|Missouri Dairy Business Update|
|Volume 2, Number 8|
Signup at local Farm Service Agency offices began August 13th for the USDA Milk Income Loss Contract (MILC) payments. The September payment has already been announced, at $1.45/cwt. For a complete list of payments by month, check the Monthly Dairy Market Loss Payment button on homepage of this newsletter. For a complete site, with the FSA signup forms, explanations, and calculators check out the University of Wisconsin's site at: http://www.aae.wisc.edu/future/
The chart below show the announced prices for Missouri dairy producers in northern and southern Missouri since December 2001. Also included in the chart is a graph of prices in both regions with the MILC payments included.
The MILC payments are capped at 2.4 million pounds of production per U.S. fiscal year. In Missouri, it is estimated that about 5% of our dairy operations will not be able to receive MILC payments on 100% of their milk production because they exceed the 2.4 million pound production cap. USDA final rules on the MILC program will be announced in September. First checks to producers are expected the final week of October 2002. The program will run through September 2005.