The United States Department of Agriculture has begun issuing payments to dairy farmers enrolled in the Milk Income Loss Contract program for the September 2012 marketings, announces Juan Garcia, USDA Farm Service Agency administrator.
The American Taxpayer Relief Act of 2012 extended the authorization of the Food, Conservation, and Energy Act of 2008 (the 2008 Farm Bill) through 2013 for many programs administered by FSA, including MILC. The 2008 Farm Bill 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.
All dairy producers’ MILC contracts are automatically extended to Sept. 30. MILC operations with approved contracts will continue to receive monthly payments if available.
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 AGI Certification and Consent to Disclosure of Tax Information, 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 may obtain the form at their local USDA Service Center or at www.fsa.usda.gov/ccc933.
Producers who want to select a production start month other than October 2012 must visit their local FSA office by Feb. 28.