INDIANAPOLIS, Ind. — Don Hunton, acting executive director of USDA’s Farm Service Agency (FSA) in Indiana, announced that because of low dairy prices across the country, producers participating in USDA’s Milk Income Loss Contract (MILC) program will soon begin to receive payments.

“As a result of low dairy prices, we will soon begin distributing MILC payments to ensure that dairy producers have the financial assistance they need. This action will also stimulate local economies,” said Hunton.

The USDA makes MILC payments on a monthly basis when the Boston Class I milk price falls below $16.94 per cwt. as adjusted for feed costs. The monthly Boston price, along with final MILC payment rates, are posted online at www.fsa.usda.gov/FSA

Beginning April 2, USDA expects to issue approximately $150 million to dairy producers for milk produced in February. The USDA’s Agricultural Marketing Service announced the Boston Class I price for the month of March on Feb. 20, and for the month of April, on March 20. In both instances, the Boston Class I price was below the MILC payment trigger price of $16.94 per cwt.

The USDA expects to issue MILC payments on milk produced in March in early May and MILC payments on milk produced in April in early June, after it has adjusted the MILC payment trigger price for feed costs and determined the final payment rate for those months. MILC payments may also be triggered in future months if the MILC payment trigger price is below $16.94 per cwt.

The FSA makes payments up to the maximum eligible pounds of milk produced and marketed by each operation per fiscal year. The annual maximum eligible limit per dairy operation is 2,985,000 pounds per fiscal year. For more information about the MILC program, visit your FSA county office or www.fsa.usda.gov