USDA ups eligibility for milk income loss contract
The US Agriculture Department has increased the maximum milk output for eligible dairy producers who can sign up for the Milk Income Loss Contract Program that starts December 22 and will continue through Sept 30, 2012.
The 2008 Act adjusts the trigger price of US$6.94 cwt., depending on the extent to which feed costs increase. The feed cost adjustment takes effect when the monthly National Average Dairy Feed Ration Cost (calculated from the "entire month" prices published by the National Agricultural Statistics Service) is greater than US$7.35 per cwt. beginning Jan 1, 2008, through Aug 31, 2012. Calculations during that period will be made at 45 percent of the feed ration costs which exceeds US$7.35 per cwt.
During the signup application period, participating dairy operations must choose the month of the fiscal year to start receiving payments for eligible production.