The Milk Income Loss Contract (MILC) program, initiated in December 2001, is coming under more scrutiny as Federal budget deficits climb and as dairy herd size continues to grow, making fewer herds eligible for a smaller share of their annual milk production.

USDA reported that milk production jumped 1.7% in April in the 23 major dairy producing states over April 2009. Estimated milk production for the entire country was up 1.5%.

Dairy economists from the Universities of Missouri (UM) and Wisconsin have prepared a Policy Brief analyzing the pros and cons of such a national dairy gross margin program. In essence, LGM-Dairy pays an insurance indemnity equal to the difference, if positive, between the gross margin expected at producer sign-up and the gross margin actually experienced.

Cooperatives Working Together (CWT) accepted one bid from Darigold and one bid from Land O’Lakes for export assistance on a total of 108.4 metric tons (239,000 pounds) of Cheddar and Monterey Jack cheese to the Middle East and Asia.