Milk prices too high for MILC payments

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Current analysis by the National Milk Producers Federation indicates that there won’t be any Milk Income Loss Contract payments during the rest of the fiscal year, which ends Sept. 30.

The NMPF forecast is based on current futures market price forecasts as of Jan. 6.  Payments only kick in when the Class I base price falls below $13.69 per hundredweight.

The program is scheduled to expire at the end of September. Although Congress will most likely consider an extension of the program current budget restraints could make it an uphill battle.

The table below shows NMPF’s Class I price projections and corresponding MILC payment rate.

MILC Payment Rate Projections

Year

Class I

Payment

Base Price

Rate

FY 2005

 

 

January

$16.65 

0.000

February*

$14.31 

0.000

March*

$14.13 

0.000

April*

$14.00 

0.000

May*

$13.88 

0.000

June*

$13.74 

0.000

July*

$13.72 

0.000

August*

$13.82 

0.000

September*

$13.99 

0.000

*Projected from futures as of Jan. 6, 2005

NMPF

For more news from dairyherd.com on MILC, click here.



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