The Milk Income Loss Contract program jumped another hurdle yesterday when it gained House approval for its renewal. The MILC extension is part of the budget deficit reduction bill that the House passed on a vote of 216 to 214 on Wednesday. The Senate approved the budget-cutting bill in December.
The next stop will be the president’s desk for his signature.
The renewed MILC program is retroactive back to October 1, 2005 and contains a scaled back payment level. Instead of receiving 45 percent of the difference between the target price of $16.94 and the current Boston Class I price, producers will now receive 34 percent of the difference. (The Boston Class I price is the Class I mover + $3.25 differential.) The payment cap is still set on the first 2.4 million pounds of milk. The revised MILC program is estimated to cost about $1 billion.
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