USDA announces the extension Milk Incove Loss Contract program for 2014
The USDA Farm Service Agency (FSA) recently announced the extension of the Milk Income Loss Contract (MILC) program, which protects dairy farmers against income loss through Sept. 1, 2014, or until a new Margin Protection Program for dairy producers (MPP) 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.
FSA will provide producers with information on program requirements, updates and sign-ups as the information becomes available.