February MILC payment: 38.95¢/cwt.
USDA’s Farm Service Agency (FSA) administrator Bruce Nelson announced the February Milk Income Loss Contract (MILC) program payment rate of 38.95¢/cwt. This is the first time there has been an MILC payment since April 2010.
“Dairy producers are affected by the market price for milk and the price of feed to sustain their herds,” said Nelson. “While milk prices have remained above the $16.94/cwt. base used in the MILC calculation, the increase in feed prices has triggered payments because of the feed ration component.”
MILC payments are triggered when the Boston Class I milk price falls below $16.94/cwt., after adjustment for the cost of dairy feed rations. MILC payments are calculated each month using the latest milk price and feed cost. USDA’s March 29 Ag Prices report, which provides final February feed price estimates, provided the final piece of the formula.
The 2008 Farm Bill authorized MILC through Sept. 30, 2012. Producers must meet the Average Adjusted Gross Income requirement and provide marketing data to the FSA County Office in order to qualify. New dairy producers can apply for program benefits anytime through Sept. 30, 2012, at local FSA offices.
Additional information about the MILC program can be found at http://www.fsa.usda.gov/Internet/FSA_File/milc2011.pdf, or by visiting a local FSA Service Center.