The USDA Milk Income Loss Contract program has been extended, notes the Montana Farm Service Agency. The extended program protects dairy farmers enrolled in the program against income loss through Sept. 1, 2014, or until a new Margin Protection Program for dairy producers set in the new Farm Bill, is operational.
Contracts for eligible producers enrolled in the 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 payments each month if a payment rate is in effect.
MILC compensates enrolled dairy producers when the Boston Class 1 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.
Montana FSA also wants producers to be aware that their offices are now accepting Marketing Assistant Loans and Loan Deficiency Payments requests for eligible 2014 commodities.
MALs and LDPs for the 2014 crop year become available t eligible producers beginning with the harvest/shearing season and extending through a specific commodity's final loan eligibility date.
Sugar commodity loans for 2014 crop will be available to sugar processors beginning Oct. 1, 2014.
MALs and LDPs provide financing and marketing assistance for wheat, feed grains, soybeans and other oilseeds, pulse crops, wool, mohair and honey.
MALs provide producers interim financing after harvest to help them meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows.
Allowing farmers to store their products at harvest facilitates a more orderly marketing of commodities throughout the year.
A producer who is eligible to obtain a loan, but agrees to forgo the loan, may obtain an LDP if such a payment is available.