2019 Dairy Margin Coverage Program signup coming soon

first_imgShare Facebook Twitter Google + LinkedIn Pinterest By Dianne Shoemaker, Ohio State University Extension Field SpecialistThe Farm Service Agency plans to open the sign-up period on June 17 for the newly renovated Dairy Margin Coverage (DMC) Program, re-named and re-configured in the 2018 Farm Bill. The changes you will see in the DMC Program attempt to fix some of the problems that rendered the Dairy Margin Protection Program largely ineffective until initial adjustments were implemented early in 2018.Two of the biggest changes that will positively impact farms of all sizes include 1) adding 3 new margins ($8.50, $9.00 and $9.50) at reasonable premiums, and 2) allowing farms with base production of more than 5 million pounds to make a second margin election for pounds over the first 5 million.There are also opportunities to recover program participation net losses from 2014, 2015, 2016 or 2017. Repayment can be received either as cash (50% of the net loss), or by applying it to premiums for participation in the new program (75% of the net loss). What does this mean? If a farm purchased $6.50 margin coverage in 2016, paid a premium of $3,500 and received a total indemnity payment of $500, they had a $3,000 net loss. The farm can now choose to receive half the difference, or $1,500 as a cash payment. The other option is to receive $2,250, or 75% of the amount, as a credit toward premiums for Dairy Margin Coverage Program participation. If you participated in any or all of those years, you will receive notification from your Farm Services Agency office with your amounts and options.So why should you step up to the plate? Just like 2018, when sign-ups were re-opened for the updated program, sign-ups for 2019 will open well after January, but participation will be retroactive to Jan. 1. When the sign-up period opens on June 17, we will know exactly what the margins will be for January ($7.99), February ($8.22), March ($8.85), and April. Signups will end September 20, so you could wait and know what the actual margins are through at least July. As USDA announces new monthly margins, you can find them posted at https://www.fsa.usda.gov/programs-and-services/Dairy-MPP/indexFor farms with up to 5 million pounds of base production, indemnity payments for January through March more than cover the premiums at the highest ($9.50) margin.Example:Base milk: 5,000,000 pounds (about 200 cows)Farm elects to cover 95% of their base, 4,750,000 pounds, or 47,500 cwt.Coverage level selected: $9.50 margin costing 15¢ per cwtThe program assumes that production is equal across months, or 47,500/12 = 3,958 cwt per month.Because we know the January, February, and March margins, we can calculate the current indemnity payments. These payments are made on the difference between the purchased margin coverage level ($9.50 in this example) and the announced margin, times the monthly cwts covered:Jan $1.51 x 3,958 cwt = $5,977Feb $1.28 x 3,958 cwt = $5,066March $0.65 x 3,958 cwt = $2,573Total payments = $13,616Less6.2% Sequestration = $ 844Administration fee = $ 100Premium = $ 7,125Difference = $ 5,547 paid to the farmSince the signup is retroactive to January 1, we know that not only will the known indemnity payments cover all program costs; we also know there will be net positive dollars to help pay a few bills.How many total net dollars for 2019 is unclear and changing. Recently, projections indicated that there would be announced margins less than $9.50 well into the summer. If recent milk market rallies hold and show up in milk checks, then there could few or no further indemnity payments. We all hope that that will be the case. Second election for base pounds over 5 millionA major change that impacts farms with more than 200 cows, is the opportunity to make a margin selection for the first 5 million pounds of base milk, and a different margin selection for any base pounds over 5 million pounds. The Tier 2 premiums for the > 5 million pounds are substantially higher than premiums for the first 5 million pounds. To be allowed to make a second selection, the farm must purchase coverage at $8.50, $9.00, or $9.50 for the first 5 million base pounds (Tier 1 milk and premiums).Tier 2 premiums are the same as Tier 1 premiums for $4.00, $4.50, and $5.00 margins. The premium for the $5.50 Tier 2 margin costs more than three times as much as the corresponding Tier 1 premium, with premiums increasing exponentially until they reach $1.813 for the $8.00 margin. The higher coverage levels quickly become cost prohibitive and are unlikely to make sense for most farms.However, with the new 2-election option, farms with base production of more than five million pounds should seriously consider maximizing coverage in Tier 1 and electing the $4.00, $4.50, or $5.00 margin coverage on their Tier 2 base pounds for 2019. Long-term commitment = 25% off premiumsAnother option for farmers to consider as they sign up this year is the 25% premium discount option. There is a large string attached to the 25% discount, as you have to commit to your election for 5 years. Decision toolHow to make a decision? Particularly if you are considering the five-year commitment, use the decision tool developed by Mark Stephenson and crew at the University of Wisconsin. The new DMC Decision Tool, which incorporates the changes legislated in the 2018 Farm Bill is now up and running at https://dairymarkets.org. This is a very handy tool that allows farmers to enter their historic production (still starts with the highest of 2011, 2012, or 2013 production — verify your current production history with your FSA office) and explore the cost and potential returns of different coverage percentages and levels. It will lay out your costs for 2019 participation, expected payment, and also lay out the premium with the 25% discount and total 5-year cost if you want to consider that option.There is also a button to plug in your MPP Premium Repayment amount supplied to you by your FSA office. It will tell you how much you could receive as a cash payment and how much of your current selection’s premium would be covered if you chose that option. The decision tool’s milk and feed price data is updated nearly daily, so you may receive different “expected payment” results depending on what the markets are doing.OSU Extension and FSA offices will be working together and offering educational programs before and early in the sign-up period to review the changes and options for farmers. Look at the options for your farm.last_img read more

