USDA’s Risk Management Agency is taking action to reduce the impact on milk producers of recent market disruptions that have caused some producers to dump their product.

In an announcement Friday, RMA said it would allow dumped milk to be counted as milk marketings for the Dairy Revenue Production (DRP) or actual marketings for the Livestock Gross Margin for Dairy (LGM-Dairy) programs.

“Dairy Revenue Protection is a vital risk management tool for our dairy farmers, especially during times like these, and USDA wants to ensure producers continue to get the coverage they purchased,” RMA Administrator Martin Barbre said.

“COVID-19 shutdowns have caused disruption in the milk market, and dairy producers are dumping milk as a result,” RMA said. “For the 2020 calendar year, RMA is allowing Approved Insurance Providers (AIPs) 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.”

“RMA is making some further adjustments to assist the crop insurance industry and America’s farmers and ranchers,” Barbre said. "We will continue to make adjustments as needed to ensure that the Federal crop insurance program continues to serve the risk management needs of our nation’s producers during this unprecedented time.”

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Specifically, RMA is:

  • Allowing phone and electronic transactions for 2021 crop year sales and reporting dates, including options and endorsements;
  • Extending the deadline for some perennial crop Pre-Acceptance Inspection Reports (PAIRs);
  • Waiving the 2021 crop year inspection requirements for the Nursery and Nursery Value Select (NVS) programs in certain cases.  

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