In numbers released by the dairy Margin Protection Program (MPP), Wisconsin leads the country in the amount of MPP payments it has received in 2018. Wisconsin farmers received $36,794,124 to date, according to USDA’s Farm Service Agency which posted a list of state-by-state payments. At $36 million Wisconsin has received just under 24% of the total of $155,264,926 USDA has distributed so far this year. New York came in second, with payments of $15,397,861, followed closely by Minnesota, with payments of $15,085,305. Pennsylvania farmers received $13,085,041. California, the number one milk producing state in the nation, received $7,078,760. This is because California dairies are much larger than the national average, and fewer qualify for Tier 1 coverage on the first 5 million pounds of milk production. Based on current futures markets for feed and milk, it appears more indemnity payments are on the way. It appears a June indemnity of more than $2/cwt is likely, and a 50¢/cwt indemnity is possible in July. After that, margins have recovered sufficiently above $8 so that indemnities would no longer be triggered for the rest of the year.
Wisconsin has Received 24% of MPP Payments So Far in 2018
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