U.S. Department of Agriculture Farm Service Agency Administrator Juan M. Garcia Friday announced the extension of the Milk Income Loss Contract program through Sept. 1, 2014, or until a new Margin Protection Program for dairy producers, established by the 2014 Farm Bill, is operational.
The extended MILC protects dairy farmers enrolled in the program against income loss.
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, 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, 2014, and May 30, 2014.