Hendricks County Flyer, Avon, IN

Business

April 2, 2014

USDA announces extensionof the income loss program

U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) Administrator Juan M. Garcia recently announced the extension of the Milk Income Loss Contract (MILC) program.

The extended MILC protects dairy farmers enrolled in the program against income loss through Sept. 1, or until a new Margin Protection Program for dairy producers (MPP), established by the 2014 Farm Bill, is operational.

Contracts for eligible producers enrolled in MILC on or before Sept. 30, 2013, are automatically extended until the termination date of the MILC program. Dairy operations with approved MILC contracts will continue to receive monthly payments if a payment rate is in effect.

MILC compensates enrolled dairy producers when the Boston Class I milk price falls below $16.94 per hundredweight (cwt), after adjustment for the cost of dairy feed rations. MILC payments are calculated each month using the latest milk price and feed cost, just as in the 2008 Farm Bill. The payment rate for October 2013 through January 2014 marketings is zero. Payment rates during the months after January 2014 until the termination of the MILC program will be determined as the appropriate data becomes available.

Since MILC payments are limited to a maximum amount of milk production each fiscal year, dairy operations may select a production start month other than October 2013 (the start of fiscal year 2014). Producers who want to select a different production start month must visit their local FSA office between April 14 and May 30.

FSA will provide producers with information on program requirements, updates and sign-ups as the information becomes available. For more information on MILC, contact a local FSA county office or visit the FSA website at www.fsa.usda.gov.

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