Washington, April 2 - The U.S. Agriculture Department said on Wednesday it will make payments totaling $150 million to dairy farmers participating in the Milk Income Loss Contract subsidy program.
USDA makes MILC payments on a monthly basis when the Boston Class I milk price falls below $16.94 per hundredweight as adjusted for feed costs. USDA expects to issue approximately $150 million to dairy producers for milk produced in February beginning Wednesday.
The department said the MILC payment trigger for February has been adjusted to $17.33, yielding a MILC payment rate of $1.5132. Payments for February will be roughly $150 million.
MILC payments are allowed on up to 2.985 million lbs. of milk per farm a year, the equivalent of a 155-cow herd.
"Today, as a result of low dairy prices, we are distributing MILC payments to ensure that dairy producers have the financial assistance they need," Agriculture Secretary Tom Vilsack said in a statement.
USDA said it will issue payments on milk produced in March in early May and MILC payments on milk produced in April in early June. Other payments will be made as warranted.
The 2008 farm law modified the MILC payment rate and the amount of a farm's milk eligible for payment, depending on when the milk is produced.