MILC to offer 'start month' relief period
USDA’s Farm Service Agency (FSA) released additional information regarding the Milk Income Loss Contract (MILC), promising a “start month” relief period for dairy farmers producing more milk than the MILC payment cap of 2.985 million lbs. per year. The length of the relief period will be announced later, according to a notice sent to state and county FSA offices on Jan. 24.
Many of the details in the notice were already anticipated. Under the American Taxpayer Relief Act of 2012, signed into law by President Obama on Jan. 2, virtually all dates regarding MILC payment calculations, price triggers and adjusters and payment caps were changed from “2012” to ”2013”
As a result of legislative changes, retroactive MILC payments were triggered for September and October 2012. The September 2012 payment is 59.44¢/cwt. The October MILC payment is 2.37¢/cwt.
However, with the low October 2012 payment – the first month of fiscal 2013 – of just over 2¢/cwt., most larger producers would not have chosen to keep October as their “start month,” especially with MILC payments forecast to be higher in 2013. Because producers were not able to make timely “start month” selections for fiscal year 2013, FSA will authorize a “relief period” (to be announced), allowing MILC participants to select any “start month” month in fiscal year 2013.
DairyBusiness will post latest MILC payment projections as they become available. Contact your local USDA/Farm Service Agency office for further information.