MILC Payments

The MILC program was renewed in the recent 2008 Farm Bill, with a provision that raises the MILC target price when dairy feed prices are high. The table below shows projections for MILC targets for the Boston Class I price, the Boston Class I price, and the MILC payment rate.  The graph shows the targets and projections for the Class I base price.  All are based on futures prices for milk, corn, and soybeans.

Under the renewed program, payments can be available for up to nearly 3 million pounds per year. The payment rate calculation was also returned to 45% of the difference between the Boston Class I price and the MILC target.

 

MILC Payment Rates and Projections
Year Boston Class I Payment
Actual Target Rate
       
FY 2008      
October '07 24.84  16.94  0.0000
November 24.70  16.94  0.0000
December 23.29  16.94  0.0000
January '08 24.22  17.31  0.0000
February 22.93  18.04  0.0000
March 19.95  18.39  0.0000
April 21.86  19.18  0.0000
May 19.87  19.59  0.0000
June 21.43  19.98  0.0000
July 24.03  19.87  0.0000
August 21.72  19.88  0.0000
September 20.90  19.56  0.0000
       
FY 2009      
October '08 18.78  17.31 0.0000
November 20.20  16.94 0.0000
December 19.56  16.94
 0.0000
January '09 18.88  16.94 0.0000
February 18.49  16.94
 0.0000
March 18.41  16.94
 0.0000
April 18.52  16.94
 0.0000
May 18.71  16.94
 0.0000
June 18.78  16.94
 0.0000
July 19.14  16.94
 0.0000
August 19.32  16.96
 0.0000
September 19.48  16.96
 0.0000
       
FY 2010      
October '09 19.55
 17.07 0.0000
November 19.50
 17.07
 0.0000
December 19.48
 17.07
 0.0000
January '10 19.47
 17.30
 0.0000
February 19.46
 17.31
 0.0000
March 19.54 17.31
 0.0000
April 19.56 17.39
 0.0000
May 19.71
 17.39
 0.0000
June 19.76 17.47
 0.0000
July 19.95
 17.47
 0.0000
August 20.06 17.13
 0.0000
September 20.42 17.13
 0.0000
       

Projections based on futures as of 10/16/08 

 

 

 

 

 

 

 

 

 

 

 

 

MILC target price adjusted for feed costs, per 2008 Farm Bill