| Missouri Dairy Business
|Volume 2, Number 5
National Dairy Market Loss Payments Program
Farm Security and Rural Investment Act of 2002
- A monthly payment will be made to dairy producers whenever the
class I price of milk in Boston is below $16.94.
- Boston Class I prices are available at:
- The payment will be 45% of the difference between $16.94 and the
actual Boston Class I price.
- The payment will only be paid on up to 2.4 million pounds of milk
produced per dairy operation.
- The program is retroactive to December 2001.
- Expect the first lump sum retroactive payment in early fall, then
- FAPRI estimates that over the life of the program the payments
will average $.89/cwt, but the added milk from dairymen will drop
Class III prices by $0.17/cwt and Class IV prices by $0.28/cwt. The
net effect for Missouri producers over the life of the program will be
an increase of $0.57/cwt for eligible milk production.
Example: Milking approximately 65 head per month
Boston Class I prices are available at:
June 2002 Boston Class I Price||- 14.28|
Multiplied by .45||X .45|
= Market Loss Payment||1.20/cwt|
For the dairyman shipping 100,000 pounds, the monthly check would be $1.20 X 1000 = $1,200.00
AgEBB | Dairy Focus Team
| Dairy Publications