USDA Updates Milk Income Loss Contract Program

2/2/2013 7:00 AM

WASHINGTON — The USDA has announced that beginning Feb. 5, the department will issue payments to dairy farmers enrolled in the Milk Income Loss Contract, program or MILC, for the September 2012 marketings.

The payments were authorized in the extension of the 2008 Farm Bill that Congress passed late last year as part of the American Taxpayer Relief Act. The extension provides for a continuation of the MILC program through Sept. 30.

MILC payments are triggered when the Boston Class I milk price falls below $16.94 per hundredweight, after adjustment for the cost of dairy feed rations. MILC payments are calculated each month using the latest milk price and feed cost.

As announced by FSA on Jan. 22, all dairy producers’ MILC contracts are automatically extended to Sept. 30 and eligible producers do not need to re-enroll.

MILC operations with approved contracts will continue to receive monthly payments, if available. The payment rate is about 59 cents per hundredweight for September 2012, 2 cents for October and zero for November.

Before the October MILC payment can be issued, dairy farmers must complete a new Average Adjusted Gross Income form for 2013. The new form, CCC-933, must be completed by producers before they can receive payments for a variety of programs administered by FSA and USDA’s Natural Resources Conservation Service.

Producers can obtain CCC-933 at their local USDA service center or online at

Producers who want to select a production start month other than October 2012 must visit their local FSA office between Feb. 1 and Feb. 28.

For more information on MILC, contact a local FSA county office or visit the FSA website at

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