USDA Extends MILC Sign-Up

Producers have until May 17, 2006, to renew Milk Income Loss Contract program.

Published on: Apr 3, 2006

The U.S. Department of Agriculture has extended the sign up period for the renewed Milk Income Loss Contract program. Producers now have until May 17, 2006, to indicate when they would like to begin receiving monthly payments.

A dairy operation's monthly payment will equal the milk quantity sold in that month multiplied by 34% of the difference between $13.69 per hundredweight, and that month's domestic Class I milk price. The 2002 Farm Bill originally set the payment rate factor at 45%.

Producers may retroactively select any month beginning December 2005 through May 2006 for sign-up on, or before, May 17, 2006. Sign-up will continue after May 17, 2006, throughout the duration of the program. However, after May 17, 2006, producers will not have the option to select a retroactive month for payment for which the payment rate has already been announced. USDA's Commodity Credit Corporation will make payments on an operation-by-operation basis, up to a maximum of 2.4 million pounds of milk produced and marketed by the dairy operation per fiscal year.

Dairy producers can apply for MILC at local FSA offices and online at: www.nmpf.org/newsletter/www.fsa.usda.gov/dafp/psd. More information on MILC is available at local FSA offices and in the FSA MILC fact sheet located online here.

Year

Class I Base

Payment Rate

January

13.38

0.1054

February

13.38

0.1054

March

12.49

0.480

April

11.22

0.8398

May

11.00

0.9133

June

10.92

0.9410

July

11.02

0.9084

August

11.30

0.8125

September

11.86

0.6227

The above chart illustrates the National Milk Producer Federation's estimated payment rates for the remainder of FY 2006.