Dairy producers who were compelled to discard milk without pay during specified catastrophes in 2020, 2021, or 2022 are now eligible for USDA’s Milk Loss Program.
The USDA announced the launch of the Milk Loss Program (MLP), which will run from Monday until October 16. The program compensates dairy farmers for up to 30 days of lost output each year for milk producers and processors required to discard or remove milk in 2020, 2021, and 2022.
The MLP compensates producers who dumped milk or had their milk removed from the commercial market due to disasters such as “droughts, wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze (including a polar vortex), and smoke exposure that occurred in the calendar years 2020, 2021, and 2022.” Tornadoes are only deemed a qualified catastrophe occurrence for calendar year 2022, according to the USDA.
“Over the last three years, the United States’ dairy industry has been impacted by frequent and widespread weather-related disasters.” “These farmers are still dealing with supply chain issues, high feed and input costs, labor shortages, and market volatility,” said FSA Administrator Zach Ducheneaux.â?¯”For dairy producers, the reality is that cattle are milked at least twice a day, producing six to seven gallons of milk per cow per day on average.” That milk has to go someplace, and when it can’t get there or can’t be kept due to situations beyond a producer’s control, we have to step in. The Milk Loss Program would assist compensate farmers who are forced to discharge their milk due to natural calamities.”
According to the National Milk Producers Federation (NMPF), dairy producers produce a perishable product every day of the year. Dairy producers are “uniquely challenged by disaster events.” Given the Oct. 16 registration deadline, NMPF advised farmers to join in the program as soon as feasible.
“On top of the challenges posed by wild price swings and the COVID-19 pandemic, dairy farmers have faced an insufficient federal mechanism for dealing with unforeseen weather disasters since 2020, further straining finances at a time when strains have been difficult to bear,” said Jim Mulhern, NMPF president and CEO. “NMPF never accepted that situation, and we’re grateful for USDA’s months of hard work to finalize the compensation plan that will address this backlog of disaster assistance.”
The Milk Loss Program is funded by the federal funding legislation enacted by Congress in December and signed into law by the president. The law granted $10 billion in catastrophe losses for 2020 and 2021, as well as extra disaster funds for agricultural disaster losses in 2022.
Each calendar month when milk is discarded or withdrawn from the commercial market, the milk loss claim period begins. Each MLP application covers a one calendar month’s loss. If milk loss occurs in more than one calendar month as a result of the same qualifying weather event, each month needs a new application. According to the USDA, the length of annual claims is similarly restricted to 30 days every year.
