USDA has announced the March Milk Income Loss Contract (MILC) payment at 82.6¢/cwt, based on milk and feed prices for March. That follows a payment of 39¢/cwt on February milk production, the first time MILC payments were made since April 2010.
The payments are made to dairy producers who have signed up for the program. Eligible annual production is 2,985,000 lb. of milk.
Based on current futures prices, the University of Wisconsin estimates there will be a $1.13/cwt MILC payment in April, 95¢/cwt in May, $1.29/cwt in June, $1.50/cwt in July, $1.08 in August and 57¢/cwt. in September.
The MILC program is slated to end with the expiration of the current Farm Bill on September 30, 2012. But several bills have been proposed to extend the program for a year as a transition to a new dairy program, whatever that might end up to be.