The United States Department of Agriculture announced this week that the May Milk Income Loss Contract (MILC) payment for May will be 74¢/cwt. (The ration cost adjustor was $12.86/cwt, bumping the trigger price to $22.66/cwt.)
The 74¢/cwt payment is the fifth consecutive month of MILC payments, all fueled by high feed costs. The other payments were:
You can read more detail in the MILC program here.
USDA also released the preliminary June U.S. All-milk price at $19.70/cwt, unchanged from May. But that is $3.40 higher than June 2012.
The Midwest leads the nation in alfalfa prices, presumably due to winterkill and late harvest issues. Iowa reported the highest average alfalfa prices in the country at $280/ton with Wisconsin at $275/ton.