A.) Federal Milk Market Order Meetings scheduled for Early October - Bowling Green, KY; Macon, GA; and Asheville, NC
Recent requests to reduce diversion percentages for the months of August, September, October, and November in the Southeast have spurred a considerable amount of interest in the operations of milk markets in the Southeast, and ultimately, how various market rules may or may not affect a producer's pay price.
A great deal of information relating to appropriate market statistics was requested from both producers and handlers and published on the FMMO 7 website. In all, comments were submitted by 9 individuals, and 10 other organizations such as co-ops, producer associations, and other stakeholders in Southeast dairy markets.
All information related to this transparent process is available to the public at http://www.fmmaatlanta.com/ and then click the "What's New" tab. Each document is easily identified by name. (If you haven't already read them, why don't you take a few minutes to do that during your next break from fall harvest and seeding?)
Although the requests were cordially and reasonably denied by the FMMO 7 Market Administrator for valid reasons (the decision is attached), the process has served as a catalyst for a series of producer meetings to take place from October 7-9th in three locations across the Southeast.
The meetings and locations are as follows - all include our trade area: (See attachment for more details)
Tuesday, October 7; 10:00 am - 12 noon; Bowling Green, KY
Warren County Extension Office, 3132 Nashville Road, Bowling Green, KY 42101 (PH:270-842-1681)
Wednesday, October 8; 4:00 pm - 6:00 pm; Macon GA
Macon Farmers Market; 2055 Eisenhower Parkway; Macon, GA 31206 (PH:478-752-1097)
Thursday, October 9; 3:00 pm - 5:00 pm; Asheville, NC
Renaissance Asheville Hotel, 31 Woodfin Street, Asheville, NC 28801 (PH: 828-252-8211)
Valley Farmers Co-op will be happy to assist producers with more information regarding attendance at these meetings!
B.) New Margin Protection Program - the new Dairy Safety Net - opening information and links - Meeting being planned
On August 29, the Rules concerning the new Margin Protection Program for Dairy were published in the Federal Register - 18 pages that will affect your future. The program will be administered through your local FSA office.
These MPP rules are attached for your convenience; have your printer loaded. It is highly recommended that a producer make the time to read through these in full as the first step in understanding the MPP.
The program is not difficult, but due to the amount of information, it may take several times through to fully digest the concepts, and the bearing they will have on your operation. Repetition, in this case, is good. I attended a meeting last week in Atlanta, GA, featuring the leading dairy economists in the country, who spoke to several aspects of the program. You will be getting more details on that meeting in the coming days.
It was admitted that there remains some confusion about interpretation about some aspects of the program, but it is anticipated that is due to the newness of the program rules, and will be worked out shortly.
In the meantime, here are some key items to remember for starters:
1.) Producers have until November 28, 2014 to sign up at your local FSA office. This first year, that one sign-up period will cover both 2014 and 2015 production years. For years 2016-2018, the coverage sign-up period will be July 1 - Sept. 30 of the preceding year. (July 1-Sep 30 2015 for 2016 coverage).
2.) Your key production level will be the highest production total of the years of 2011, 2012, and 2013. This information can be obtained from your milk statements. It is recommended you should pull this information now in order to have it readily available.
3.) There will be a provision to calculate coverage for new operations.
4.) The "Dairy Production Margin" for the purposes of this program is the difference between the National All-Milk Price and the National Average Feed Cost, with calculations occurring each consecutive 2-month period. (Jan/Feb, Mar/Apr, May/June, July/Aug, Sep/Oct, and Nov/Dec.)
5.) For producers using LGM-Dairy, they must make a decision to use LGM-Dairy, or the new MPP; they cannot utilize both risk protection products.
6.) Producers will want to fine-tune their feed and rations costs in order to make best decisions on margin levels.
7.) The MPP will not replace, but will work in conjunction with, other risk protection measures such as grain contracts and milk future contracts. The MPP can also be utilized as a stand-alone risk-management tool - those decisions will be up to each producer, and will be more accurately known after calculations are performed.
8.) Since we serve a significant number of Jersey/high component herds, I've attached September's National All-Jersey Equity Newsletter. This publication describes not only the program, but explains some aspects that Jersey owners may want to consider in their calculations.
As always, Valley Farmers Co-op is here to assist our customers in any way possible. We will be emailing a regular series of reminders about timelines and with pertinent information to make sure you have the information you need to make the best decisions possible.
In addition, it is anticipated there will be a producer meeting in our area in the near future with some qualified speakers who will bring you the best information.
Additionally, you may want to start reviewing these very useful web locations (current as of Sept. 15):
General Dairy Programs - Home: Dairy Markets & Policy
Dairy Markets & Policy Milk production takes a leap up...and so do prices. Meanwhile global dairy prices are dropping. Mark Stephenson and Bob Cropp discuss the current situation and the outlook for prices.
Information Letter - Summary: (13 pgs): http://www.dairymarkets.org/PubPod/Pubs/IL14-01.pdf (Background, Basics, and General Explanations of Process)
Highlights of the Final Rule: (19 pgs): http://www.dairymarkets.org/PubPod/Pubs/IL14-02.pdf (Fairly easy to understand explanations of the Rule)
The Tool / Calculator itself: Dairy Markets & Policy (Take your time, study, and plug in accurate figures; NOTE - May take some time to load!)
Dairy Markets & Policy Margin Protection Program for Dairy
Click here to to see the Rules and Regulations for the Margin Protection Program for Dairy and Dairy Product Donation Program.
Click here to see the Margin Protection Program Tools Now Available.
A letter from Patrick S. Clark which reguested to Lower Diversion Percentages to zero.
More information regarding the Educational and Listening Sessions
Source: AgriVoice
9.16.2014