Wisconsin Ag Connection - FSA Updates Dairy Producers on MILC Provisions

Wisconsin Ag News Headlines

FSA Updates Dairy Producers on MILC Provisions
Wisconsin Ag Connection - 01/31/2013

Now that the popular Milk Income Loss Contract program has been extended as part of that fiscal cliff bill that Congress approved earlier this month, the U.S. Department of Agriculture is letting dairy producers know about some of the adjustments that were made to the dairy safety net tool. U.S. Farm Service Agency Administrator Juan Garcia says that beginning February 5, USDA will issue payments to dairy farmers enrolled in the MILC for the September 2012 marketings.

"MILC payments are triggered when the Boston Class I milk price falls below $16.94 per hundredweight, after adjustment for the cost of dairy feed rations," Garcia said. "MILC payments are calculated each month using the latest milk price and feed cost."

The FSA announced also announced this week that all dairy producers' MILC contracts are automatically extended to September 30, 2013. Eligible producers therefore do not need to re-enroll in MILC. MILC operations with approved contracts will continue to receive monthly payments, if available.

The payment rate for September 2012 is approximately $0.59 per hundredweight. The payment rate for October 2012 marketings is approximately $0.02 per hundredweight. The payment rate for November 2012 marketings is zero.

Before the October MILC payment can be issued, dairy farmers must complete a new Average Adjusted Gross Income form for 2013. The new form, CCC-933 Average Adjusted Gross Income Certification and Consent to Disclosure of Tax Information, must complete by producers before they can receive payments for a variety of programs administered by FSA and USDA's Natural Resources Conservation Service.

Producers may obtain CCC-933 at their local USDA Service Center or online at www.fsa.usda.gov/ccc933, according to Garcia.

Dairy operations may select a production start month other than October 2012. Producers who want to select a production start month other than October 2012 must visit their local FSA office between February 1 and February 28, 2013, also known as a relief period.

FSA will provide producers with information on program requirements, updates and sign-ups as the information becomes available.

Send this article to a friend

Other Wisconsin Headlines