MILC payment projections updated
Got your fiscal year 2013 Milk Income Loss Contract (MILC) program payment “start month” established?
Brian Gould, UW-Madison dairy economist, updated projected FY ’13 MILC payments based on milk and feed futures prices at the close of trading on Feb 7. The projected payments (cents/cwt.) are down slightly from forecasts a week ago. Projected payments are: January – 11.41¢; February – 39.06¢; March – 60.44¢; April – 42.95¢; May – 34.95¢; June – 26.77¢; July – 3.67¢; and August-September – 0.00¢.
A reminder: The “relief period” for dairy producers with annual production above the payment cap of 2.985 million lbs. and wishing to change their “start month” in FY ’13 is Feb. 1-28.
• The enrollment period for new dairy operations started before Feb. 1, 2013 is Feb. 1-28.
• The retroactive payment rate for September 2012 milk marketings is approximately 59¢/cwt. on eligible milk. FSA began making payments on Feb. 5.
• The retroactive payment rate for October 2012 milk marketings is approximately 2¢/cwt. on eligible milk. But, before the October MILC payment can be issued, dairy farmers must complete a new form, CCC-933 Average Adjusted Gross Income (AGI) Certification and Consent to Disclosure of Tax Information, available at local USDA Service Centers or online at www.fsa.usda.gov/ccc933.
For additional information, visit Gould’s “Understanding Dairy Markets” website: http://future.aae.wisc.edu/.