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USDA announces milk MILC rate

 

Julia A. Wickard, state executive director of USDA's Farm Service Agency (FSA), has announced the February payment rate for the Milk Income Loss Contract (MILC) program is $0.3895043 per hundredweight. This is the first time there has been a monthly payment rate for MILC since April 2010.

"Dairy farmers are impacted by the market price for milk and the price of feed to sustain their herds," Wickard said. "Milk prices have remained above the $16.94 base; however, the increased feed costs have triggered the MILC payment."

FSA compensates eligible dairy producers on a monthly basis when the Boston Class I milk price falls below $16.94 per hundredweight (cwt) as adjusted by the dairy feed ration adjustment. The 2008 Farm Bill authorized MILC through September 30, 2012. Producers must meet the Average Adjusted Gross Income (AGI) requirement and provide marketing data to the FSA County Office in order to qualify. New dairy producers can apply for program benefits anytime through September 30, 2012, at their local FSA office. To monitor monthly price calculations and see payment history, visit FSA online at www.fsa. usda.gov and select “Price Support” under the subject browser.

Dairy operators currently enrolled in MILC need to notify the local county office if there have been any changes to their dairy operation. New dairies that have not previously participated in the MILC program will need to fill out the CCC-580, Milk Income Loss Contract. When producers enroll in MILC, a payment start month is selected. This start month remains the same each year unless a timely change is requested by the dairy.

For more information, producers should visit their local FSA office.