The Pandemic Market Volatility Assistance Program contains a component that requires handlers and cooperative participants to provide dairy policy education to their dairy farmers. This webpage has been created to assist entities in meeting this requirement. Any or all of the information on this page can be used by participants for dissemination to dairy farmers. The links and information below summarize the many USDA programs that support U.S. dairy farmers.
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Federal Milk Marketing Orders (pdf)
Federal Milk Marketing Orders (FMMOs) establish certain provisions under which dairy processors purchase fresh milk from dairy farmers supplying a marketing area. Federal orders serve to maintain stable marketing relationships for all handlers and producers supplying marketing areas, thus facilitating the complex process of marketing fresh milk.
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Additional Brochures
- Federal Milk Marketing Order Area Map (pdf)
- Federal Milk Marketing Order Pricing Formulas
- How to amend a Federal Milk Marketing Order (pdf)
The Dairy Forward Pricing Program (DFPP) allows farmers to voluntarily enter into forward price contracts with handlers for pooled milk used in Class II, III or IV products under the Federal Milk Marketing Order Program. The program allows regulated handlers to pay farmers in accordance with the terms of a forward contract instead of paying the minimum Federal order blend price for pooled milk.
Dairy Market News covers the supply, demand and price situation every week on a regional, national and international basis for milk, butter, cheese and dry and fluid products and provides market statistics every week on a regional, national, and international basis for dairy products.
Federal Milk Marketing Order Statistics
Federal milk marketing order statistical reports are based on data complied from reports that handlers are required to file monthly with the market administrator who administers the respective Federal milk marketing order.
U.S. Grade Standards for Dairy are voluntary and aid in the marketing of milk and dairy products by providing a common language of trade through the development, improvement, and interpretation of standards, specifications and quality improvement programs.
National Organic Program – Dairy
The National Organic Program (NOP) develops rules and regulations for the production, handling, labeling, and enforcement of all USDA organic products.
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The Dairy Margin Coverage (DMC) program provides dairy operations with risk management coverage that will pay producers when the difference, or the margin, between the national price of milk and the average cost of feed falls below a certain level that is selected by the program participants.
To enroll or find more information on DMC, visit the DMC webpage.
Organic Certification Cost Share Program
The Cost Share Program provides organic producers and handlers with financial assistance to reduce the cost of organic certification.
Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish
Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish (ELAP) provides financial assistance to eligible producers of livestock for losses due to disease or certain adverse weather events or loss conditions such as blizzards and wildfires. This program is meant to cover losses that are not covered by the Livestock Indemnity Program and the Livestock Forage Disaster Program.
To find more information on ELP, visit the ELP webpage
Livestock Indemnity Program (LIP) provides benefits to eligible livestock owners or contract growers for livestock deaths in excess of normal mortality caused by eligible loss conditions, including eligible adverse weather, eligible disease, and attacks by animals reintroduced into the wild by the federal government or protected by federal law, including wolves and avian predators. In addition, LIP aids eligible livestock owners that must sell livestock at a reduced price because of an injury from an eligible loss condition. LIP payments for owners are based on national payment rates that are 75% of the market value.
To find more information on LIP, visit the LIP webpage.
The Farm Service Agency (FSA) offers direct and guaranteed loans to promote, build, and sustain family farms for a thriving agricultural economy. Loan types include: Direct Farm Loans, Farm Ownership Loans, Guaranteed Farm Loans, Farm Operating Loans, Down Payment Programs, and Youth Loans.
To find more information on Farm Loans, visit the Farm Loan webpage.
Important Forms
The below forms are the necessary forms to certify eligibility for FSA farm programs. If you have already filed the below forms with FSA, you do not need to refile unless your farming operation has changed or your previously filed forms are expired.
Highly Erodible Land Conservation and Wetland Conservation Certification (pdf) (AD-1026)
Adjusted Gross Income Certification (pdf) (AGI)
Farm Operating Plan for Entities (pdf) (CCC-902E)
OR
Farm Operating Plan for an Individual (pdf) (CCC-902I)
Contact Information
FSA service centers are available throughout the country at the county level. The link below is a portal to find the closest one to you. If you are farming in multiple counties, you must register in all the counties that you wish to participate in. However, the first county you register in will be considered your “recording county” and that is where you will submit the bulk of your paperwork.
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This Census is taken every five years and is key to getting necessary programs into areas most in need. Any operation that produces at least $1000 a year in sales or normally would have been sold at least $1000 in product is welcomed to participate.
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Environmental Quality Incentives Program
The Environmental Quality Incentives Program (EQIP) is a voluntary program that aids shareholders who want to implement measures to protect the soil, water, air, and other natural resources on their working land. These measures can include but aren’t limited to increased water use efficiency, increased air quality measures, installation of energy producing structures, and more.
View more information regarding NRCS and the EQUIP program
Important Forms
The below forms are the foundational forms for certifying eligibility for NRCS farm programs. If you have already filed the below forms with FSA, you do not need to refile unless your farming operation has changed or your previously filed forms have expired.
Highly Erodible Land Conservation and Wetland Conservation Certification (pdf) (AD-1026)
Adjusted Gross Income Certification (pdf) (AGI)
Farm Operating Plan for Entities (pdf) (CCC-902E)
OR
Farm Operating Plan for an Individual (pdf) (CCC-902I)
Contact Information
NRCS service centers are available throughout the country at the county level. The link below is a portal to find the closest NRCS service center to you. They are typically attached to FSA service centers for your convenience and ease when doing eligibility paperwork, as FSA is the agency that confirms eligibility before one can participate in NRCS programs.
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Dairy Revenue Protection (Dairy-RP) is designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level.
The Livestock Gross Margin Insurance Plan for Dairy Cattle (LGM-Dairy) provides protection when feed costs rise or milk prices drop and it can be tailored to any size farm within the contiguous United States. Prices for LGM-Dairy are based on simple averages of Chicago Mercantile Exchange Group futures contract daily settlement prices and are not based on the prices you receive at the market.
Contact Information
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The Chicago Mercantile Exchange (CME) publishes dairy futures and options, which serve as effective tools for hedgers to manage the risks inherent to the dairy industry and for speculators looking to capitalize on price or spread movement. The CME Dairy Complex shows futures for the following commodities: Class III Milk, Class IV Milk, Cheese, Butter, Nonfat Dry Milk, and Dry Whey.