Time to review Milk Income Loss Contract Program
By Daniel Root
daniel.root@mn.usda.gov
Date Modified: 05/08/2012 9:59 AM
E-mail article | Print version
USDA's Milk Income Loss Contract Program is administered by the Farm Service Agency. It compensates dairy producers when domestic milk prices fall below a specified level. The 2008 Farm Bill authorized MILC through Sept. 30, 2012.
Eligible dairy producers are those who commercially produced and marketed cow milk in the United States from Oct. 1, 2007, through Sept. 30, 2012.
Dairy producers must be in compliance with Highly Erodible Land and Wetland conservation provisions. Dairy producers are subject to the Adjusted Gross Income limitation. If non-farm income exceeds $500,000 the dairy operation and the dairy producer are not eligible for MILC benefits.
FSA issues payments up to the maximum eligible pounds of milk produced and marketed by each operation per fiscal year. The annual maximum eligible pound limit per dairy operation per fiscal year 2012 is 2,985,000 pounds.
The dairy operation's selected production start-month must be designated on Form CCC-580, "Milk Income Loss Contract Program," and submitted to the FSA county office:
• On or before the 14th day of the month before the selected MILC production start-month, except as otherwise provided during the applicable sign-up phase
• Before the selected month's Boston Class I fluid price is announced to the public
• The dairy operation has the option to select the month in which the contract application is submitted as a production start month.
A dairy operation cannot select a MILC production start-month for any month that has already begun or ended. Or any month that milk was not produced by the dairy operation.
Dairy operations can change the start-month an unlimited number of times as long as the change is made:
• On or before the 14th day of the month prior to the MILC production start-month (unless that day falls on a weekend, then the date falls to the previous business day)
• Before payment is sought
• Before the original selected MILC production start-month has passed.
If the dairy operation never changes the selected start-month, the start-month will remain the same throughout the MILC contract's duration.
It is very important that dairy producers review their MILC contract or contact their local FSA office to determine if they need to change their production start month. If a dairy operation is estimated to exceed the maximum number of pounds they can get paid on, they will want to pay close attention to the prices to ensure they can earn their maximum payments.
If you have any questions in regards to your MILC contract, contact your local FSA Office.
Root is the FSA county executive director in Dodge County.