$700 million in MILC payments projected

February 11, 2009 06:00 PM
            USDA projects it will send out $700 million in Milk Income Loss Contract (MILC) payments this year to dairy producers. (Go to: http://www.ers.usda.gov/Briefing/FarmIncome/nationalestimates.htm). In 2008, USDA spent less than $1 million on MILC payments.
            The agency is projecting milk cash receipts will decline 35% in 2009. Milk prices are expected to start a slow recovery later in the year, as more cows are culled. Overall net farm income for all farms is expected to decline 20%.
            On the plus side, fuel and oil costs are also expected to decline 33% this year. Fertilizer will also be down, perhaps 12%, and pesticides down nearly 7%. Seed costs are expected to climb 3%.

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