OUR MISSION: "TO EDUCATE, PROMOTE AND REPRESENT DAIRY PRODUCERS AND FOSTER AN ENVIRONMENT FOR GROWTH OF THE KENTUCKY DAIRY INDUSTRY."
We are dairy farmers, multiple allied industries and professional advisory supporters working together to sustain and grow Kentucky's dairy industry. Dairy farmers work hard every day to provide fresh, wholesome, quality milk and dairy products to consumers. We love our land, the animals in our care and way of life on the farm. Dairy cows are economic generators. The average dairy cow generates over $13,700 in economic ripple effect each year.
The KDDC Goals are:
1. To increase producer profitability 2. To improve dairy farmer's competitiveness
3. To enhance dairy farm families' quality of life 4. To assist in the viability of KY's dairy industry
To learn more about the KDDC
Email: kddc@kydairy.org or
call 859-516-1129.
1. To increase producer profitability 2. To improve dairy farmer's competitiveness
3. To enhance dairy farm families' quality of life 4. To assist in the viability of KY's dairy industry
To learn more about the KDDC
Email: kddc@kydairy.org or
call 859-516-1129.
Milk Matters Newsletter May/june 2019
KDDC 2019 Incentive Program
Kentucky Dairy Development Council is offering a one-time incentive program opportunity for Kentucky dairy producers to participate in and capture the benefits from the new Dairy Margin Coverage (DMC) program administered through Farm Service Agency (FSA).
Analyzing the Dairy Margin Coverage Program under the 2018 Farm Bill, the KDDC board members voted to issue a program to help producers utilize the new DMC program at the June 6, 2019 KDDC Board meeting. It was a unanimous decision for the board to help producers with the cost of utilizing this program. Also, it was approved by the Kentucky Agriculture Development Board on June 21st .
The current 2019 DMC program will be retroactive to January 2019 with months January through April already qualifying for payments for producers. Producers locking in coverage levels now until 2023 can also receive a discount of 25% on DMC premium costs. Producers have until September 20,2019 to sign up. Producers also have until this date to make any changes to coverage levels.
KDDC’s DMC Incentive Program will pay one- half of the insurance premium cost up to $1,000.00 per farm. Below are specifics of the program:
Kentucky Dairy Development Council is offering a one-time incentive program opportunity for Kentucky dairy producers to participate in and capture the benefits from the new Dairy Margin Coverage (DMC) program administered through Farm Service Agency (FSA).
Analyzing the Dairy Margin Coverage Program under the 2018 Farm Bill, the KDDC board members voted to issue a program to help producers utilize the new DMC program at the June 6, 2019 KDDC Board meeting. It was a unanimous decision for the board to help producers with the cost of utilizing this program. Also, it was approved by the Kentucky Agriculture Development Board on June 21st .
The current 2019 DMC program will be retroactive to January 2019 with months January through April already qualifying for payments for producers. Producers locking in coverage levels now until 2023 can also receive a discount of 25% on DMC premium costs. Producers have until September 20,2019 to sign up. Producers also have until this date to make any changes to coverage levels.
KDDC’s DMC Incentive Program will pay one- half of the insurance premium cost up to $1,000.00 per farm. Below are specifics of the program:
- This incentive program is provided through KDDC only using KDDC funds
- Producers must sign up at the highest coverage level at $9.50
- Producers must sign up for the 5-year period, locking in coverage level at $9.50 through 2023
- Producers need to submit verification before KDDC can issue a payment
- Producers are required to submit a copy of the FSA signup Form CCC-801 and copy of payment receipt for verification
- These can be submitted to your regional dairy consultant
- Please sign below and fill out the information so payments can be made in a timely manner after the September 20, 2019 deadline.
- Any questions contact your KDDC Consultant: Dave Roberts, 859-516-1409; Beth Cox, 859-516-1619; Meredith Scales, 859-516-1966 and Jennifer Hickerson, 859-516-2458
USDA Announces Repayment Options for Producers with Coverage in Previous Margin Protection Program for Dairy
USDA’s Farm Service Agency (FSA) announced that dairy producers who had coverage under the Margin Protection Program for Dairy (MPP-Dairy), which provided payments to producers when the price of milk fell below the feed costs to produce it, are eligible to receive a repayment for part of the premiums paid into the program.
