USDA to issue MILC payments in February
January 30, 2013 | 03:54 PM
The Agriculture Department’s Farm Service Agency announced today that that beginning February 5, USDA will issue payments to dairy farmers enrolled in the Milk Income Loss Contract (MILC) program for the September 2012 marketings.
FSA Administrator Juan Garcia noted in a news release that the payments were authorized under the American Taxpayer Relief Act, which extended the 2008 farm bill including the MILC program through September 30.
MILC payments are triggered when the Boston Class I milk price falls below $16.94 per hundredweight, after adjustment for the cost of dairy feed rations. MILC payments are calculated each month using the latest milk price and feed cost.
As announced by FSA last week, all dairy producers’ MILC contracts are automatically extended to September 30. Eligible producers therefore do not need to re-enroll in MILC, and operations with approved contracts will continue to receive monthly payments, if available.
The payment rate for September 2012 is approximately 59 cents per hundredweight. The payment rate for October 2012 marketings is approximately 2 cents per hundredweight. The payment rate for November 2012 marketings is zero.
Before the October MILC payment can be issued, dairy farmers must complete a new Average Adjusted Gross Income (AGI) form for 2013, the agency said.
Dairy operations may select a production start month other than October 2012, but if they do, they must visit their local FSA office between February 1 and February 28.
FSA Administrator Juan Garcia noted in a news release that the payments were authorized under the American Taxpayer Relief Act, which extended the 2008 farm bill including the MILC program through September 30.
MILC payments are triggered when the Boston Class I milk price falls below $16.94 per hundredweight, after adjustment for the cost of dairy feed rations. MILC payments are calculated each month using the latest milk price and feed cost.
As announced by FSA last week, all dairy producers’ MILC contracts are automatically extended to September 30. Eligible producers therefore do not need to re-enroll in MILC, and operations with approved contracts will continue to receive monthly payments, if available.
The payment rate for September 2012 is approximately 59 cents per hundredweight. The payment rate for October 2012 marketings is approximately 2 cents per hundredweight. The payment rate for November 2012 marketings is zero.
Before the October MILC payment can be issued, dairy farmers must complete a new Average Adjusted Gross Income (AGI) form for 2013, the agency said.
Dairy operations may select a production start month other than October 2012, but if they do, they must visit their local FSA office between February 1 and February 28.
