UW-Madison Economist Says Don't Count Out Dairy Margin Coverage Program Yet
Thursday, April 23rd, 2020 -- 9:22 AM
(Wisconsin Ag Connection) -Although U.S. Agriculture Secretary Sonny Perdue has expressed disinterest in reopening the Dairy Margin Coverage program, a University of Wisconsin-Madison economist says the final decision is ultimately up to lawmakers.In an episode of Dairy Signal this week, hosted by the Professional Dairy Producers of Wisconsin, Dr. Mark Stephenson said the proposal is not off the table yet. Lawmakers and farm groups have been asking the USDA to consider reopening the program and make payments retroactive to January 1 due to the coronavirus pandemic. But Perdue said last week that insurance programs are not meant to be implemented after people need it. Stephenson also explained what he knew about the guidelines for USDA's farm relief package, which was also unveiled last week. There would also be a $125,000 cap per farm with payments estimated around $1.60 per hundredweight. It has not been determined if losses would be based on historic production averages or total production from March, according to Stephenson.
Meanwhile, UW-Madison Assistant Professor of Dairy Science Dr. Heather White said farmers who are being asked to trim their milk production are facing management practices they have never seen before. She advised producers to avoid strategies that will make increasing production again in the future difficult. Stephenson wrapped up the program saying he thinks consumers care about what's going on in farm country amid the COVID-19 pandemic. PDPW's Dairy Signal continues on Thursday with presentations from Ag Economist Dan Basse and Professor Dr. Luiz Ferraretto of the University of Florida, who will talk about the latest market outlook and insights on cow-feeding strategies.
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