USDA addresses milk dumping, authorizes other flexibilities to help producers


USDA’s Risk Management Agency (RMA) is ensuring that milk producers are not inappropriately penalized if their milk must be dumped because of recent market disruptions caused by the coronavirus pandemic according to a USDA press release. In addition, RMA is extending inspection deadlines, waiving inspection requirements and authorizing more crop insurance transactions over the phone and electronically to help producers during the crisis.

Market disruptions are happening due to the “stay at home” orders which have shut down non-essential businesses.

RMA is allowing the following:

Allowing 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;

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.

“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 is making some further adjustments to assist the crop insurance industry and America’s farmers and ranchers,” RMA Administrator Martin 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.”

For the 2020 calendar year, RMA is allowing Approved Insurance Providers to count dumped milk towards the milk marketing for the DRP or actual marketing for the LMG-Dairy programs regardless of whether the milk was actually sold.