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Milk producers eligible for income loss credit pay

February 05, 2013

U.S. Department of Agriculture Farm Service Agency County Executive Director Colleen Cashell said beginning today USDA will issue payments to dairy farmers enrolled in the Milk Income Loss Contract program for the September 2012 milk marketings.

A farm bill extension provides for a continuation of the program through Sept. 30.

All dairy producers with MILC contracts are automatically extended to Sept. 30. Eligible producers, therefore, do not need to re-enroll in the program.

MILC operations with approved contracts will continue to receive monthly payments, if available. Dairy operations that are not enrolled will be able to enroll as soon as new forms become available. Contact the local FSA office to inquire about new enrollments.

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.  Originally when the farm bill expired, the September MILC payment calculated to zero, but there are changes in the calculation due to the extension. The payment rate for September  is now approximately 59 cents per hundredweight. The payment rate for October marketings is approximately two cents per hundredweight. The payment rate for November marketings is zero.

 Before any payments can be issued, including the October payment, dairy farmers must complete a new Average Adjusted Gross Income form for 2013. The new form, CCC-933 Average Adjusted Gross Income 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 can obtain and submit the form at the local USDA Service Center or online at www.fsa.usda.gov/ccc933. More information about the form is available by calling the Washington County FSA office at 301-797-0500, ext. 2.

Due to a limit on annual milk production pounds that can receive payment, dairy operations can select a production start month other than October.

Producers who want to select a production start month other than October for must visit the local FSA office between now and Feb. 28. During that period, any month can be chosen. After the relief period, stricter rules apply and past months cannot be chosen. 

FSA will provide producers with information on program requirements, updates and signups as the information becomes available.

For more information, contact the local FSA office at 1260 Maryland Avenue, suite 107, Hagerstown, or go to www.fsa.usda.gov.

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