WASHINGTON — The USDA’s Farm Service Agency will issue payments to dairy farmers enrolled in the Milk Income Loss Contract (MILC) program for the September 2012 marketings, beginning Feb. 5.
The 2008 farm bill extension continues the MILC program through Sept. 30, 2013.
The formula
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.
As announced by FSA Jan. 22, all dairy producers’ MILC contracts are automatically extended to Sept. 30, 2013, so eligible producers do not need to re-enroll in MILC.
MILC operations with approved contracts will continue to receive monthly payments, if available.
The payment rate for September 2012 is approximately 59 cents per hundredweight. The payment rate for October 2012 marketings is approximately 2 cents per hundredweight. The payment rate for November 2012 marketings is zero.
Will need new form
Before the October MILC payment can be issued, dairy farmers must complete a new Average Adjusted Gross Income (AGI) form for 2013.
The new form, CCC-933 Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax Information, must complete by producers before they can receive payments for a variety of programs administered by FSA and USDA’s Natural Resources Conservation Service.
Producers may obtain CCC-933 at their local USDA Service Center or online at www.fsa.usda.gov/ccc933.
Dairy operations may select a production start month other than October 2012. Producers who want to select a production start month other than October 2012 must visit their local FSA office between Feb. 1 and Feb. 28, 2013, also known as a relief period.
For more information on MILC, contact a local FSA county office.
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