USDA's MILC Program Underway

WASHINGTON - Apr 17/06 - SNS -- The USDA's Farm Service Agency (FSA) has begun making payments under the extended Milk Income Loss Contract Program (MILC) are beginning today.

The Deficit Reduction Act of 2005 extended MILC through Sept. 30, 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 (100 pounds) and that month's domestic Class I milk price.

USDA's Commodity Credit Corporation (CCC) makes 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.

Producers may sign up for fiscal years 2006-2007 MILC during an initial sign-up phase ending May 17, 2006, or during an extended sign-up phase from May 18, 2006, through Sept. 30, 2007. Eligible dairy producers can apply for program benefits anytime during either sign-up phase according to the production start-month selection rules applicable for each sign-up phase.

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

Eligible dairy producers are those who commercially produce milk in the United States. To receive program approval, producers must enter into a contract with CCC to provide monthly marketing data. Dairy producers can apply for MILC at local FSA offices and online at: www.fsa.usda.gov/dafp/psd/.