MILC ‘start month’ relief period, new dairy enrollment is Feb. 1-28
USDA’s Farm Service Agency (FSA) announced additional details regarding the “relief period” for dairy producers wishing to change their Milk Income Loss Contract (MILC) program payment “start months” for fiscal year 2013. The relief period will run from Feb. 1-28 for dairy farmers producing more milk than the MILC payment cap of 2.985 million lbs. per year.
After the authorized relief period for FY ’13, beginning March 1, 2013, all production start month changes must be made according to normal start month selection provisions.
Enrollment will also be accepted during the relief period for producers with new dairy operations that began operation before Feb. 1, 2013.
As announced last week, for producers under the annual milk production payment cap – and for those who produce milk above the annual cap but who do not wish to change their start month – MILC contracts are automatically extended through Sept. 30, 2013, so there is no need for producers to re-enroll in MILC. However, because the program extension was approved well after the beginning of the fiscal year, affected producers were not able to make timely start month selections for FY ’13 according to normal selection provisions.
Other details announced previously include:
• MILC payment formulas mirror the 2012 schedule. Payments will be calculated at the higher level – 45% of the difference between the federal order Class I base price trigger for Boston, Mass. ($16.94/cwt.) and the actual Class I price – until Aug. 31. Calculations revert to the lower 34% level in September 2013, and the program expires on Sept. 30.
• The National Average Dairy Feed Ration Cost (NADFRC) adjuster is $7.35/cwt. through Aug. 31, then rises to $9.50/cwt. for the final month of the program.
• The annual milk production cap eligible for payments is 2.985 million lbs. through Aug. 31, then drops to 2.4 million lbs. during September 2013. From October 2012 through August 2013 an operation may receive payments on marketings up to 2.985 million lbs. An operation is not eligible for a September 2013 payment if that operation has received MILC payments on more than 2.4 million lbs. before Sept. 1, 2013.
As a result of legislative changes, MILC payments were triggered in September 2012 for fiscal year 2012 and October 2012 for fiscal year 2013. State and county FSA offices are collecting production records to determine MILC payments.
The September 2012 payment is 59.44¢/cwt. Producers who had not exceeded the maximum eligible quantity of 2.985 million lbs. of milk in fiscal year 2012 will be eligible for that payment. Producers who had exceeded the 2.985 million lb. cap will not be eligible.
The October MILC payment rate is 2.37¢/cwt. According to the FSA notice, computer software must be enhanced before those payments can be processed.
Also read: MILC to offer ‘start month’ relief period