USDA's Risk Management Agency Ensuring Milk Producers Not Inappropriately Penalized if Milk is Dumped
Monday, April 13th, 2020 -- 8:35 AM
(Wisconsin Ag Connection) -USDA's Risk Management Agency is ensuring that milk producers are not inappropriately penalized if their milk must be dumped because of recent market disruptions caused by the Coronavirus pandemic.In addition, RMA is extending inspection deadlines, waiving inspection requirements and authorizing more crop insurance transactions over the phone and electronically to help producers during the crisis. Specifically, RMA is allowing dumped milk to be counted as milk marketings for the Dairy Revenue Production or actual marketings for the Livestock Gross Margin for Dairy programs; and is permitting phone and electronic transactions for 2021 crop year sales and reporting dates, including options and endorsements. They are also extending the deadline for some perennial crop Pre-Acceptance Inspection Reports. COVID-19 shutdowns have caused disruption in the milk market and many dairy producers are dumping milk as a result.
For the 2020 calendar year, the agency is allowing Approved Insurance Providers to count dumped milk toward the milk marketings for the DRP or actual marketings for the LGM-Dairy programs regardless of whether the milk was sold. Producers will still have to provide to the AIPs supporting documentation from the cooperative or milk handler verifying the actual pounds dumped and that the milk was dumped. For more information on these and other market loss programs, contact your local USDA service center.
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