USDA has indicated that it will begin sending funds to dairy handlers through its Pandemic Market Volatility Assistance Program (PMVAP) in the near term. Through this program, USDA will provide more than $350 million in pandemic assistance payments to dairy farmers who received a lower value due to market abnormalities caused by the pandemic and ensuing federal policies.
If your handler participated in the pool in the period of July-December 2020, they are eligible to receive these payments, which will then be distributed to their dairy farmer members. Upon receiving USDA funds, handlers have 30 days to disburse the monies. USDA anticipates that eligible dairy farmers will receive PMVAP payments during late January and February 2022.
Further information
Eligibility requirements:
A producer’s AGI must be less than $900,000 on average for tax years 2016, 2017 and 2018 or at least 75 percent of your AGI must come from farming, ranching or forestry-related activities. If you were eligible for CFAP-2, you would be eligible for this program. Please note that producers MUST certify their AGI to be eligible for the payment.
Your handler or cooperative must have participated in the Federal Milk Marketing Orders between July and December 2020. If your handler is eligible, they have been notified by USDA.
Payment rates are determined by:
Volume of milk regulated by the federal order program where you sell your milk
Determination of monthly rate per order: · Difference between old and current Class I skim value · Class I skim utilization rate · Reduced to 80 percent · Paid on only 5 million pounds annual production per producer
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