MPP Highlights

Qualified production for existing operations is calculated from 2011/2012/2103 proven production.
Production qualification does not roll forward. Consistent until we get a new Farm Bill (2018).
*unless republicans regain control and they revisit nutrition programs (my opinion)
Buying an existing Dairy operation can inherit historical production for the program. That historical
production can be separated from operation or production animals.
-You can sell production animals with historical production or maintain with facility.
-You can sell historical production independent of production animals or facility.
Production history does not decrease even if you reduce herd size or milk production
Production increase factor calculation for 2015: Proven production * 1.0087
The cutoff for entering the program is November 28th (day after thanksgiving) this year. Subsequent
years will be September 30th.
LGM-Dairy participants can sign up for MPP-Dairy but wont get coverage until LGM contracts end. FSA
will prorate premiums for the year.
Payouts based on 2 month pairs:
Pairs
Jan/Feb
Mar/Apr
May/Jun
Jul/Aug
Sep/Oct
Nov/Dec

Payment
Apr
Jun
Aug
Oct
Dec
Feb

Premiums paid in 2 installments: 25% by Feb 1. 75% by June 1. This may change for 2016.
MPP Fact sheet
http://www.fsa.usda.gov/FSA/newsReleases?area=newsroom&subject=landing&topic=pfs&newstype=p
rfactsheet&type=detail&item=pf_20140828_insup_en_mpp.html
FSA MPP Tool
http://www.fsa.usda.gov/FSA/pages/content/farmBill/fb_MPPDTool.jsp

Scott Brown (ag economist from Mizzou)

this excel is much prettier than the FSA one.
http://amap.missouri.edu/farm-bill.html

Covered production level premiums (available at FSA website)

Premium amounts based on the affiliation rule:

If owner has 50% ownership or more in multiple operations (crosses the corporate veil) premiums are
based on combined production in the program. Also if you own fractional ownership in multiple dairies
but the partners/members together own more than 50% in each spate operation that would also
qualify.
*if existing operations participate in the MILC program separately they would stay separate until a
change was made. i.e., ownership change, filing status, etc.
If you look at premium costs:
Operations less than 4 million lbs., because of premium costs, would most likely participate at the
lowest or highest level )
Operations more than 4 million lbs., because of premium costs, would most likely participate at lowest,
highest, or 6.50.
Regardless of size: 1st 4 million lbs. at tier 1, over tier 2.
MPP payments are subject to sequester