MILC Extended While New Farm Bill is Implemented
Wisconsin Ag Connection - 03/31/2014
Though it will not likely be needed this year because of the higher milk prices, the USDA's Farm Service Agency announced that the Milk Income Loss Contract program will be extended through September 1 as the details of the new farm bill are being worked out. Federal FSA Administrator Juan Garcia
announced Friday that contracts for eligible producers enrolled in MILC will automatically be extended until the termination date of the program. Dairy operations with approved MILC contracts will continue to receive monthly payments if a payment rate is in effect.
The extended MILC protects dairy farmers enrolled in the program against income loss or until the new Margin Protection Program for dairy producers, which was established by the 2014 farm bill, is operational.
"MILC compensates enrolled dairy producers 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, just as in the 2008 farm bill. The payment
rate for October 2013 through January 2014 marketings is zero. Payment rates during the months after January 2014 until the termination of the MILC program will be determined as the appropriate data becomes available."
Since MILC payments are limited to a maximum amount of milk production each fiscal year, dairy operations may select a production start month other than October 2013. Producers who want to select a different production start month must visit their local FSA office between April 14 and May 30.
The agency will provide producers with information on program requirements, updates and sign-ups as the information becomes available.