SAINT PAUL, Minn. — The Minnesota Milk Producers Association, the state’s most prominent dairy advocacy group, celebrated the passage of the Dairy Assistance, Investment and Relief Initiative 2.0 legislation. The proposal creates a public-private partnership by creating a state rebate for the premium incurred when a dairy farmer enrolls in the federal Dairy Margin Coverage program.
The new program—one of the Association’s priority issues—builds off the original DAIRI program, passed in 2019, including several refinements to encourage family dairy farms to utilize existing federal risk management programs and stabilize Minnesota’s dairy economy for long-term viability.
“Managing risk has become an essential part of dairying in the modern age,” said Minnesota Milk Executive Director Lucas Sjostrom. “Minnesota’s commitment to encouraging and supporting dairy farms to manage price risk will help future generations continue our farming legacies.”
The original DAIRI program drove more Minnesota farms to sign up for risk management. Minnesota dairy farms were nearly 15% more likely to enroll in the federal DMC program than nationwide enrollment statistics. This increase in participation meant enhanced indemnity payments when low prices triggered the DMC program to help cover costs.
The DAIRI 2.0 program creates an enhanced investment by the legislature that would benefit family dairy farms producing a maximum of 5,000,000 pounds of milk or a farm milking approximately 200 cows. Eligibility criteria for farmers electing to participate include a 5-year enrollment in the 2024 Dairy Margin Coverage program, investment of about $0.56 per hundred pounds of milk produced by the farm over the next five years and enrollment in the DAIRI 2.0 program.
“With this investment, Minnesota continues to demonstrate its place as a thriving home for dairy,” Sjostrom said. “We will continue working with our state’s leaders to ensure a strong foundation of stability for Minnesota’s dairy farm families.”
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About Minnesota Milk:
Minnesota Milk Producers Association is the Minnesota dairy industry’s leading grassroots organization. Its strength comes from members working together and focusing on three key areas: policy, engagement and membership. By focusing on these areas, the organization will advance the success of Minnesota’s dairy producers. More information: www.mnmilk.org.
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