USDA released a February production marketing payment rate for dairy producers enrolled in the Milk Income Loss Contract (MILC) program of $0.3895 per hundredweight. This is the first time there has been a payment earned under the MILC program since April 2010.

Dairy producers are affected by the market price for milk and the price of feed to sustain their herds. While milk prices have remained above the $16.94 base used in the MILC earning calculation, the increase in feed prices has triggered payments because of the feed ration component.

The 2008 Farm Bill authorized MILC through Sept. 30, 2012. Producers must provide verifiable milk production evidence along with filing other required eligibility forms to their local county FSA offices before a payment can be processed for a dairy. New dairy producers can apply for program benefits anytime until the September deadline.