USDA yesterday announced $100 million in additional, targeted payments under the Pandemic Market Volatility Assistance Program (PMVAP) for thousands of eligible dairy farmers who received only a portion of the losses incurred on their production during the second half of 2020. The update will provide significant relief for medium-sized and larger producers who missed out on equitable payments during the program’s first round of assistance. 

NMPF and its members have been engaged with USDA and congressional leaders to remedy the program’s shortfalls since it was announced in Aug. 2021, arguing that disaster aid should not include limits that prevent dairy farmers from being meaningfully compensated for their losses. NMPF will continue in its efforts to remedy losses among producers of all sizes, as well as for those farmers unable to receive program funds because their milk was not pooled on a Federal Milk Marketing Order but still endured similar price losses.

USDA this week also announced the new Organic Dairy Marketing Assistance Program, which will support organic dairy farms that have faced a unique set of challenges over the past few years. More details about this assistance will be available later this year.
What is PMVAP?
Announced in Aug. 2021, PMVAP was created to reimburse producers for unanticipated losses created during the pandemic when federal dairy food box purchases weighted heavily toward cheese which, combined with a change to the Class I mover formula, created the unintended consequence of significant financial losses. 

The first round of PMVAP funds distributed $250 million to more than 25,000 eligible dairy farmers in early 2022, reimbursing qualified producers for 80 percent of the revenue difference per month on up to 5 million pounds of milk marketed from July through December 2020. 

The second round of relief will reimburse producers who received limited assistance because of the program’s arbitrary five-million-pound cap. Because of the cap, USDA was not able to spend the full $350 million originally allocated for the program in 2021. This new round of payments will be made using the $100 million that remained unspent from the initial round. 
Am I eligible for supplemental relief? 
USDA’s Agricultural Marketing Service will make second round PMVAP payments to eligible dairy farmers for fluid milk sales between 5 million and 9 million pounds from July through December 2020. This level of production was not eligible for payment under the first round of the PMVAP. 

Additional payments will not be made to those producers whose milk marketings for July-December 2020 did not exceed five million pounds.
How will payments be calculated?
Payment rates will be identical to the first round of payments, 80 percent of the revenue difference per month, on fluid milk sales from 5 million to 9 million pounds from July through December 2020.

The payment rate will vary by region based on the actual losses on pooled milk related to price volatility. USDA is working closely with cooperatives and other handlers to determine producer payments based on a several variables.  
How will supplemental funds be distributed?
USDA will again make PMVAP payments through agreements with cooperatives and independent handlers. Cooperatives and handlers will distribute the funds on the same basis July – December 2020 payments were made to their supplying farmers using a formula set by USDA. AMS will be the primary point of contact within USDA for cooperatives.
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