Milk producers will see some help from the government in the form of payments from the Milk Income Loss Contract Program beginning in February.
Signup began on Dec. 22 at FSA offices.
MILC payments now include a feed cost adjuster and the calculation of the payments was changed resulting in an increased payment by about a third.
The cap on eligible milk was raised from 2.4 million pounds to almost 3 million per year.
Producers with over a half million dollars in non-farm adjusted gross income will not be eligible for MILC payments, but there are no limits on farm income.
Due to the timing of the crash in milk prices and growing milk output, larger producers have the potential to cap out after just a few months so they will want to choose carefully which months they want to receive payments.
Farmers who sign up by the end of February can choose to receive payments beginning in February. For more information, contact your local FSA office.