The Margin Protection Program for Dairy producers (MPP-Dairy) was established as part of the 2014 Farm Bill and was generally very unpopular with dairy producers.  The program was drastically changed in the 2019 farm bill and is now called Dairy Margin Coverage (DMC).  DMC works very similar to MPP-Dairy, but offers higher coverage levels, lower premiums, and more overall flexibility.  For the year, 2019, the program is “in-the-money” for dairy producers covering up to 5 million lbs of milk production annually.  

An educational effort was needed to make certain that producers understood the changes made to the program and could make an informed decision about enrollment for the 2019 calendar year.  However, given the small and shrinking nature of Kentucky’s dairy industry, traditional face-to-face programing was not practical in most cases.  One face-to-face program has been held in Greensburg, KY thus far, but educational materials were sent directly to extension ANR agents and two different articles were written for Kentucky Dairy Notes and the Economic and Policy Update.  Producers were strongly encouraged to enroll up to 5 million lbs of milk production at the $9.50 coverage level.

While it is impossible to know exactly how many producers chose the $9.50 coverage level as a direct result of extension efforts, the direct impact from enrollment at that level was significant.  A Kentucky dairy herd with a production history of 3 million lbs, would be expected to receive a net gain from DMC participation of more than $8,000.  Programs and materials also provided information for producers considering discounted long-term signup, comparing DMC margins to LGM-Dairy margins, and Dairy Revenue Protection Insurance.