average, participating dairy operations elected to cover 88 percent of the MPP-Dairy production history. As a result, from a risk management and farm safety net program perspective, more than two-thirds of the projected U.S. milk supply in 2016 will be eligible for payment under MPP-Dairy if margins fall to catastrophically low levels this year.

In order to provide a more detailed perspective on MPP-Dairy participation patterns in 2016, today's Hoard's Dairyman Intel features state-level maps of MPP participation for the 2016 coverage year. There are three state-level MPP participation maps available to view:
  • Percent of licensed dairy operations enrolled in MPP
  • Percent of projected 2016 milk production covered under MPP
  • Percent of projected 2016 milk production enrolled in MPP
Users may then select a state within each map to view the state-level distribution of participating farms, covered milk or production history by MPP-Dairy coverage level.

To comment, email your remarks to intel@hoards.com.
(c) Hoard's Dairyman Intel 2016
February 1, 2016
Subscribe to Hoard's Dairyman Intel by clicking the button below