COMMODITY PROGRAMS:
A FARMER’S PERSPECTIVE
AAE 320
Paul D. Mitchell
Goals
• Provide an overview federal farm programs,
focusing on commodity crops
• To understand how these commodity support
programs operate at the individual farm level
• Cover crop insurance and disaster aid later
USDA spends about $150
billion/year (~4%), mix of
mandatory & discretionary
Same data looked
at by Department
• USDA the 5th
largest bubble
1) DHHS
2) SS
3) DoD
4) Net Interest
5) USDA at
$154B in 2013
Source: http://www.tableausoftware.com/public/gallery/2013-us-federal-budget
Most USDA Spending for SNAP Benefits
83% Mandatory: SNAP, crop
insurance, commodity support,
conservation programs
Source: http://www.obpa.usda.gov/budsum/FY14budsum.pdf
Farm Bill
• Every 6 years, Congress and the President pass a
Farm Bill that sets agricultural, conservation and
food policy for several years
• Agricultural Act of 2014
• Food, Conservation and Energy Act of 2008
• Farm Security and Rural Investment Act of 2002
• Federal Agriculture Improvement and Reform Act of 1996
• Food, Agricultural, Conservation and Trade Act of 1990
Farm Bill
• Huge document (357 pages), with lots of “titles”
that define federal ag programs in that area
• I. Commodities
II. Conservation
• III. Trade
IV. Nutrition
• V. Credit
VI. Rural Development
• VII. Research and Related Matters
• VIII. Forestry,
IX. Energy
• X. Horticulture
XI. Crop Insurance
• XII. Miscellaneous
• See class web page for link
Farm Bill Spending by Category
Source: http://www.ers.usda.gov/agricultural-act-of-2014-highlights-and-implications.aspx
Farm Bill Spending
• Most USDA federal spending goes for food and
nutrition programs
• SNAP (Food Stamps), school lunch/breakfast, etc.
• Payments to Farmers
• Crop Insurance, Commodity Support, Disaster
Assistance and Conservation Payments
US Net Farm Income (Cash)
150
US NFI ($B)
120
90
60
30
0
1990
1995
2000
2005
2010
2015
% Net Cash Income from Govt. Payments
(not including premium subsidies or indemnities)
Crop Insurance
$8.3 billion
Average Annual
Outlays Under
2008 Farm Bill
Direct Payments
(DP) $4.9 billion
Risk
Management
Commodity
Programs
$8.4 billion
$5.9 billion
(field crops)
(field & specialty crops)
Non-insured Disaster
Assistance (NAP)
$0.1 billion
Supplemental Revenue
Assistance Payments
Program (SURE)
Ad hoc disaster payments
Emergency Assistance for
Livestock, Honey Bees, and FarmRaised Fish Program
Farm
Safety
Net
$15 B
Disaster
Assistance
(crops & livestock)
$0.8 billion
Source: http://ncseonline.org/NLE/CRSreports/10Oct/R41317.pdf
Counter-Cyclical Payments
(CCP) $0.559 billion
OR
Average Crop Revenue
Election (ACRE) $0.311 B
Marketing Assistance Loans
$0.225 billion
Loan Deficiency Payments
(LDP) $0.225 billion
Livestock Indemnity
Program
Livestock Forage Disaster
Program
Tree Assistance Program
Emergency Disaster Loans
Crop Insurance
$8.3 bil
Average Annual
Outlays Under
2008 Farm Bill
2014
Direct Payments
(DP) $4.9 bil
Risk
Management
Commodity
Programs
$9.0B
$8.4 bil
(+ 6%)
$4.4B
$5.9
bil
(field & specialty crops)
Non-insured Disaster
Assistance (NAP)
$0.1 bil
Supplemental Revenue
Assistance Payments
Program (SURE)
Ad hoc disaster payments
No
Change
Emergency Assistance for
Livestock, Honey Bees, and FarmRaised Fish Program
(field crops)
(-25%)
Farm
Safety
Net
13.4 B
$15
(- 10%)
Disaster
Assistance
(crops & livestock)
$0.75 bil
Source: http://ncseonline.org/NLE/CRSreports/10Oct/R41317.pdf
Counter-Cyclical Payments
(CCP) $0.559 bil
OR
Average Crop Revenue
Election (ACRE) $0.311 bil
Marketing Assistance Loans
$0.225 bil
No
Change
Loan Deficiency
Payments
(LDP) $0.225 bil
Livestock Indemnity
Program
No
Change
Livestock Forage Disaster
Program
Tree Assistance Program
Emergency Disaster Loans
Geography of Farmer Support
Source: http://www.ers.usda.gov/Briefing/FarmIncome/nationalestimates.htm
