There’s a new type of insurance policy for dairy farmers in the country. «This program will help a lot toward its stability,» said Keith Van Althuis, of Van Althuis Dairy in Sherburne.
While dairy farming in New York is the largest portion of the state’s agriculture, it’s also one of the hardest to predict with milk prices constantly rising and falling.
The new program is called Dairy Risk Management Program or Dairy Margin Protection.
It’s a new type of insurance for when the price of milk fluctuates.
The plan also takes into account rising feed prices which hasn’t happened in previous coverage plans.
«There are some signs that maybe a drop in milk prices are coming. Hopefully it will insure us that we don’t lose our life investment,» said Van Althuis.
The program passed through Congress in the Farm Bill earlier this year and signups began last week.
«Dairy and business because it’s a perishable product and the way the pricing is done, you need some type of insurance,» said Van Althuis.
Farmers have to pay in to access it, but they can choose their level of financial security or chose not to join at all.
«We’re really pleased that this program has much more flexibility than the former MILC, the Milk Income Loss Program,» said Bradd Vickers, president of the Chenango County Farm Bureau.
Online, the government has set up a site that forecasts milk prices, so farmers can decide how much they want to invest in coverage.
Van Althuis, a third generation farmer, says he will join in the coverage, but still has to go through the figures.
«I’m hoping we don’t see any bad years coming up,» he said.
Farmers can sign up right now for the program. Enrollment for the next year is open until Nov. 28.
Source: WBNG
