The United States Department of Agriculture announced Thursday that the government will be making a Milk Income Loss Contract payment of 39¢/cwt for February milk production. This is the first time a MILC payment has been made since April 2010.
The University of Wisconsin estimates USDA will be making MILC payments now through September, based on current futures prices. The March payment is estimated at 59¢/cwt, April at 89¢/cwt, May at 59¢/cwt, June at 96¢/cwt, July at 75¢/cwt, August at 54¢/cwt and September at 14¢/cwt.
To be eligible for payment, producers must sign up on or before the 14th of the preceding month. Eligible annual milk production is 2,985,000 lb. Once a producer signs up, he or she received payments until the eligible annual milk production level is reached.