Examining the Effectiveness of the Margin Protection Program
Many details of the Margin Protection Program (MPP) are yet to be determined, however the basic structure of the program is known. In order for producers to capitalize on the benefits offered by the MPP, one must understand the details behind how indemnities are calculated in relation to their own dairy operation and be cognizant that the MPP program does not hedge against any producers own specific risk. Understanding the inherent downfalls in the MPP margin payout structure will allow producers to accurately assess the effectiveness of the MPP for their specific dairy operation and its fit in their overall risk management strategy. Please contact us if you would like to learn more about our dairy research products, including the current report that analyzes the effectiveness of the Margin Protection Program. Please contact us if you would like to learn more about our dairy research products, including the current report that analyzes the impact of ongoing trade disputes between the U.S. and Mexico.