USDA extends milk income loss contracts

Under provisions of the U.S. Troop Readiness, Veteran’s Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007, the Milk Income Loss Contract Extension (MILCX) Program extended benefits to dairy producers through the month of September, 2007.

This change now permits the payment rates to be calculated at 34 percent from October 1, 2005 through September 30, 2007. Previously, the payment rate for September, 2007 was set at zero.

According to Dianne Sneed, program technician for MILCX, payments may be made to dairy operations when the Boston Class I milk price under the applicable Federal milk marketing order is below $16.94 per hundredweight.

‘FSA will not issue payments to dairy operations during the months the Boston Class I milk prices equals or exceeds the $16.94 per hundredweight price,’ she said.

Producers who are currently participating in the MILCX program may change their production start month to September 2007 if they so desire by completing form CCC-580M. Producers in dairy operations are also required to notify their local FSA office immediately of any changes that potentially affect the terms, conditions, or participants under the MILCX program. ‘Changes, such as the starting month to receive payments, death of a producer on the contract, new member joining the operation, a member exiting the operation, or transfer of share by sale or other transfer actions should be reported to Farm Service Agency as soon as these changes occur’ said Sneed.

For additional information regarding changes to the Milk Income Loss Contracts (MILC), contact the USDA service center located at 811 Faulkner Springs Road.