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The University of Tennessee | Institute of Agriculture

Department of Agricultural and Resource Economics

Frequently Used Tools:




Dairy Margin Protection Program Calculator

The Dairy Margin Protection Program Calculator is an Excel-based tool that will help dairy producers estimate potential payments under the new Dairy Margin Protection Program established in the Agricultural Act of 2014. The Margin Protection Program (MPP) replaces the Milk Income Loss Contract (MILC) program in the Agricultural Act of 2014. The MILC program will be available until September 1, 2014 or when rules and regulations are written by USDA to administer the MPP—whichever comes first. Note that premiums for coverage levels from $4.50/cwt up to $7.50/cwt of milk will increase 25% in 2016 according to the 2014 Farm Bill.

The tool calculates premiums and anticipated payouts under the new Dairy Margin Protection Program. It can be used to determine what premiums and payouts would have been for previous years.

This tool does not compare between LGM-Dairy and the new Margin Protection Program. Rather, it is designed to help producers who wish to use MPP to estimate the cost and potential return to the program.

Disclaimer:  The information contained in this tool is intended to be used for informational purposes only. The premium this tool calculates may not be the exact premium owed by the producer. Users should evaluate the premium and potential payments carefully and check with Margin Protection Program providers to determine exact premiums and potential payments for their operation.  Premium calculations in this tool are preliminary based on current knowledge and subject to change once the Margin Protection Program rules and regulations are written by USDA.

 

Note on Security Settings

The file contains macros (buttons for printing and moving between worksheets). Security settings for Microsoft Office or Excel may give you warnings for when you open the file. This will especially be true if your security settings are set to high or very high. The following should correct the issue.

For Excel 2010

  • When you open the file a "Security Warning" Message may appear just above the spreadsheet.
  • The message will read "This file originated from an Internet location and might be unsafe."
  • Click on the "Enable Editing" Button beside the message.
  • A second message may then appear just above the spreadsheet which reads “Some active content has been disabled."
  • Click on the "Enable Content" Button beside the message.

For Excel 2007

  • When you open the file a "Security Warning" Message may appear just above the spreadsheet.
  • The message will read "Some active content has been disabled."
  • Click on the "Options" Button beside the message.
  • A Microsoft Office security window appears. Select "Enable the content" then "OK".

For Excel 2003
If your security settings are set to High or Very High a message will be displayed and you may need to change your security settings to enable the macros.

  • Open Excel
  • Select the "Tools" menu option
  • From the Tools menu select "Macro" and then select "Security"...
  • A window will be displayed which will include a tab labeled Security Level
  • Select "Medium" and then "OK"
  • Now open the Buy/Sell Margins Calculator file
  • When you open the file, a security warning window will appear
  • Select the "Enable Macros" button to continue opening the file

For additional information contact Jason Fewell