To be eligible for this repayment, which was authorized by the 2018 Farm Bill, a dairy operation must have participated in the MPP-Dairy during any calendar year from 2014 through 2017, have the repayment calculated and verified by FSA and elect one of two options by September 20, 2019. Operations whose established production history has been transferred to an heir or new owner also are eligible.
An operation’s repayment amount is calculated for each applicable calendar year in which that dairy participated in MPP-Dairy, from 2014 through 2017. The repayment amount is equal to the difference between the total amount of premiums paid by the dairy operation for each applicable calendar year of coverage and the total amount of payments made to the MPP-Dairy participating dairy operation for that applicable calendar year.
An operation either can elect to receive 50 percent of the repayment amount as a cash refund or take 75 percent of the amount as a credit that can be used toward premiums for the new Dairy Margin Coverage (DMC) Program. Signup for DMC begins June 17 and also ends September 20. Like MPP-Dairy, DMC is a voluntary risk management program that helps dairy producers deal with shifting milk prices and feed costs and replaces MPP-Dairy.
Both MPP-Dairy reimbursement options will be subject to a 6.2 percent sequestration rate.
Eligible dairy producers soon will receive a letter from FSA, outlining their repayment options.
More Information
For dairy operations that choose the premium credit option, a new DMC decision support tool allows producers to consider different risk management strategies. The tool helps them evaluate various scenarios, using different coverage levels under the new DMC program.
On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation. FSA is committed to implementing these changes as quickly and effectively as possible, and today’s updates related to MPP-Dairy and DMC are part of meeting that goal.
For premium repayment and DMC information, visit the DMC webpage or contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.
Feed Cost Margin Triggers First 2019 Dairy Safety Net Payment
The U.S. Department of Agriculture’s Farm Service Agency (FSA) announced that the January 2019 income over feed cost margin was $7.99 per hundredweight, triggering the first payment for eligible dairy producers who purchase the appropriate level of coverage under the new but yet-to-be established Dairy Margin Coverage (DMC) program.
DMC, which replaces the Margin Protection Program for Dairy, is a voluntary risk management program for dairy producers that was authorized by the 2018 Farm Bill. DMC offers protection to dairy producers when the difference between the all milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.
Agriculture Secretary Sonny Perdue announced that sign up for DMC will open by mid-June of this year. At the time of sign up, producers who elect a DMC coverage level between $8.00 and $9.50 would be eligible for a payment for January 2019.
For example, a dairy operation with an established production history of 3 million pounds (30,000 cwt.) that elects the $9.50 coverage level for 50 percent of its production could potentially be eligible to receive $1,887.50 for January.
Sample calculation:
$9.50 - $7.99 margin = $1.51 difference
$1.51 times 50 percent of production times 2,500 cwt. (30,000 cwt./12) = $1,887.50
The calculated annual premium for coverage at $9.50 on 50 percent of a 3-million-pound production history for this example would be $2,250.
Sample calculation:
3,000,000 times 50 percent = 1,500,000/100 = 15,000 cwt. times 0.150 premium fee = $2,250
Operations making a one-time election to participate in DMC through 2023 are eligible to receive a 25 percent discount on their premium for the existing margin coverage rates.
USDA launches Dairy Margin Coverage decision making tool
www.dairyherd.com/article/usda-launches-dairy-margin-coverage-decision-making-tool?
USDA’s Farm Service Agency (FSA) announced that dairy producers who had coverage under the Margin Protection Program for Dairy (MPP-Dairy), which provided payments to producers when the price of milk fell below the feed costs to produce it, are eligible to receive a repayment for part of the premiums paid into the program.
To be eligible for this repayment, which was authorized by the 2018 Farm Bill, a dairy operation must have participated in the MPP-Dairy during any calendar year from 2014 through 2017, have the repayment calculated and verified by FSA and elect one of two options by September 20, 2019. Operations whose established production history has been transferred to an heir or new owner also are eligible.
