Last week, the U.S. Department of Agriculture (USDA) officially announced the terms for the Milk Income Loss Contract (MILC) program extension, as included in the fiscal cliff bill passed on Jan. 1. The payment rate for September 2012 milk production is $0.59 per hundredweight, the last month in Fiscal Year 2012. The payment rate for October 2012 is approximately $0.02 per hundredweight, and there is no payment for November 2012.
Before the October MILC payment can be issued, dairy farmers must complete a new Average Adjusted Gross Income (AGI) form for 2013. The new form, CCC-933 Average Adjusted Gross Income (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. The AGI limit for dairy is $500,000 for off-farm income. There is no AGI limit for on-farm income.
Dairy operations may select a production start month in FY 2013 other than October 2012. If they do, they must visit their local FSA office between February 1 and February 28, 2013, also known as a relief period.