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