Gould: March MILC payment is 82.62¢
PrintWith USDA announcing final March prices affecting the feed adjuster, the March 2012 Milk Income Loss Contract (MILC) program payment will be 82.62¢/cwt., according to Brian Gould, University of Wisconsin-Madison Department of Agriculture and Applied Economics professor.
Using April 30 settlement futures prices for MILC-related contracts, Gould also revised estimates for MILC payments for the remainder of 2012 and early 2013 (see below). He currently expects MILC payments to peak this summer, topping $1.00/cwt. in April, June, July and August of 2012. Estimates are always subject to change. To see a new summary spreadsheet, go to the UW-Madison “Understanding Dairy Markets” website: http://future.aae.wisc.edu/collection/software/current_MILC_est.xls.
2012-2013 MILC payment forecasts
2012 MILC payment forecasts (and actual payments*)
based on futures settlement prices, April 30, 2012
($ per hundredweight)
Forecast Predicted
Target Forecast MILC
Month Mover Mover Payment
Jan. ’12 17.53* 18.80* 0.0000*
Feb. ’12 17.90* 17.03* 0.3895*
Mar. ’12 18.14* 16.30* 0.8262*
Apr. ’12 18.18 15.66* 1.1322
May ’12 17.96 15.85* 0.9515
June ’12 17.82 14.94 1.2963
July ’12 17.62 14.27 1.5081
Aug. ’12 17.14 14.74 1.0805
Sep. ’12 16.65 15.38 0.5708
Oct. ’12 16.47 15.81 0.2970
Nov. ’12 16.31 15.97 0.1533
Dec. ’12 16.16 15.85 0.1378
Jan. ’13 16.11 15.71 0.1787
Feb. ’13 16.09 15.59 0.2256
*Actual Target, Target Mover, MILC Payment
Brian W. Gould, Associate Professor, Department of Agricultural and Applied Economics, University of Wisconsin-Madison ( http://future.aae.wisc.edu/collection/software/current_MILC_est.xls)
