Pandemic Market Volatility Assistance Program

PMVAP funds will be available early in 2022.

Throughout the fall, the PMVAP team has been working with handlers to gather and verify data needed to calculate and distribute PMVAP monies to eligible dairy farmers. Thank you to the handlers who have been diligently working to compile data and to producers who have been providing AGI attestations to their handlers so that the program can move forward. USDA has begun the next phase of sending out draft agreements to eligible handlers detailing the requirements of the program and how much PMVAP money they will be responsible for distributing to their eligible producers. When the signed agreements are returned, the internal USDA clearance process begins. Once the signed agreements have been approved, USDA will distribute the producer payment dollars to handlers who will then have 30 days to disburse monies to dairy producers.

USDA is striving to begin disbursing monies as soon as possible and plans to distribute monies at the beginning of 2022. Once a handler receives their PMVAP payment, they will have 30 days to disburse monies to producers. USDA anticipates that eligible dairy farmers will receive PMVAP payments during January and February 2022.  

Through the Pandemic Market Volatility Assistance 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.

  • Payments will reimburse qualified dairy farmers for 80 percent of the revenue difference per month based on an annual production of up to 5 million pounds of milk marketed and on fluid milk sales from July through December 2020.
  • USDA will make payments through agreements with independent handlers and cooperatives. Handlers and cooperatives will distribute the monies on the same basis July - December 2020 payments were made to their dairy farmer suppliers. USDA will reimburse handlers and cooperatives for allowed administrative costs.
  • USDA contacted eligible handlers and cooperatives to notify them of the opportunity to participate in the program and will distribute payments to participating handlers within 60 days of entering into an agreement.
  • Once payment is received, a handler will have 30 days to distribute monies to qualifying dairy farmers.  Handlers will also be reimbursed for limited administrative and educational costs.
  • As part of the program, handlers also will provide virtual or in-person education to dairy farmers on the program and other dairy topics, selecting from educational information available from USDA or other sources. A handler will have until March 1, 2022, to provide educational opportunities to dairy farmers.

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