In its News for Dairy Co-ops released this afternoon (www.nmpf.org/latest_news/news_dairy_coops/jan_6_09articles
), the National Milk Producers Federation projected Milk Income Loss Contract payments will start in February at 94¢/cwt. NMPF estimates the payment will jump to $1.64/cwt in March, and payments could stretch out through February 2010.
The projections average $1.10/month over the last eight months of fiscal year 2009, about 25% more than they would have without the new feed cost adjustor. The adjustor bumps the $16.94 Boston Class I target price up when feed costs exceed $7.35/cwt for 16% dairy feed.
The payment limit has also been increased to 2.895 million lbs, or roughly 150 cows. The previous limit had been 2.4 million lb. per farm. For more information, go to http://www.fsa.usda.gov
and click on Price Support Program or contact your local Farm Service Agency office.