Vermont dairy farmers will once again have an opportunity to purchase federal insurance which protects the gross margin between low milk and high feed prices through the USDA’s Livestock Gross Margin for dairy cattle program. UVM Extension’s agricultural economist, Bob Parsons, said that Vermont dairy farmers took full advantage of the program during prior sales periods, insuring over 6.8 million pounds of milk. With feed prices at record highs, this insurance can help pay the bills and cover living expenses, says Parsons.
Due to higher than expected nationwide interest last fall, all the remaining funds for the program were committed. However, an additional $2.5 million has been made available nationally by the USDA.
The sales period will open this Friday, August 31, and it is expected that the demand will quickly exceed the funds. Farmers interested in purchasing Livestock Gross Margin insurance for dairy cattle should contact a crop insurance agent immediately. For more information, call UVM Extension at 802-349-2966.