The PMVAP update and the new ODMAP will allow USDA to better help small and medium-sized dairy enterprises that survived the pandemic and are now facing new difficulties.
“The Biden-Harris administration continues to meet its pledges to cover gaps in pandemic aid for producers. “USDA is announcing a second batch of roughly $100 million payments to finish off the $350 million commitment under PMVAP via partnerships with dairy handlers and cooperatives to make the payments,” said Jenny Lester Moffitt, USDA Under Secretary for Marketing and Regulatory Programs. “The USDA is also introducing additional aid aimed at small to medium-sized organic dairy producers to help with expected marketing expenses as they confront a number of obstacles ranging from weather to supply-chain issues.”
Market Volatility Assistance Program in the Event of a Pandemic
PMVAP provides assistance to producers who obtained a reduced value as a result of market irregularities induced by the pandemic and subsequent Federal regulations. Because of the increase in the production ceiling, the USDA’s Agricultural Marketing Service will issue PMVAP payments to qualified dairy producers for fluid milk sales ranging from 5 million to 9 million pounds from July through December 2020. This amount of output was not eligible for payment under the PMVAP’s first round. Payment rates will be the same as in the previous round: 80% of the income difference each month for fluid milk sales ranging from 5 million to 9 million pounds from July to December 2020. USDA will once again distribute funds via agreements with independent handlers and cooperatives, with handlers reimbursed for allowable administrative expenses. USDA will inform handlers of qualifying producers of the chance to participate.
More information regarding the increased PMVAP production quota may be found at www.ams.usda.gov/pmvap.
Program for Organic Dairy Marketing Assistance
The new ODMAP, which will be managed by the USDA’s Farm Service Agency, is meant to assist smaller organic dairy farmers that have experienced a unique mix of obstacles and rising expenses in recent years. The continuing epidemic and drought conditions throughout the nation have exacerbated these difficulties. For 2023, the FSA intends to provide payments to cover a percentage of small organic dairy producers’ expected marketing expenditures. The final amount spent will be determined by enrolment and each producer’s estimated output, although ODMAP has been granted up to $100 million.
ODMAP’s support will be supplied using leftover Commodity Credit Corporation monies from previous pandemic assistance initiatives. Based on national marketing cost estimations, the aid will cover up to 75% of qualifying organic dairy farmers’ future expected marketing expenditures in 2023. This aid will be made available via a simplified application procedure based on a nationwide per hundredweight payment. The subsidies will be set at the first five million pounds of predicted output, in line with current dairy programmes that aid smaller dairies most susceptible to marketing issues. This programme is still in the works.
As further information regarding the Organic Dairy Marketing Assistance Program becomes available, it will be posted and updated on www.farmers.gov.
The United States Department of Agriculture provided this article.
