PRESS RELEASE: Trenton – The Organic Dairy Marketing Assistance Program (ODMAP) was created to assist certified organic dairy producers facing a unique set of challenges in recent years, including higher costs attributed to the pandemic and drought conditions across the country. USDA will invest $104 million in financial assistance to certified organic dairy producers.
How ODMAP Works
FSA is providing financial assistance for a producer’s projected marketing costs in 2023 based on 2022 costs. ODMAP provides a one-time cost-share payment, based on marketing costs, on pounds of organic milk marketed in the 2022 calendar year.
The financial assistance from ODMAP provides immediate support to certified organic dairy operations during 2023 keeping organic dairy operations sustainable until the markets return to more normal conditions.
ODMAP Fact Sheet
How to Apply
FSA is accepting applications from May 24, 2023 to July 26, 2023. To apply, producers should contact FSA at their local USDA Service Center. To complete the ODMAP application, producers and handlers must show documentation of their organic certification and eligible expenses and submit a completed application form. See the May 19, 2023 news release for details.
Dairy Margin Coverage Program
The 2018 Farm Bill authorized the new Dairy Margin Coverage (DMC) program, which is a voluntary risk management program for dairy producers. DMC replaces the Margin Protection Program for Dairy (MPP-Dairy).
DMC continues to offer protection to dairy producers when the difference between the all milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. The program provides:
- catastrophic coverage, at no cost to the producer, other than an annual $100 administrative fee that is waived in some cases; and
- various levels of buy-up coverage.
Signup information is available on the DMC webpage
Dairy Margin Protection Program
The Dairy Margin Protection Program replaces MILC and will be effective not later than September 1, 2014, through December 31, 2018. The margin protection program offers dairy producers: (1) catastrophic coverage, at no cost to the producer, other than an annual $100 administrative fee; and (2) various levels of buy-up coverage. Catastrophic coverage provides payments to participating producers when the national dairy production margin is less than $4.00 per hundredweight (cwt). The national dairy production margin is the difference between the all-milk price and average feed costs. Producers may purchase buy-up coverage that provides payments when margins are between $4.00 and $8.00 per cwt. To participate in buy-up coverage, a producer must pay a premium that varies with the level of protection the producer elects.
In addition, the 2014 Act creates the Dairy Product Donation Program. This program is triggered in times of low operating margins for dairy producers, and requires USDA to purchase dairy products for donation to food banks and other feeding programs.
Milk Income Loss Contract Program
The 2014 Act extends the Milk Income Loss Contract Program (MILC) from October 1, 2013, through the earlier of the date on which the Secretary certifies that the Dairy Margin Protection Program is operational or September 1, 2014. Dairy producers who were enrolled in 2013 do not need to re-apply. MILC payments are issued when the Boston Class I milk price falls below $16.94 per hundredweight (cwt), as adjusted by a dairy feed ration formula.
Dairy Indemnity Payment Program
The program provides payments to dairy producers when a public regulatory agency directs them to remove their raw milk from the commercial market because it has been contaminated by pesticides and other residues. For more information, see the Frequently Asked Questions (FAQs) below or contact your local service center.
Extension Service Dairy FAQs (.PDF, 35 KB)