Abstract #T151

# T151
Participation in the 2015 Margin Protection Program by Idaho dairy producers.
Richard J. Norell*1, Benjamin M. Eborn2, 1University of Idaho, Idaho Falls, ID, 2University of Idaho, Driggs, ID.

A mail-in survey was conducted to evaluate participation in the Margin Protection Progam (MPP) and to gather producer input for future MPP education. The survey was mailed to every registered dairy in Idaho (n = 515) and 107 surveys were returned (20.7% response rate). Survey data were compared with Proc GLM and Proc Freq in SAS (SAS Inst. Inc., Cary, NC). Dairies were categorized by annual milk sales: small (<1,814 tonnes, 40.2%), medium (1,814 to 5,443 tonnes, 23.3%), large (5,444 to 11,399 tonnes, 19.6%) or very large (>11,399 tonnes, 16.8%). Eighty-two percent of respondents described their MPP knowledge as moderate to very high and their decision to participate as not difficult to somewhat difficult. On-line MPP decision tools were used by 30% of respondents and 28% calculated an average historical margin basis (herd margin - MPP margin) for their dairy. Sixty-eight percent of respondents elected to participate in MPP and 31 out of 73 elected to buy up coverage over basic ($4.00/45 kg). Participation rate was greater (P < 0.01) for dairies producing >11,399 tonnes but the percentage of producers buying up coverage was higher (P < 0.01) for those producing <5,443 tonnes. The overall mean margin and coverage rate were $5.03 ± 0.16 and 84 ± 2%, respectively, and averaged $6.42 ± 0.16 and 76 ± 4% for those purchasing higher coverage. Mean buy up coverage was similar (P > 0.20) between herd size categories. Producers indicated an interest in learning how to calculate and interpret margin basis plus training on how to use and interpret the on-line MPP decision tools. Producers preferred future MPP training with the following methods: producer meetings (76 ± 4%), newsletters (70 ± 4%), magazine articles (60 ± 4%), web based materials (48 ± 4%), and webinars (24 ± 4%). Preference for educational method did not differ between herd size categories (P > 0.25). We conclude that the MPP is an important management tool for Idaho dairy producers and further MPP training is desired by the industry.

Key Words: Margin Protection Program, risk management