MILC Signup Continues Through Mid-May

Participating dairy operations must select the month they want to start receiving payments for production.

Published on: Apr 25, 2006

USDA's Farm Service Agency announced that payments under the extended Milk Income Loss Contract Program have begun.

2006

Class I Base

Payment Rate

April

11.22

0.8398

May

10.97

0.9248

June

10.99

0.9195

July

11.04

0.9018

August

11.26

0.8264

September

11.72

0.6682

The MILC payment program was extended through September 2007. From Oct. 1, 2005, through Aug. 31, 2007, a dairy operation's monthly payment will equal the milk quantity sold in that month multiplied by 34 percent of the difference between $16.94 per hundredweight and that month's domestic Class I milk price.

USDA's Commodity Credit Corporation makes payments on an operation-by-operation basis up to 2.4 million pounds of milk produced by the dairy per year.
*Graph based on futures as of
April 20, 2006. Months in italics are projections.*

Participating dairy operations must select the month they want to start receiving payments for production. Producers may retroactively select any month beginning October 2005 through May 2006 if they sign up on, or before, May 17, 2006. After May 17, 2006, producers will not have the option of selecting a retroactive month for payment.