USDA insurance programme to aid local dairy farmers

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Publish time: 29th August, 2014      Source: www.efeedlink.com
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August 29, 2014

   

   
USDA insurance programme to aid local dairy farmers
   
   

   

US dairy farmers, affected recently by low milk prices and high feed cost, will soon be able to register for a new insurance programme, launched by the USDA.

   


The progamme provides payment to farmers when the difference between milk prices and feed prices decline to a specific level. In the previous programme, payments are made when milk prices sank at an extremely low level, but without accounting for their costs.

   


Farmers can buy catastrophic coverage for US$100 yearly. Payment will occurred if the difference between milk prices and feed costs sank to less than US$4 per hundred pounds of milk on average. If a larger margin is needed to make ends meet, farmers can buy additional coverage at a higher premium.

   


To help farmers in determining the amount of insurance needed, the USDA has made available an online tool.

   


Registrations will run from September 2 to November 28, according to US agriculture secretary, Tom Vilsack. He also added that state extension services and USDA's Farm Service Agency will provide training for farmers signing up for the programme.

   


US dairyfarmers have faced challenges in recent times even with good milk prices. Feed costs rose due to demand for corn from the ethanol industry and droughts, including one in 2012 which covered two-thirds of the nation. The price for benchmark December corn this week was US$3.67, compared to about US$5.90 two years ago.