WASHINGTON — Dairymen, there will be a February payment for the Milk Income Loss Contract (MILC) program, the first time there has been a payment for MILC since April 2010.
The USDA’s Farm Service Agency
announced the February payment rate of $0.3895043 per hundredweight.
According to FSA Administrator Bruce Nelson, milk prices have remained above the $16.94 base used in the MILC calculation, but the increase in feed prices has triggered payments because of the feed ration component.
MILC payments are triggered when the Boston Class I milk price falls below $16.94 per hundredweight, after adjustment for the cost of dairy feed rations.
MILC payments are calculated each month using the latest milk price and feed cost.
The program is authorized through Sept. 30.
Producers must meet the Average Adjusted Gross Income requirement and provide marketing data to the FSA county office in order to qualify.
New dairy producers can apply for program benefits anytime through Sept. 30, 2012, at local FSA offices.