February MILC payment $1.51/cwt

March 30, 2009 07:00 PM
 
            USDA announced the February Milk Income Loss Contract (MILC) payment rate will be $1.51/cwt, adjusted for a national average dairy feed price of $7.73/cwt. Without the feed adjustment, the February MILC payment would have been $1.34/cwt. For more information, go to: www.fsa.usda.gov/FSA/webapp           
            Based on February's estimated U.S. milk production of 14.745 billion lb., the MILC payments could pump some $220 million into the nation's dairy industry. That's assuming all producers signed up for MILC payments starting in February. MILC payments should start flowing into producers' checking accounts this week.
            The MILC payment is based on an adjusted trigger lever of $17.33/cwt (the $16.94/cwt Boston Class I trigger plus the feed adjuster). The actual Class I price in Boston was $13.97. (Note the difference between the trigger and the actual Class I price is then multiplied by 45% to get the actual payment rate.)
            The feed adjustment rate is based on national average prices of $3.87/bu for corn, $9.55/but for soybeans and $143/ton for alfalfa hay. Those prices were released by the National Agricultural Statistics Service yesterday. For more information, go to: usda.mannlib.cornell.edu/usda/current/AgriPric/AgriPric-03-30-2009.txt
            The March MILC payment will be at least $1.92/cwt and the April MILC will be at least $1.50/cwt. Preliminary feed prices for March are $3.96/bu for corn, $9.13/bu for soybeans and $137/ton for alfalfa, suggesting a feed adjustment rate of $7.63. If those prices hold, the March MILC payment will be about $2.04/cwt.

Back to news


 

Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close