Margin Protection Program for

Dairy Premium Repayment

Farm Service Agency

Overview

The 2018 Farm Bill provides premium repayments for 

eligible dairy operations for which buy-up Margin 

Protection Program for Dairy (MPP-Dairy) coverage 

was purchased for the years 2014-2017. The 

repayment is equal to the difference between the total 

amount of premiums paid by the participating dairy 

operation and the total amount of MPP-Dairy 

payments received by the operation for each applicable 

calendar year.

Eligible Dairy Operations

To be eligible to receive an MPP-Dairy premium 

repayment, the dairy operation must have:

• Participated in the MPP-Dairy for any of the

 calendar years 2014 through 2017.

• Paid a premium in any year 2014 through 2017 that

 exceeds a payment issued for that year.

• Applied for repayment by the end of the 2019

 coverage election period under the Dairy Margin

 Coverage (DMC) program.

1

FACT SHEET

May 2019

2018 FARM BILL

Determining Repayment

To determine the premium repayment for each year, 

the premium paid by the dairy operation for that year 

are subtracted by the indemnity payment received for 

that year. If the difference is a negative number, the net 

will be recorded as $0 for that calendar year. Once 

each calendar year is calculated, the net totals are 

summarized to a total calculated repayment.

See example in the following table:

Premium Repayment Option

Eligible dairy operations must elect either of the 

following premium repayment options: 

• 75 percent of the repayment as a credit to be used by

 the dairy operation for future DMC premiums, or 

• 50 percent of the repayment as a direct cash

 repayment.

Note

Repayment eligibility may also apply for deceased or 

retired dairy operators or operations that are now 

dissolved, as 50 percent direct cash.

Repayments either cash or credit will be sequestered 

by 6.2 percent.

Total Calculated Repayment: $9,000

Premium

Paid

Payments

Received

Net Repayment

Per Year:

$3,000

$0

$3,000

2014

$5,000

$1,000

$4,000

2015

$4,000

$80,000

$0

2016

$2,000

$0

$2,000

2017
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PREMIUM REPAYMENT - MAY 2019

USDA is an equal opportunity provider, employer and lender.

Repayment Application

The application period to apply for premium 

repayment will be May 8 through September 20, 

2019. This is a one-time application period and 

selections are final. 

Eligible dairy operations must visit their county FSA 

office to sign up for premium repayment. Dairy 

operations will receive letters that provide premium 

paid, payments received and the cash or credit amount. 

The producer will make a one-time decision of either a 

direct cash repayment or a credit for future DMC 

premiums. The dairy operation will acknowledge and 

sign the (CCC-785) Repayment Election Application.

If the dairy operation disputes the repayment 

information provided by the county office, it is the 

responsibility of the producer to provide 

documentation to substantiate the premium repayment 

request no later than September 20, 2019. 

Succession-in Interest

Transfer Option

For dairy operations where a succession in interest has 

occurred, the predecessor has the option to transfer the 

repayment to the successor. The predecessor dairy 

operation would designate the transfer of repayment 

on the (CCC-785) Repayment Election Application. 

Estates, Dissolved, Retired

Dairy Operations

Active estates and dissolved or retired dairy operations 

are eligible to apply for the premium repayment for the 

applicable years in which they participated. The entity 

of the dissolved or retired dairy operation requesting 

MPP-Dairy premium repayment must still have:

• The active tax identification number

• A valid bank account

Dairy Margin Coverage Decision Tool 

Dairy operations are encouraged to study the available 

risk management options under the DMC. The DMC 

Decision Tool has been developed to assist dairy 

producers with program participation forecasting and 

decision making. The decision tool allows a producer 

to enter their production history and repayment 

calculation options to assess their dairy margin risk 

management. The DMC Decision Tool is located at 

fsa.usda.gov/dmc-tool. 

For More Information

Contact your FSA County Office for more information 

on the MPP-Dairy Premium Repayment or visit 

fsa.usda.gov.