So what does this mean?
The Margin Protection Program, created in 2014, a safety net for dairy farmers which consists of support if the difference between milk and animal feed prices drop below a certain level; the level is picked out by the consumer (http://1.usa.gov/1NnyxyT).
Farmers pay an annual fee, which in turn has their back if they ever experience a tragic event that would could cause them to not be able to produce or sell their milk anymore. Farmers must pay the annual fee each year if they would like to continue protection, and farmers also pay premiums which qualifies them for a higher protection plan.
Simply put, it's risk and crisis preparation.
Dairy is dying.
There are many dairy products we, as consumers, use every day and do not realize where it comes from. Dairy farming has become a huge expense and burden to farmers nowadays. Kids grow up, leave the farm and don't turn around and think twice about it, which is their prerogative and absolutely fine.
However, what happens to the aging farmer who can't do the work by his/herself?
What happens to farms when milk prices drop and there isn't anyone who can offer assistance?
The towel gets thrown in.
This could be a contributing factor as to why there are less than 90 dairy farms left in North Dakota, or why there are only a few dairy farms left in one of the most densely populated dairy townships in Minnesota.
The Margin Protection Plan (MPP) is a voice and a hand for dairy farmers. When they are entrusted by the American people to produce and care for a detrimental product, they need to have someone to turn to in times of hardship.
While not all protection plans are perfect, the MPP tries to offer assistance to those farmers who supply us with our dairy delicacies.
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