2009 Total Payments (DCP, ACRE, LDP,
SURE, MILC, CRP, Premium Subsidies)
Program Payments by Farm Type
• Rural Residence:
< $250,000 and not
farm as occupation
(1.2 million farms)
• Intermediate:
< $250,000 and
farm as occupation
(300,000 farms)
• Commercial:
> $250,000
(220,000 farms)
Main Point
• Federal commodity support and conservation programs
•
•
•
•
provide $15 billion/year
Important part of farm income for full-time farms
37% of all farms received government payments in 2009
• Lots of rural residences do not receive payments
Payments in 2009 averaged $11,549 for those receiving
payments
• 5.5% of gross cash income
• 23.6% of net cash income
Lots of different programs
Federal Agricultural Support Programs
• Program we will discuss
• Commodity Support
• Price Loss Coverage (PLC)
• Agricultural Risk Coverage (ARC)
• Marketing Assistance Loans (MAL)
• Dairy Margin Protection Program (MPP)
• Review each program, focusing on how each
program works from a farmer's perspective
• Crop Insurance
• Next Section
Conservation Programs: USDA-NRCS
Natural Resource Conservation Service
• Conservation Reserve Program (CRP)
• Removes land from crop production
• [land sparing]
• Environmental Quality Incentives Program (EQIP)
• Payments to adopt best management practices
• [land sharing]
• We will not cover conservation programs here,
many more programs, see list:
http://www.nrcs.usda.gov/programs/
Commodity Support Programs
USDA Farm Service Agency (FSA)
• Programs administered by the USDA Farm
Service Agency (FSA)
• PLC, ARC, MAL/LDP, MPP
• Each county has a county FSA office
• Farmers/land owners sign up each year—file
specific forms for each program by specific dates
• Programs often have reporting requirements:
acres of each crop planted, where planted,
production (yield) reports
Eligibility for Commodity Support
• Farmer must have Base Acres to be eligible for
PLC/ARC (commodity support) subsidies
• Do not need Base Acres for MPP or MAL/LDP
• Officially designated by FSA Farm Serial Number
• Farms often farm more than one FSA farm
• Registered with FSA office in each county
• Stays with the land, not the farmer
• Each FSA farm has establish Base Acres and
Program Yields used for PLC
Base Acres
• Average acres of each program crop historically
grown on a farm at first enrollment years ago
• Updated in 2014 using 2009-2012 averages
• Previous update in 2003 using 1998-2001 averages
• Farm could not increase total farm Base Acres,
but could reallocate Base Acres to different crops
based on shares of crops planted 2009-2012
• Base Acres do not equal what actually plant now
• Decoupling: Ag policies are not supposed to
directly influence farm production decisions
• How many acres and what crops plant
• Separate eligibility from what planted now
Payment Yield
• Historical average yield for program crops grown
on an FSA farm
• Updated in 2014: 90% of 2008-2012 average
• Previous update in 2003 using 1997-2001 yields
• Payment Yields lower than farm’s average yields
• Final outcome for each FSA farm: Base Acres for
each program crop and associated Payment Yield
• Example: a 100 acre FSA farm has 50 corn base acres
with a 135 bu/ac payment yield and 25 soybean base
acres with a 31 bu/ac payment yield
Program Crops
• Barley, Canola, Corn , Cotton, Crambe, Dry Peas,
Flaxseed, Grain Sorghum, Chick Peas (Large and Small),
Lentils, Mustard Seed, Oats, Peanuts, Rapeseed, Rice
(Long Grain and Medium/Short Grain), Safflower, Sesame
Seed, Soybeans, Sunflower Seed, Wheat
• Major WI Program Crops
• Corn, Soybeans, Oats, Wheat
• Corn silage is a type of corn
• NOT program crops
• Alfalfa/hay, fruits and vegetables (potato, cranberry)
New Commodity Support Programs in 2014
• Price Loss Coverage (PLC)
