The United States Department of Agriculture announced this week that the June Milk Income Loss Contract payment is $1.37/cwt.
The payment marks the fifth consecutive month qualifying dairy producers will receive a MILC payment this year. The $1.37 payment is the largest payment offered since the spring/summer of 2009.
The June trigger price for payment was $21.53, based on a feed price of $11.78/cwt. That feed price adjustor added $3.04 to the Boston Class I price, which is the basis for determining a MILC payment.
Projections by the University of Wisconsin, based on current futures prices, show MILC payments of $1.87/cwt in July and $1.31/cwt in August are possible. For those estimates, click here. But even if there were a possible payment in September, by law it would be reduced to 34% of the difference between the adjusted Boston price and $16.94. The current payment rate is 45% of that difference.
Producers are eligible to receive MILC payments on the first 2,985,000 lb. of annual production. On a 20,000 lb. herd average, that equates to about 150 cows.
For a list of MILC payments, click here.