The National Milk Producer Federation (NMPF) is estimating dairy producers who sign up for the Unted States Department of Agriculture Milk Income Loss Contract (MILC) program could receive substantial payments March through July. The estimates are based on yesterday’s future prices.
NMPF estimates the March MILC payment could be 53¢/cwt in March; 79¢/cwt in April; 78¢/cwt in May, 64¢/cwt in June; 45¢/cwt in July, and dime in August.
If producers have not already done so, they must sign up to receive March payments by next Tuesday, February 14th. If producers have already signed up for payments, they could receive a 27¢/cwt MILC payment for February milk production (based on the NMPF estimate).
NMPF says there likely will be no payment in September because of the reduced payment rate formula, which changes the feed price adjustor and then pays only 34% of the difference between the target price and the actual price.