• Establishes a price floor based on national
marketing year average price
• Can buy Supplemental Coverage Option (SCO)
crop insurance as an add-on option [covered
later]
• Agriculture Risk Coverage (ARC)
• Establishes a revenue floor
• County revenue by crop or Individual revenue
for whole farm
Commodity Support Programs
• 3 Options
1) Price Loss Coverage (PLC)
• Agriculture Risk Coverage (ARC)
2) County ARC (ARC-CO) by crop
3) Individual ARC (ARC-IC) for whole farm
Price Loss Coverage (PLC)
• Each program crop has a set “Reference Price”
• Corn $3.70, Soybeans $8.40, Wheat $5.50, Oats $2.40
• If the National Marketing Year Average Price is less than
the Reference Price, PLC payments are made
• PLC PaymentRate = ReferencePrice – MYAPrice
• PLC Payment =
85% x BaseAcres x PaymentYield x PLC PaymentRate
• Corn/Soy marketing year: Sept 1-Aug 31
• If elect PLC, eligible to buy Supplemental Coverage
Option (SCO) crop insurance [covered later]
Simple PLC Example
• Suppose USDA announced 2014 National Marketing Year
Average Price of corn is $3.50
• The corn Reference Price is $3.70, so PLC Payment Rate
= $3.70 – $3.50 = $0.20/bu
• If have 100 corn Base Acres with a Payment Yield of 140
bu/ac, then your PLC payment would be
• 85% x 100 ac x 140 bu/ac x $0.20/bu = $2,380
• USDA Announced 2014 MYA prices in September 2015:
• Corn: $3.70, Soybean $10.10, Wheat $5.99
• None these triggered PLC payments for 2014
Think Break #15
• You have a farm with
a) 30 corn base acres with a 130 bu/ac payment rate
b) 20 soybean base acres with a 30 bu/ac payment rate
• You signed up for PLC and the national marketing year
average price is $3.55 for corn and $8.50 for soybeans
• What is your PLC payment?
• Reference Prices: Corn=$3.70, Soybeans=$8.40
• PLC PaymentRate = ReferencePrice – MYAPrice
• PLC Payment = 85% x BaseAcres x PaymentYield x PLC
PaymentRate
Agriculture Risk Coverage (ARC)
• County ARC payments made if Actual County Revenue is
•
•
•
•
•
less than County Guarantee
County Benchmark = 5-Year Olympic Average County
Yield x 5-Year Olympic Average MYA Price
• Use PLC Reference Price if higher than MYA Price
• Use 70% County T Yield if higher than County Yield
County Guarantee = 86% of County Benchmark
Actual Revenue = County Average Yield x MYA Price
ARC Payment Rate = County Guarantee – Actual County
Revenue, up to 10% of County Benchmark
ARC Payment = 85% x Base Acres x ARC Payment Rate
Unofficial Corn 2014 Example for St. Croix County
Year
2013
2012
2011
2010
2009
Yield
85.4
165.6
164.6
172
167
Price
4.46
6.89
6.22
5.18
3.55
• Olympic Average Yield = 165.7
• Olympic Average Price = 5.29
• ARC County Benchmark = 5.29 x 165.7 = $876.55
• ARC Guarantee = 86% x $876.55 = $753.83
• Maximum ARC Payment = 10% x $753.83= $75.38
Unofficial Corn 2014 Example for St. Croix County
• Hypothetical Example: Suppose 2014 County ARC
•
•
•
•
•
•
Guarantee is $753.83 for corn in St. Croix County
Suppose 2014 actual USDA yield in St. Croix County is
160 bu/ac and 2014 MYA corn price is $3.50
Actual revenue is 160 x 3.50 = $560/ac, triggers payment
ARC Payment Rate = 753.83 – 560.00 = $193.38/ac, but
exceeds max payment, so ARC Payment Rate = $75.38
ARC Payment = 85% x BaseAcres x ARC Payment Rate
ARC Payment = $75.38 per corn base acre
ARC pays well in times of long-term declining prices due
to 5-year Olympic averages
Source: FarmDOC, U of IL: http://farmdocdaily.illinois.edu/2015/11/2014-arc-co-payments-release-county-yields.html
Source: FarmDOC, U of IL: http://farmdocdaily.illinois.edu/2015/11/2014-arc-co-payments-release-county-yields.html
Source: FarmDOC, U of IL: http://farmdocdaily.illinois.edu/2015/11/2014-arc-co-payments-release-county-yields.html
Main Point
• County ARC varies by county
• Main idea: like county-level revenue insurance
with an 86% coverage level
