Dairy farms encountering setbacks due to extreme weather events have received promising news. The U.S Department of Agriculture (USDA) has announced the Milk Loss Program (MLP), designed specifically for dairies that had to dispose of milk without compensation, primarily because of weather events and their related challenges, like power outages and blocked roads, between 2020 and 2022.
This initiative is being overseen by the Farm Service Agency (FSA). For those eager to apply, registration opens on Sept. 11 and closes on Oct. 16, 2023.
FSA's Zach Ducheneaux spoke about the importance of this program. He highlighted the consistency of dairy production and the need to support producers when uncontrollable events prevent the milk from reaching markets.
President Biden has played a key role in ensuring funds for such assistance. In December 2022, he approved a law allocating $10 billion for losses, including milk, for 2020 and 2021. Around $3 billion has been set aside for 2022 losses.
To benefit from MLP, dairy farms must have faced losses from specific disasters like droughts, wildfires, hurricanes, and even tornadoes (only for 2022). Applications are month-specific, meaning losses across multiple months need separate applications.
The application process involves submitting an MLP form, marketing statements, and a detailed record of milk removal circumstances. Some producers might already have the necessary paperwork with the FSA, but for those unsure, a check with the local FSA office is recommended.
When it comes to MLP payments, the calculation considers factors like the number of milking cows and days of milk removal. Payment rates differ based on the producer type, with underserved producers receiving a higher percentage. And while there are no Adjusted Gross Income (AGI) limits for MLP, there are payment restrictions based on a farm's income.
Photo Credit: gettyimages-vm
Categories: Nebraska, Livestock, Dairy Cattle