Member Communication
Milk Loss and On-Farm Stored Commodity Loss Program Applications Due Friday
NMPF urges eligible dairy farmers to apply for assistance through the Milk Loss Program (MLP) and the On-Farm Stored Commodity Loss Program (OFSCLP) to help recover losses caused by qualifying natural disaster events in 2023 and 2024. Producers must submit applications through their local Farm Service Agency (FSA) office by Friday, Jan. 23.
The program provides payments to eligible dairy farms for milk dumped or removed from the commercial market without compensation due to qualifying weather events that disrupted milk delivery or storage during the 2023 and 2024 calendar years. Producers may also qualify for assistance through the OFSCLP for losses of eligible harvested commodities, including alfalfa hay, corn, soybeans and barley.
NMPF and its members worked with Congress to allocate $1.65 million for MLP and $5 million for OFSCLP through the American Relief Act, advocating for assistance that reflects the significant losses dairy producers experienced due to flooding and other weather-related disasters in 2023 and 2024. NMPF also worked with USDA to ensure the programs were implemented effectively to deliver assistance to affected dairy farmers.
MILK LOSS PROGRAM
Dairy operations that dumped or removed milk, without compensation, from the commercial milk market due to a qualifying weather event that affected the delivery or storage of milk (e.g., power outages, impassable roads, infrastructure losses, etc.) during calendar years 2023 and 2024 may be eligible for assistance.
MLP payments are calculated by multiplying the base-period average daily milk production per cow by the number of milking cows in the claim period and the number of days milk was dumped, then dividing that total by 100 and multiplying by the applicable pay price per hundredweight. For payment calculations, the milk loss base period is defined as the first full month of milk production immediately preceding the dumping or removal event. Eligible applicants will receive payments at 75% of the calculated amount.
Click below to visit FSA’s MLP webpage for more information.
ON-FARM STORED COMMODITY LOSS PROGRAM
Eligible commodities must have been harvested and stored in structures that, under normal conditions, would have preserved their quality for an extended period. Losses must be the direct result of a qualifying natural disaster event or related condition that rendered the commodity unusable and unsuitable for sale. Qualifying disaster events include wildfire, hurricane, flood, derecho, excessive heat, tornado, winter storm, freeze, smoke exposure and qualifying drought.
FSA has established payment rates for each eligible commodity and year. Approved applicants will receive payments equal to 75% of the calculated loss. OFSCLP payments are calculated by multiplying the producer’s share of the quantity lost in storage by the applicable commodity payment rate, with any compensation received, such as insurance, deducted from the final payment amount.