• Difference from Crop Insurance
• Uses 5-Year Olympic Average prices and yield to
determine guarantee
• Uses national marketing year average price as
the actual price
Agriculture Risk Coverage (ARC)
• Individual ARC based on revenue from all program crops
•
•
•
•
as a whole for an FSA farm, not crop by crop
To be simple, assume 2 program crops (corn & soybeans)
Benchmark Revenue by Crop = 5-Year Olympic Average
of (Yield per Planted Acre x MYA Price)
Individual Benchmark Revenue =
(Corn Acres/Total Acres) x Corn Benchmark Revenue +
(Soy Acres/Total Acres) x Soy Benchmark Revenue
Individual Guarantee = 86% of Farm Benchmark Revenue
Agriculture Risk Coverage (ARC)
• Individual ARC Payment Rate = Farm Guarantee – Actual
Farm Revenue, up to 10% of County Benchmark
• Individual ARC Payment = 65% x Base Acres x Individual
ARC Payment Rate
• Maximum is 10% of County Benchmark
• Actual Revenue = (Corn Production x MYA Corn Price) +
(Soy Production x MYA Soy Price) / Total Planted Acres
• Use PLC Reference Price if higher than MYA Price
• Use 70% County T Yield if higher than your Yield
Corn
Year Yld Price Revenue
2013 175 4.50 787.50
Acres 2012 150 6.89 1,033.50
300 2011 185 6.22 1,150.70
2010 170 5.18 880.60
2009 150 3.55 532.50
Crop Benchmark 900.53
Hypothetical Example
• Individual Benchmark =
•
•
Soy
Year Yld Price Revenue
2013 4312.70 546.10
Acres 2012 4514.40 648.00
200 2011 5112.50 637.50
2010 43 11.30 485.90
2009 35 9.59 335.65
Crop Benchmark 556.50
•
•
(300/500) x 900.53 +
(200/500) x 556.50 =
$762.92
Individual Guarantee =
86% x $762.92 = $656.11
“Actual” 2013 Corn =
(300 x 160 x $4.62) +
(200 x 40 x $11.36) /500 =
$625.28/acre
Payment Rate = 656.11 –
625.28 = $30.83
ARC Payment = 65% x
Base Acres x $30.83
ARC/PLC
• In fall 2014 and winter 2015, land owners and operators
• Reallocated base acres among crops
• Chose ARC or PLC for their program crops
• Lots of Extension programming, ag media attention, etc.
• A few slides from my outreach
Decision Aids: U of IL with USDA Funding
http://fsa.usapas.com/ (no longer active)
ARC-CO
SCO
PLC
St Croix County
Comparing Average ARC Payments
($/Ac) Across Counties (with CBO prices)
40
35
30
25
20
Corn
Soybean
15
10
5
0
Buffalo
Pepin
Pierce
Dunn
Eau
Claire
St Croix
Main Point
• When choosing Base Acre Reallocation
• Get as many Corn base acres as you can
• Corn > Soybean ≥ Wheat >Oats
• What about County ARC versus PLC?
• Depends on prices use/assume, but generally
ARC does better
• Tool has 3 options for average price
• 1) CBO futures prices: higher
• 2) USDA WASDE prices: lower
• 3) FAPRI price estimates: just below CBO
These are
MEAN prices
CORN
SOYBEAN
ARC-CO
PLC + SCO
ARC-CO
PLC + SCO
ARC-CO
PLC + SCO
ARC versus PLC for Corn and Soybean
• If your focus is on total payments, which is better
depends on where you think crop prices are
going over the next 5-6 years
• If you are optimistic on corn prices, ARC does
better than PLC + SCO: (by ~$15 in Pierce)
• If you are pessimistic on corn prices, PLC + SCO
does a better than ARC: (by ~$3 in Pierce)
• ARC on soybean always does better than PLC +
SCO (by $5-$10/ac in most counties)
• Similar trends for corn and soybeans in different
counties, but dollar amounts differ
ARC versus PLC
• Corn & Soybean: ARC much higher than PLC if average to
•
•
•
•
high prices, only a little less than PLC if low prices
• If PLC beats ARC, on average it will not be by a lot
For most farms, ARC will do just fine and not be much less
than PLC payments if PLC turns out to be better
Note: PLC also requires buying SCO too: more money up
front and more paperwork
Wheat/Oats: PLC seems better: about same as ARC if
average to high prices, much better than ARC if low prices
• Reduce crop insurance coverage level and rely more on
SCO to increase payments and reduce insurance costs?