An operation’s repayment amount is calculated for each applicable calendar year in which that dairy participated in MPP-Dairy, from 2014 through 2017. The repayment amount is equal to the difference between the total amount of premiums paid by the dairy operation for each applicable calendar year of coverage and the total amount of payments made to the MPP-Dairy participating dairy operation for that applicable calendar year.
An operation either can elect to receive 50 percent of the repayment amount as a cash refund or take 75 percent of the amount as a credit that can be used toward premiums for the new Dairy Margin Coverage (DMC) Program. Signup for DMC begins June 17 and also ends September 20. Like MPP-Dairy, DMC is a voluntary risk management program that helps dairy producers deal with shifting milk prices and feed costs and replaces MPP-Dairy.
Both MPP-Dairy reimbursement options will be subject to a 6.2 percent sequestration rate.
Eligible dairy producers soon will receive a letter from FSA, outlining their repayment options.
More Information
For dairy operations that choose the premium credit option, a new DMC decision support tool allows producers to consider different risk management strategies. The tool helps them evaluate various scenarios, using different coverage levels under the new DMC program.
On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation. FSA is committed to implementing these changes as quickly and effectively as possible, and today’s updates related to MPP-Dairy and DMC are part of meeting that goal.
For premium repayment and DMC information, visit the DMC webpage or contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.
Feed Cost Margin Triggers First 2019 Dairy Safety Net Payment
The U.S. Department of Agriculture’s Farm Service Agency (FSA) announced that the January 2019 income over feed cost margin was $7.99 per hundredweight, triggering the first payment for eligible dairy producers who purchase the appropriate level of coverage under the new but yet-to-be established Dairy Margin Coverage (DMC) program.
DMC, which replaces the Margin Protection Program for Dairy, is a voluntary risk management program for dairy producers that was authorized by the 2018 Farm Bill. DMC offers protection to dairy producers when the difference between the all milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.
Agriculture Secretary Sonny Perdue announced that sign up for DMC will open by mid-June of this year. At the time of sign up, producers who elect a DMC coverage level between $8.00 and $9.50 would be eligible for a payment for January 2019.
For example, a dairy operation with an established production history of 3 million pounds (30,000 cwt.) that elects the $9.50 coverage level for 50 percent of its production could potentially be eligible to receive $1,887.50 for January.
Sample calculation:
$9.50 - $7.99 margin = $1.51 difference
$1.51 times 50 percent of production times 2,500 cwt. (30,000 cwt./12) = $1,887.50
The calculated annual premium for coverage at $9.50 on 50 percent of a 3-million-pound production history for this example would be $2,250.
Sample calculation:
3,000,000 times 50 percent = 1,500,000/100 = 15,000 cwt. times 0.150 premium fee = $2,250
Operations making a one-time election to participate in DMC through 2023 are eligible to receive a 25 percent discount on their premium for the existing margin coverage rates.
USDA launches Dairy Margin Coverage decision making tool
www.dairyherd.com/article/usda-launches-dairy-margin-coverage-decision-making-tool?
Calendar of Events:
JULY
July 19 KDDC Board Meeting, Nelson Co. Extension Office 10:00 AM EDT
July 22 Prairie Farms Ice Cream Social, Adair Co. Extension office 7:00pm CST.
July 26-27 Kentucky Junior Livestock Expo, L.D. Brown Ag Center, Bowling Green, KY
August
Aug.14 KY State Fair Youth Pizza Party 7:00 pm
Aug 15-18 KY State Fair Dairy Shows, daily
Aug 16 Dairy Youth Cheese Auction (see info below)
Aug 22 Kentucky Farm Bureau Ham Breakfast 7:00 am
Aug 27-29 Kentucky Milk Conference, Lake Barkley State Park
September
Sept 6 CPC Field Day, Fountain Run KY
Sept 28 Eastern KY University Agriculture Day, Football game 6:00pm
Cheese Auction - WE NEED YOUR HELP! Sponsorship Opportunity
To: Kentucky State Fair Junior Dairy Show Supporters
From: Glenn Sageser, Representative for Kentucky Purebred Dairy Cattle Association
Last Year, 2018, I was fortunate to be able to help establish a Cheese Auction at the Kentucky State Fair which benefited over 60 of our Junior Dairy kids (FFA & 4-H). This included the Junior Dairy Show Grand Champions and the First Place dairy cows of the Junior Show in each of the seven (7) dairy breeds. These Juniors have indicated that most of them are putting their prize money in savings accounts for college. A total of $7,500 was distributed to these young people thanks to the generous sponsorships of many of you.
