Although it is not law until passed by both Houses of Congress and signed by the president, budget reconciliation negotiators agreed to include an extension of the MILC program through September 30, 2007. The House passed the bill and headed home until it reconvenes January 30, 2006.

The program pays farmers when the Boston Class 1 price falls below $16.94 on a maximum of 2.4 million pounds produced in a year. However, the extension takes 34% of the difference instead of 45% of the difference as in the program that expired September 30 of this year.

Estimated MILC payments for 2006, based upon Milk Futures as of 12/19/2005 are available on the Milk Price page of this newsletter.

Actual MILC Payments are at http://www.fmmone.com/Northeast_Order_Prices/MILC%20calculator/DMLP.htm.