Can mix ARC and PLC across crops if you want
ARC PLC Summary
• ARC: revenue floor
• Pays if county average yield and national MYA
prices below your county's guarantee
• Need base acres and payment yields
• PLC: price floor
• Pays if national MYA price falls below Reference
Prices: $3.70 corn, $8.40 soybeans, $5.50 wheat
• Need base acres and payment yields
Marketing Assistance Loans (MAL) &
Loan Deficiency Payments (LDP)
• MAL: loans to help farmers manage cash flow
(pay off operating loans), so can wait to sell grain
when prices are higher
• LDP: Payments that give farmers a price floor
equal to the Loan Rate
• Picks up price support for prices below the Loan
Rate, where counter cyclical payments stop
(CCP eliminated now)
• MAL-LDP programs meant to work together
• Not tied to Base Ares or Program Yields
Marketing Assistance Loans
• Farmers receive a marketing assistance loan
(MAL) from the Commodity Credit Corporation
(CCC), using their harvested grain as collateral
• Your harvested grain, no matter acres grown on
• Receive $/bu in loan equal to the Loan Rate
• Corn $1.95, Soybeans $5.00, Wheat $2.94
• Payback the loan with cash + interest or deliver
the grain to the CCC
• Payback with cash if Crop Price > Loan Rate
• Payback with grain if Crop Price < Loan Rate
• Delivery never really occurs, payback at the Marketing
Loan Repayment Rate, less than the Loan Rate
MAL Payback
• Farmer picks a day to “sell” and payoff loan
• Actual physical sale may occur later, but not earlier
• Each day, there is a Posted County Price (PCP) for
each commodity, the FSA official estimate of the
local price
• If PCP > Loan Rate, farmer pays back MAL in full,
plus small interest payment
• If PCP < Loan Rate, farmer pays back MAL at
Marketing Loan Repayment Rate ≈ PCP
• Loan Deficiency Payment (LDP) = Loan Rate – PCP
• Simplification: Don’t take loan and pay it back, but
receive LDP = Loan Rate – PCP, if PCP < Loan Rate
Marketing Assistance Loans (MAL) &
Loan Deficiency Payments (LDP)
• Main idea: Program works to give farmers a price
floor equal to the Loan Rate
• Reality is that loan rates are so low for corn
soybeans and wheat that no one expects LDPs,
just use as a cheap loan program
• Note: Based on local prices and actual farmer
harvested production
• Does not use National MYA prices, Base Acres
or Program Yields
Think Break #16
• Suppose planted and harvested 5,000 bu of soybeans
•
•
•
•
•
•
•
and enroll all 5,000 bu for a Marketing Assistance Loan
Soybeans has a $5.00/bu loan rate, so how much will
your MAL be?
Suppose you pay back the MAL on Feb 1st when the
posted county price for soybean is $6.00/bu,
What is your Loan Deficiency Payment?
How much will you pay back?
Suppose you pay back the MAL on Feb 1st when the
posted county price for soybean is $4.50/bu,
How much will you pay back?
What is your Loan Deficiency Payment?
Summary of
Loan Deficiency Payments (LDP)
• LDP ($/harvested bushel)
• LDP = Loan Rate – PCP, if PCP < Loan Rate
• Depends on local Posted County Price when you
“sell” the crop (may not be price actually receive
when physical sale occurs)
• Depends on how many bushels harvested, not
acres harvested
• Gives farmers the Loan Rate as minimum price
on all bushels enrolled
• Corn $1.95, Soybeans $5.00, Wheat $2.94
Marketing Assistance Loans
• Many farmers still participate in the program,
even though they do not expect to receive a LDP
• About 6% total US production for corn
• Use the loans to manage cash flow, because they
charge low interest rates
• Store grain for sale later, use the marketing
assistance loan to pay operating loans due late
fall/early winter
2009 Marketing Assistance Loans Made ($/ac)
Dairy Margin Protection Program
• 2014 Farm Bill Created the Dairy Producer
Margin Protection Program (MPP)
• Voluntary insurance program
• Protects dairy producers from lower mailbox
price, increasing feed costs, or both
• Pays indemnities when difference between
• USDA’s average national All-Milk price and a
program-defined fixed feed ration valued at
U.S. average feed prices falls below producer
chosen insured IOFC (income over feed
costs)
Why Focus on Dairy Margins?
