The Margin Protection Program for Dairy Producers (MPP-Dairy) replaces MILC and is effective through December 31, 2018.  The Margin Protection Program offers dairy producers: (1) catastrophic coverage, at no cost to the producer, other than an annual $100 administrative fee; and (2) various levels of buy-up coverage.   Catastrophic coverage provides payments to participating producers when the national dairy production margin is less than $4.00 per hundredweight (cwt).  The national dairy production margin is the difference between the all-milk price and average feed costs.  Producers may purchase buy-up coverage that provides payments when margins are between $4.00 and $8.00 per cwt.  To participate in buy-up coverage, a producer must pay a premium that varies with the level of protection the producer elects. – Read details about MPP-Dairy.

View the MPP-Dairy Summary and Graphics. This illustrates how payments would have differed from the former dairy program (MILC) that paid dairy producers $1.6 billion since 2009, whereas MPP-Dairy would have paid $2.54 billion.

Visit Webtool to Explore Coverage Options from the MPP-Dairy

In addition, the 2014 Act created the Dairy Product Donation Program.  This program is triggered in times of low operating margins for dairy producers, and requires USDA to purchase dairy products for donation to food banks and other feeding programs. – Learn more about the Dairy Product Donation Program (pdf)