The extension of the 2008 Farm Law also extends the Milk Income Loss Contract (MILC) program, and reportedly makes it retroactive to October 1, 2012. USDA has yet to release sign-up details.
According to estimates released by the National Milk Producers Federation (NMPF), there could be a 2¢/cwt MILC payment in October 2012, and there could possibly be a February 2013 payment of 17¢/cwt based on current futures prices. April and June could also generate small payments of a few cents.
With the Farm Law extension, MILC will cover 2.985 million lb. of annual production at a payment rate of 45% and a feed adjustor factor of $7.35. For September 2013, the coverage drops to 2.4 million lb. of annual milk production, 34% payment rate and a $9.50 feed adjustor.
NMPF notes that producers should not contact their local USDA Farm Service Agency offices until USDA makes an official announcement regarding implementation of the program.