Average
1980-89 8.03
1990-99 8.32
2000-09 8.60
2010+
8.22
Standard Coefficient
Deviation of Variation
0.96
0.12
1.51
0.18
2.47
0.29
2.75
0.33
Estimated MPP Bi-Month IOFC's: 1980-Present ($/cwt)
14.25
12.50
10.75
9.00
7.25
5.50
3.75
2.00
July 1, 2016
What Have Been Historical MPP Margins?
$/cwt
14.00
2014 IOFC
Forecast Margin
Historical
IOFC Margins
12.00
10.00
8.00
6.00
4.00
2.00
-
Margin Protection Available
from $4.00 - $8.00/cwt
Dairy Margin Protection Program
• Replace MILC with Dairy Margin Protection Program
• Margin insurance program: producers choose a milk
margin, get $4/cwt margin for free, buy higher coverage
• Pays when Actual Dairy Production Margin falls below
selected Coverage Level Threshold
• Actual Dairy Production Margin = All-Milk Price minus
Average Feed Cost (cost index)
• Feed Cost = 1.0728 x Corn Price + 0.00735 x Soybean Meal Price
+ 0.0137 x Alfalfa Price
• Payments = 1/6 x Actual Dairy Production History x
Percentage of Coverage x (Coverage Level Threshold –
Actual Dairy Production Margin)
Dairy Margin Protection Program
• Coverage Level Threshold (Margin Guarantee)
• $4.00/cwt to $8.00/cwt in 50¢ increments
• Percentage of Coverage (Payment Rate)
• 25% to 90% in 5% increments
• Payment rate for each $ Actual Margin < Guarantee
• Voluntary program with annual coverage decisions
• Uses pre-set 2 month periods (JF, MA, MJ, JA, SO, ND)
• Farmer gets $4/cwt margin for free, pay for higher margin,
with higher premium for production over 4 million pounds
• Can’t have Dairy Margin Protection and LGM Dairy Policy
Hypothetical Example
• Produce 3 million pounds/year
• Chose $4.00/cwt margin (free)
• Chose 90% Coverage Percentage
• Suppose Actual Margin is $3.50 for Jan-Feb of 2015
• Low milk prices relative to feed costs
• $4.00 < $3.50 = so trigger a payment of $0.50/cwt
• Payments = 1/6 x Actual Dairy Production History x
Percentage of Coverage x (Coverage Level Threshold –
Actual Dairy Production Margin)
• Payment = 1/6 x 30,000 cwt x 90% x $0.50 = $2,250
Premium Costs ($/cwt) for Dairy Margin Protection
Margin ($/cwt)
$4.00
$4.50
$5.00
$5.50
$6.00
$6.50
$7.00
$7.50
$8.00
First 4 million
pounds
0.000 Free
Above 4 million
pounds
0.000 Free
0.010
0.020
0.025
0.040
0.055
0.090
0.217
0.300
0.475
0.040
0.100
0.155
0.290
0.830
1.060
1.360
Hypothetical Premium Example
• Produce 30,000 cwt/year
• Chose 90% Coverage
Percentage (max)
• Annual Premium Cost =
90% x 30,000 x Rate
• Note: calendar year 2014
& 2015, Premiums for 1st
4 million lbs are 25%
lower, except for the
$8/cwt margin
• Note: sign-up is for the
whole year, not every 2
month period
Margin
$4.00
$4.50
$5.00
$5.50
$6.00
$6.50
$7.00
$7.50
$8.00
Rate
Cost
0.000
$0
0.010
$270
0.025
$675
0.040 $1,080
0.055 $1,485
0.090 $2,430
0.217 $5,859
0.300 $8,100
0.475 $12,825
‘14/’15
$203
$506
$810
$1,114
$1,823
$4,394
$6,075
Dairy MPP Summary
• Farmers will have to choose during annual sign-up period
1. No program
2. LGM-Dairy
3. Dairy Margin Protection Program
• What margin and coverage percentage to use?