USDA's Farm Service Agency (FSA) today announced the extension of the Milk Income Loss Contract Program (MILC) through Sept. 1, 2014, or until a new Margin Protection Program (MPP) for dairy producers is operating. Contracts for eligible producers who enrolled in MILC on or before Sept. 30, 2013 are automatically extended until the MILC program is terminated. Dairy operations with approved MILC contracts will continue to receive payments each month if the payment rate is in effect, FSA details.
"MILC compensates enrolled dairy producers when the Boston Class I milk price falls below $16.94 per hundredweight (cwt.), after adjustment for the cost of dairy feed rations. MILC payments are calculated each month using the latest milk price and feed cost, just as in the 2008 Farm Bill. The payment rate for October 2013 through January 2014 marketings is zero. Payment rates during the months after January 2014 until the termination of the MILC program will be determined as the appropriate data becomes available," the FSA press release explains.
It continues to explain that since payments from the MILC program are limited to a maximum amount of milk production each fiscal year, dairy operations may select a production start month other than the October 2013 (the start of fiscal year 2014). Producers can make this election at their local FSA office between April 14, 2014 and May 30, 2014.
FSA will provide more details regarding MPP and other farm bill programs as they come available on its website.