IRCTC hotels case: Tejashwi seeks time to appear before CBI

first_imgFormer Bihar deputy chief minister Tejashwi Yadav on Tuesday sought 15 days from the CBI to appear for questioning in a case related to alleged corruption in giving the contract for running two IRCTC hotels to a private firm in 2006, sources said.Mr. Yadav, who was summoned to appear on Tuesday, sent his counsel who submitted the request seeking time to appear before the investigation team, sources in the agency said. The contracts were given in 2006 when his father Lalu Prasad was the Union railway minister.The case pertains to allegations that Mr. Lalu Prasad, as railway minister, handed over the maintenance of two hotels run by the Indian Railway Catering and Tourism Corporation, a subsidiary of the Indian Railways, in Ranchi and Puri to Sujata Hotel, a company owned by Vinay and Vijay Kochhar, in return for a prime plot of three acres in Patna through a benami company.The FIR alleged that the RJD leader, as the railway minister, abused his official position for extending undue favours to the Mr. Kochhar and acquired a “high value premium land” through a benami firm Delight Marketing Company. As a quid pro quo, he “dishonestly and fraudulently” managed award of leasing of the two hotels.After the tender was awarded to Sujata Hotel, the ownership of Delight Marketing also changed hands from Sarla Gupta to Rabri Devi and Mr. Yadav between 2010 and 2014. By this time, Mr. Lalu Prasad had resigned as railway minister.The CBI has registered the case against Mr. Lalu Prasad, his wife Ms. Rabri Devi, a former Bihar chief minister, son Mr. Yadav, who was deputy CM until a few months ago, and Sarla Gupta, wife of Prem Chand Gupta, a former union minister.Others named as accused in the FIR include Vijay Kochhar, Vinay Kochhar, both directors of Sujata Hotels and owner of Chanakya Hotel, Delight Marketing Company, now known as Lara Projects, and then IRCTC managing director P K Goel.last_img read more

