Research: Ohio Dairy Web

Dairy Markets and Policy

Ohio Dairy Markets and Policy Web 2015

Your center for current information & links to dairy markets, prices, and dairy policy

Meet Cameron Thraen
AEDE/OSU Extension Dairy Marketing and Policy Specialist


Latest Dairy Markets, Trade, and Policy Outlook 2015:  Click here to access my latest presentation.  Dairy Outlook Presentation 2015

Latest News: Deadline extended to December 19, 2015.  See :  http://tinyurl.com/qfkjfqd

Dairy Policy Update: The deadline for completing the required signup for the Margin Protection Program is quickly approaching.  You must complete forms USDA CCC-781 and CCC-782 and file these forms with your county USDA Farm Services Agency no later than December 5, 2014.  Form CCC-781 is used to establish your dairy's production history.  This production history will be the largest value for milk marketed during the calendar years 2011, 2012 or 2013.  Filing Form CCC-781 does not obligate you to participate in this program.  Your intent to participate comes with filing form CCC-782.  This form establishes your selected coverage percent on you production history, and your election of a coverage level.  You may select a coverage percent ranging from 25% to 90% in 5% increments.  You may elect a coverage level ranging from $4.00 to $8.00, in 50 cent increments.  If you file form CCC-782 and do not elect either of these values, you will be assigned a coverage percent of 90% and a coverage level of $4.00.

After December 5, 2014, you will not be able to participate in the Margin Protection Program until the following year.  In 2015, you will be able to enroll during the period July 1, 2015 - September 30, 2015 for coverage in calendar year 2016.  If you have already filed form CCC-781 you will make your elections with form CCC-782 during that enrollment period.

We have created a complete website dedicated to helping you understand this new safety net program. At this website you will find a complete set of educational materials designed by a group of eight dairy economists from seven major universities.  This portfolio of material includes papers, videos, and narrated slide presentations, each designed to help you understand the new Margin Protection Program.   At this website you will find a Margin Protection Program Decision Tool.  This tool is simple to use, requiring only that you enter your CCC-781 production history.  The tool will then calculate for you the cost of any coverage percent and coverage level election you may select on form CCC-782.  Using the decision tool you will be able to see our forecast of the Margin Protection Program Margin for the coming 15 months.  You will also be presented with our assessment of the expected net benefits of your elections for each of the Margin Protection Program payment periods in the coming calendar year.  This forecast and the information created using the forecast is updated each day and reflects the most timely market information available.  You can access this website at:  www.dairymarkets.org/mpp

 

LGM-Dairy Margin Insurance Update:  If you decide to participate in the Margin Protection Program you may not participate in the Livestock Gross Margin insurance program offered by USDA Risk Management Agency.  However if you decide not to enroll in the Margin Protection Program you may wish to participate in the Livestock Gross Margin insurance program as a means to protect your income over feed cost margin.  If you are thinking about buying Livestock Gross Margin insurance, you will find important  educational information in the form of papers and videos at the www.dairymarkets.org website highlighted above.  Before purchasing LGM insurance product the Journal of Dairy Science article at the following link is a must read: 

Mean-reversion in income over feed cost margins: Evidence and implications for managing margin risk by US dairy producers.

 

To review additional information on milk production and market prices

Click on the Dairy Markets and Prices Update link located on the left.