Milk Income Loss Contract (MILC) Program

Estimated MILC Payments

Year

Month

Rates ($/cwt)

Fiscal Year

2005

Oct*

$0.0000

 2005/2006

2005

Nov*

$0.0000

 2005/2006

2005

Dec*

$0.0408

 2005/2006

2006

Jan*

$0.1054

 2005/2006

2006

Feb*

$0.1054

 2005/2006

2006

March*

$0.4080

 2005/2006

2006

April*

$0.8398

 2005/2006

2006

May*

$0.9248

 2005/2006

2006

June*

$0.9996

 2005/2006

2006

July*

$0.7990

 2005/2006

2006

Aug*

$0.9248

 2005/2006

2006

Sept*

$0.9656

 2005/2006

2006

Oct*

 $0.4318 2006/2007

2006

Nov*

 $0.4386 2006/2007

2006

Dec*

 $0.4284 2006/2007

2007

Jan*

 $0.0340 2006/2007

2007

Feb*

 $0.1020 2006/2007

2007

Mar*

 $0.0000 2006/2007

2007

Apr*

 $0.0000 2006/2007

2007

May*

 $0.0000 2006/2007

2007

June*

 $0.0000 2006/2007

2007

July*

 $0.0000 2006/2007

2007

Aug*

 $0.0000 2006/2007

2007

Sep*

 $0.0000 2006/2007

*Denotes actual payment, others are only estimates

Estimate Source:  Cornell University model using closing Class III and IV futures prices.  Note: futures prices fluctuate daily.

 

The signup period began March 13, 2006 with the publication of the new rules for the program that was extended by Congress and signed by President Bush in December. The original MILC program expired Sept. 30, 2005. 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/.

  • Producers can obtain the signup form CCC-580X at their County FSA office or by clicking here to download (Requires Adobe Acrobat Reader)

  • The Appendix can be downloaded by clicking here: (Requires Adobe Acrobat Reader)

  • The official FAS Notice LD-565 can be downloaded by clicking here: (Requires Adobe Acrobat Reader)

  • See below for additional guidelines

Program guidelines:

  • Extended signup phase:  Begins May 18, 2006, the day after the initial signup ends.  The extended signup will continue throughout the duration of the MILCX program, ending on September 30, 2007.  Start month selection rules are similar to the previous program.

  • The MILCX production start month selected by the dairy operation must be designated on CCC-580X on or before the 14th of the month before the production start month selected by the producer.  The production start month cannot be changed if the new month selected has already begun or already passed. 

  • Beginning with the month selected by the dairy operation, MILC payments will be issued based on the selected months' production and for each consecutive month's production thereafter, with a payment rate in effect, until either the maximum payment quantity of 2.4 million pounds is reached or the applicable FY ends.

  • The payment rate will be calculated by subtracting the Boston Class 1 price from $16.94 then multiplying by 34 percent during the period October 2005 through August 2007.  According to the notice, the difference will be multiplied by 0 percent for the September 1, 2007 through September 30, 2007 payment.

  • There is no limit on the number of times the MILCX payment start month may be changed, as long as the change occurs on or before the 14th of the month before payment is sought.   

  • Milk production produced will not count towards a dairy operations maximum eligible quantity of 2.4 million pounds for months when there is no payment rate for that month or for months that proceed the start month designated.

 

 

 

 

 

 

 
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