Back’s fine as Federer serves up warning to rivals

first_img2 ‘newbie’ drug pushers fall in Lucena sting Federer was struck down with back trouble last year when he lost to Alexander Zverev in the final of the Montreal Masters and subsequently withdrew from the Cincinnati Masters. But on the evidence of his form in the year’s opening Grand Slam in Melbourne, he looks back to his serving bestFEATURED STORIESSPORTSWATCH: Drones light up sky in final leg of SEA Games torch runSPORTSLillard, Anthony lead Blazers over ThunderSPORTSMalditas save PH from shutoutThe 36-year-old said the renewed freedom in his back was contributing to the improvement in his serving.“Just the back being fine again,” Federer said after beating Gasquet. Read Next Heat erase 5-point deficit in 34 seconds, stun Hornets FILE – Switzerland’s Roger Federer waves to the crowd as he leaves the court after losing to Belgium’s David Goffin during their men’s singles semi-final match on day seven of the ATP World Tour Finals tennis tournament at the O2 Arena in London on November 18, 2017.David Goffin won 2-6, 6-3, 6-4. / AFP PHOTO / Glyn KIRKRoger Federer says he is regaining the rhythm and consistency of his silky serve following his recovery from a back injury as he steps up the defense of his Australian Open title.The Swiss maestro moved into the last 16 with a commanding straight sets win over Frenchman Richard Gasquet on Saturday with his serving game a feature.ADVERTISEMENT Brace for potentially devastating typhoon approaching PH – NDRRMC Globe Business launches leading cloud-enabled and hardware-agnostic conferencing platform in PH View comments Typhoon Kammuri accelerates, gains strength en route to PH “The problem is, when you have back issues, when you’re scared or you don’t have the confidence in your body.“It robs you by of say 20 or 30 percent of your capabilities maybe on that particular shot only, but it’s enough to make you almost half the player that you normally are.“Sometimes it takes time. When it hurts, it hurts. It’s just not point-for-point mentality because it’s difficult. Finally when you’re free again, you find better zones, more consistency.”Federer said serving consistency was a big thing in top-level tennis of fine margins between players.“Can you serve like this for five hours? That’s the goal. When you’re carrying an injury, clearly it’s tougher,” he said.ADVERTISEMENT Slow and steady hope for near-extinct Bangladesh tortoises John Lloyd Cruz a dashing guest at Vhong Navarro’s wedding MOST READ “I think right now I’m fine again. Look, bad backs always come and go I think for all of us players.“You just have to deal with it as good as possible. You hope they don’t hit you at the wrong times, and that when it does hit you, you get over it very quickly.”Federer enters the second week of the Australian Open with a round of 16 encounter against erstwhile training partner, Hungary’s Marton Fucsovics. Don’t miss out on the latest news and information. NEXT BLOCK ASIA 2.0 introduces GURUS AWARDS to recognize and reward industry influencers Trending Articles PLAY LIST 00:50Trending Articles03:07PH billiards team upbeat about gold medal chances in SEA Games00:50Trending Articles01:29Police teams find crossbows, bows in HK university01:35Panelo suggests discounted SEA Games tickets for students02:49Robredo: True leaders perform well despite having ‘uninspiring’ boss02:42PH underwater hockey team aims to make waves in SEA Games01:44Philippines marks anniversary of massacre with calls for justice01:19Fire erupts in Barangay Tatalon in Quezon City LATEST STORIES Kammuri turning to super typhoon less likely but possible — Pagasalast_img read more

India to go in with best combination says Dhoni

first_imgWhen the cover was removed a few minutes before 8 am on Thursday, the pitch looked bone dry, even as dark clouds continued to hover over the M Chinnaswamy Stadium, the venue of the second and final Test between India and New Zealand, starting on Friday.The forecast of showers and thunder showers remains, but it should concern more the Kiwis rather than the Indians, who are 1-0 ahead in the series. Rain also affected the first Test in Hyderabad, but it failed to prevent India from winning by an innings.The stark difference in quality between the two teams was visible in Hyderabad where India took just four days to wrap up the big win. Spin was the dominant force in the first Test as off-spinner R Ashwin (12) and left-armer Pragyan Ojha (six) bagged 18 of the 20 New Zealand wickets.Despite being in a strong position, captain MS Dhoni ruled out experimentation just because India are in an advantageous position. “No, we are not experimenting; whatever is the best combination for this Test, we’ll feature it,” he said.New Zealand are, on the other hand, relying more on pace and are badly missing their wily left-armer Daniel Vettori, who was ruled out the Test series with a shoulder injury. Vettori is here with the team but he can only guide from outside.Their second most-experienced spinner is Jeetan Patel, who has bagged 44 wickets in 14 Tests.New Zealand have also brought Tarun Sai Nethula, a leg-spinner who was born in Kurnool, Andhra Pradesh, but it remains to be seen if he makes his Test debut in Bangalore.advertisementHere, it may be slightly different for Nethula as the final face of the pitch is yet to be known. Dhoni said that the pitch and the Bangalore weather may slightly assist the New Zealand pacers.last_img read more