As a result of low dairy prices, Milk Income Loss Contract (MILC) payments are being distributed to ensure that dairy producers have the financial assistance they need.
Beginning April 1, producers participating in USDA’s MILC program will begin to receive payments for the month of February. USDA makes MILC payments on a monthly basis when the Boston Class I milk price falls below $16.94 per hundredweight as adjusted for feed costs.
USDA determines the per hundredweight payment rate for the applicable month by subtracting the Boston Class I price for that month from the $16.94 MILC payment trigger price, established in the 2008 farm bill, as adjusted for feed costs, and multiplying the difference by 45 percent. The MILC payment trigger price of $16.94 is adjusted upward when the National Average Dairy Feed Ration Cost for a month is greater than $7.35 per cwt.
USDA’s National Agricultural Statistics Service recently released the data for determining the Average Dairy Feed Ration Cost for February on March 30. Using this information and the formula contained in the 2008 act, the MILC payment trigger for February has been adjusted to $17.33, for a final MILC payment rate of $1.5132.
Information about the MILC program, including the monthly Boston Class I price along with final MILC payment rates are posted online at: http://www.fsa.usda.gov/FSA.
That’s all for now,