USDA Opens Dairy Indemnity Payment Program Signup to Assist with Livestock Losses due to Contamination

Dairy producers in New Mexico can now apply to receive a payment for loss of dairy cows because of contamination, including from per- and polyfluoroalkyl substances (PFAS), through the Dairy Indemnity Payment Program (DIPP). USDA updated DIPP by authorizing indemnification of contaminated cows to address long term milk contaminations in December 2021.  

DIPP provides cow indemnification to dairy producers when a public regulatory agency directs them to remove their raw milk from the commercial market because milk and dairy cows have been contaminated. Through the DIPP application process, USDA will determine if the milk and dairy cows are no longer eligible to be commercially marketed due to contamination caused by PFAS.      

To be eligible to receive DIPP payments, the producer must provide:   

• Inventory of all contaminated cows and heifers including deceased and depopulated cows since the contamination occurred. 
• Adepopulation/disposal plan describing how, where and when cows will be depopulated and disposed.  
• Approval of depopulation/disposal plan from applicable public agency. 
• Remediation efforts undertaken by producer. 
• Documentation the cows are not marketable through normal cull cow market facilities. 
• Have produced whole milk that was removed from the commercial market pursuant to the direction of a public agency.  
• Not have been responsible for the milk contamination.  
• Not have been indemnified for the same loss from another source.  
• Certify compliance with Highly Erodible Land Conservation (HELC) and Wetland Conservation (WC) provisions.
• Submit a completed FSA-373B to the FSA local office no later than December 31 following the end of the fiscal year in which the loss occurred.     

DIPP cow indemnity payments will be paid on 100% of the fair market value according to the Livestock Indemnity Program pay rate for the application claim year. Applications must be received in the County Office by December 31 following the end of fiscal year the loss occurred, or such later date as the Deputy Administrator will specify.   

To learn more or to participate in DIPP, New Mexico producers should contact their local USDA Service Center.