The March Milk Income Loss Contract payment will be $2.01/cwt, based on feed prices released this afternoon by USDA.
With 16.4 billion lb. of milk produced in March, the MILC payment could pump more than $300 million back out to the dairy economy. With losses approaching $5/cwt, that money is sorely needed.
The feed cost adjustor came in at $7.54/cwt for a 16% dairy ration, based on $3.86/bu corn, $9.12/bu soybeans and $137/ton alfalfa. That pushed the MILC trigger price to $17.14/cwt. And with a Boston Class I price of $12.68, the MILC payment calculates out to $2.01/cwt.
The February MILC payment was $1.51/cwt. Based on preliminary April feed prices also released this afternoon, the April MILC payment will come in at about $1.60/cwt.
Note that MILC payments are paid on the first 2.985 million lb. of annual milk production—roughly 150 cows. Once that cap is reached, regardless of previous payment rate, a dairy farm is no longer eligible for additional payments.
The March U.S. All-milk price is pegged at $11.80/cwt; the April All-Milk is $12.