MILC
The Milk Income Loss Contract (MILC) program was reinstituted in the Farm Bill extension passed by Congress and signed by the President at the beginning of January 2013. MILC has been extended through August 31, 2013 at a payment rate of 45%, covering 2.985 million total pounds of milk per year with a feed adjuster factor of $7.35. In September 2013, the payment rate falls to 34%, the milk production covered drops to 2.4 million total pounds, and the feed adjuster factor goes up to $9.50.
MILC payments for September 2012 will now be paid at the rates in effect through August 2013. Producers who still had milk production eligible for payment should go to their FSA office to make certain their September production is on record so they receive that payment. USDA has confirmed they will begin issuing September 2012 payments on Feb. 5.
|
MILC Payment Forecasts Based on Futures |
|
Settlement Prices May 9, 2013 |
|
|
Year |
Month |
Target |
Forecast Mover |
MILC Payment |
|
|
|
|
$/Cwt. |
|
|
2012 |
Jan. |
17.53 |
18.80 |
0.0000 |
|
|
Feb. |
17.90 |
17.03 |
0.3895 |
|
|
Mar. |
18.14 |
16.30 |
0.8262 |
|
|
Apr. |
18.35 |
15.66 |
1.2110 |
|
|
May |
18.55 |
15.85 |
1.2164 |
|
|
June |
18.28 |
15.24 |
1.3677 |
|
|
July |
19.15 |
15.51 |
1.6382 |
|
|
Aug. |
19.83 |
16.55 |
1.4761 |
|
|
Sept. |
18.91 |
17.59 |
0.5944 |
|
|
Oct. |
18.93 |
18.88 |
0.0237 |
|
|
Nov. |
19.25 |
20.70 |
0.0000 |
|
|
Dec. |
19.33 |
21.39 |
0.0000 |
|
2013 |
Jan. |
19.23 |
18.97 |
0.1180 |
|
|
Feb. |
19.37 |
18.21 |
0.5222 |
|
|
Mar. |
19.48 |
17.80 |
0.7546 |
|
|
Apr. |
18.90 |
17.66 |
0.5589 |
|
|
May |
18.70 |
18.35 |
0.1566 |
|
|
June |
18.35 |
19.00 |
0.0000 |
|
|
July |
17.99 |
19.57 |
0.0000 |
|
|
Aug. |
17.39 |
19.80 |
0.0000 |
|
|
Sept. |
16.77 |
19.80 |
0.0000 |
|
|
Oct. |
16.55 |
19.74 |
0.0000 |
|
|
Nov. |
16.36 |
19.50 |
0.0000 |
|
|
Dec. |
16.20 |
19.45 |
0.0000 |
|
2014 |
Jan. |
16.17 |
18.97 |
0.0000 |
|
|
Feb. |
16.16 |
18.15 |
0.0000 |
|
|
Mar. |
16.16 |
17.95 |
0.0000 |
|
|
Apr. |
16.17 |
19.85 |
0.0000 |
|
|
May |
16.20 |
17.36 |
0.0000 |
|
|
Bold - Actual |
|
Projections - UW |
The U.S. Department of Agriculture (USDA) has announced the 2012-2013 MILC sign-up period. If dairy farmers would like to select a production start month other than October 2012 for the 2012-13 program period, they must visit their local FSA office between Feb. 1 and Feb. 28, 2013.
For more information on the program, please see the FSA website.
|
.jpg)
