USDA’s Milk Income Loss Contract program administered by county offices of the Farm Service Agency compensates dairy producers when domestic milk prices fall below a specific price.

In addition, a feed cost adjuster applies over the life of the program, which adjusts the support level upward depending on the cost feed rations. Due to recent higher expenses recognized in dairy feed rations, MILC payments are triggered for milk produced and commercially marketed in the U.S. during the month of March 2012.

FSA will disburse MILC payments to eligible dairies at the rate of $0.826 for the verifiable production pounds of milk produced by the dairy operation. This is an increase from February’s $0.3895 payment rate.

Producers must provide verifiable milk production evidence along with filing other required eligibility forms to their local county FSA offices before payment can be processed. Examples of verifiable production evidence can include cooperative association payment stubs, tank records or other milk handler records. New dairy producers can also apply for program payment benefits at any time until the Sept. 30 deadline.