At this time, I say “Thank You” to those of you who contributed to the 2018 Cheese Auction as well as to the Kentucky State Fair Board for allowing us to tackle this endeavor and for their support. It is not easy to start up a program such as this and special thanks go to Eunice Schlappi for procurement of the many cheeses that were auctioned and to the cheese processors for their generous contributions.
Thank you’s have been shared and now it is time to jump in and start supporting these Dairy Kids in 2019. We have set a huge goal for 2019, but if we work together it is attainable. Our goal for this year is to DOUBLE last year’s sponsorships. Yes, we are reaching for $15,000 this year. We helped these Juniors last year, but we need to help more. They are the future of Kentucky’s Dairy industry and this is your opportunity to contribute to the future of these tremendous young people – to make a difference in their lives. Don’t let it pass you by! Please become a proud sponsor. No contribution is too small.
When you settle on a dollar amount that you wish to contribute, please contact:
Glenn Sageser- cell (502)321-8670 or email Gsageser0427@gmail.com
Eunice Schlappi – cell (502)545-0809, office (502)782-4122 or email Eunice.Schlappi@ky.gov
Dr. George Heersche – cell (859)536-2054
The SECOND ANNUAL KY STATE FAIR JUNIOR DAIRY CHEESE AUCTION
Date: Friday, August 16, 2019
Time: 6:00(ish) after Supreme Champion Show
Place: West Wing Show Ring
To: Kentucky State Fair Junior Dairy Show Supporters
From: Glenn Sageser, Representative for Kentucky Purebred Dairy Cattle Association
Last Year, 2018, I was fortunate to be able to help establish a Cheese Auction at the Kentucky State Fair which benefited over 60 of our Junior Dairy kids (FFA & 4-H). This included the Junior Dairy Show Grand Champions and the First Place dairy cows of the Junior Show in each of the seven (7) dairy breeds. These Juniors have indicated that most of them are putting their prize money in savings accounts for college. A total of $7,500 was distributed to these young people thanks to the generous sponsorships of many of you.
At this time, I say “Thank You” to those of you who contributed to the 2018 Cheese Auction as well as to the Kentucky State Fair Board for allowing us to tackle this endeavor and for their support. It is not easy to start up a program such as this and special thanks go to Eunice Schlappi for procurement of the many cheeses that were auctioned and to the cheese processors for their generous contributions.
Thank you’s have been shared and now it is time to jump in and start supporting these Dairy Kids in 2019. We have set a huge goal for 2019, but if we work together it is attainable. Our goal for this year is to DOUBLE last year’s sponsorships. Yes, we are reaching for $15,000 this year. We helped these Juniors last year, but we need to help more. They are the future of Kentucky’s Dairy industry and this is your opportunity to contribute to the future of these tremendous young people – to make a difference in their lives. Don’t let it pass you by! Please become a proud sponsor. No contribution is too small.
When you settle on a dollar amount that you wish to contribute, please contact:
Glenn Sageser- cell (502)321-8670 or email Gsageser0427@gmail.com
Eunice Schlappi – cell (502)545-0809, office (502)782-4122 or email Eunice.Schlappi@ky.gov
Dr. George Heersche – cell (859)536-2054
The SECOND ANNUAL KY STATE FAIR JUNIOR DAIRY CHEESE AUCTION
Date: Friday, August 16, 2019
Time: 6:00(ish) after Supreme Champion Show
Place: West Wing Show Ring
