The United States Department of Agriculture announced the April Milk Income Loss Contract (MILC) payment at $1.21/cwt. this afternoon.
This comes on the heels of an 83¢/cwt. payment in March and a 39¢/cwt. payment in February. And based on current futures prices, it appears the MILC payment will continue through August. Based on current prices, the University of Wisconsin is predicting a 75¢/cwt. payment in May, 88¢ in June, 68¢ in July and 25¢ in August.
In September, the formula changes—reverting to a 34% payment rate of the difference between the $16.94 trigger price and the Class I price in Boston. The feed adjustor also will increase. Both factors will make MILC payments less likely.
The MILC program is scheduled to end September 30 with the conclusion of the current Farm Bill.
More information on the MILC payment can be found here
. Predictions of future MILC payments can be found here