Milk Income Loss Contracts Payments

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Milk Income Loss Contracts Payments

Commonly called MILC payments. In the United States, a program to pay dairy farmers when the price of milk falls below a certain level. The program is intended to keep dairy farmers in business during difficult times. This in turn keeps the supply of milk from radically declining, which can cause large price fluctuations. The U.S. Department of Agriculture administers the program.
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However, although MILC payments will continue through June 30, 2014, at a 45 percent payment rate.
The MILC program was slated to expire on September 30, 2012 but was later extended retroactively by the American Taxpayer Relief Act of 2012, which authorizes MILC payments through September 30, 2013.
50 margin trigger coverage is over $104,000 for a 1,000-cow dairy, while total expected MILC payments are only about $9,000.
It also objected that the bill would increase the payment rate for the Milk Income Loss Contract (MILC) program and increase the quantity of milk that is eligible to receive MILC payments.
It also raises the annual milk volume qualifying for MILC payments, from 2.
109-171) extended MILC program authority for two years, through September 30, 2007, but prohibits any MILC payments beyond August 31, 2007.
To make matters worse, MILC payments to farmers are highest when the price of milk is lowest, preventing consumers from reaping the full benefit of cheaper groceries when they are available.