Hello northeast Ohio and northwest Pennsylvania dairy farmers.
Ohio State University Extension in Ashtabula County will hold a milk marketing workshop from 10:30 a.m. to 2:30 p.m. Nov. 25 at the Williamsfield Community Center in southern Ashtabula County. This workshop, New Tools for the Dairy Farm Manager — Managing your Margin and Profits with MILC-2008 and LG Margin, will feature Cameron Thraen, Ohio State University Extension dairy economist.
This program is a must-attend for dairy producers looking to optimize their dairy income and minimize their risk. This workshop will allow dairy producers to learn more about our current dairy markets, hear Thraen’s milk market outlook for 2009 and will provide information on the changes to the Dairy Provisions in the Food, Conservation and Energy Act of 2008 (better known as the farm bill).
There are a few new provisions to the Milk Income Loss Contract program, which was established under the 2002 farm bill. Thraen and representatives from the local Farm Service Agency will share their insight on these changes. If you are currently enrolled in the MILC program, you will want to hear first hand how these changes may affect you.
Producers will learn how a dairy feed ration cost adjuster has been incorporated to the MILC trigger price. They will also hear details on the increase of total eligible pounds to 2.985 million pounds and the return to a 45 percent payout. Thraen will also provide producers with a MILC Excel calculator that has incorporated these changes.
This program includes a worksheet for MILC calculations by month for the fiscal year. A producer can use this program to enter average dairy yield, number of cows and the starting month for MILC payments.
The program will then calculate the anticipated MILC payments for each month and the anticipated total payout.
With the new dairy feed price adjustment, Thraen predicts there will be payouts under the MILC program in the coming year.
Thraen will also share a worksheet which can be used to calculate the expected or anticipated National Average Dairy Feed Cost ration value, based on the rules for the MILC program. A producer can enter his expected feed prices (corn, soybean, alfalfa hay) and the worksheet will calculate the National Average Dairy Feed Cost ration value. These values can be used to play a “what-if” game using the FYMILC-Calc worksheet.
Another important risk management tool made available to dairy producers in the new farm bill is the Livestock Gross Margin-Dairy insurance product. Participants in this workshop will learn more about this program and gain access to an Excel calculator that allows producers to calculate the expected payout and premium cost for purchasing a given level of gross margin insurance.
The registration fee for this program is $10 per person and includes refreshments, handouts and lunch.
That’s right, $10. It will be the best $10 you spend this fall.
Pre-registration for this program is required by Nov. 17.
Learn about the dairy markets and the risk management strategies from our new farm bill.
If you are interested in this program, contact the Ashtabula County Extension office at 440-576-9008 today.
I hope to see many of our dairy producers there. Have a good and safe fall.