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USDA Announces Milk Income Loss Contract Program Payment Rate for February Production

Lexington, April 2, 2012—The Farm Service Agency (FSA) State Executive Director John W. McCauley announces the February payment rate for the Milk Income Loss Contract (MILC) program. The February MILC payment rate is $0.3895043 per hundredweight. This is the first time there has been a payment for MILC since April 2010.

“Dairy producers are affected by the market price for milk and the price of feed to sustain their herds,” said McCauley. “While milk prices have remained above the $16.94 base used in the MILC calculation, the increase in feed prices has triggered payments because of the feed ration component.”

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.

The 2008 Farm Bill authorized MILC through Sept. 30, 2012. Producers must meet the Average Adjusted Gross Income requirement and provide marketing data to the FSA County Office in order to qualify. New dairy producers can apply for program benefits anytime through Sept. 30, 2012, at local FSA offices.

Additional information about the MILC program can be found at, or by visiting a local FSA Service Center.

USDA is an equal opportunity provider, and employer. To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC 20250-9410, or call toll-free at (866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136 (Spanish Federal-relay). 


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