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 |
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| Year | Boston Class I | Payment | |
| Actual | Target | Rate | |
| FY 2009 | |||
| October '08 | 18.78 | 18.48 | 0.0000 |
| November | 20.58 | 18.10 | 0.0000 |
| December | 18.68 | 17.68 |
0.0000 |
| January '09 | 18.99 | 17.20 | 0.0000 |
| February | 15.12 | 17.20 |
0.9363 |
| March | 13.56 | 17.20 |
1.6375 |
| April | 13.85 | 17.37 |
1.5831 |
| May | 14.29 | 17.37 |
1.3827 |
| June | 14.81 | 17.53 |
1.2247 |
| July | 15.47 | 17.53 |
0.9239 |
| August | 16.05 | 17.68 |
0.7325 |
| September | 16.85 | 17.68 |
0.3754 |
| FY 2010 | |||
| October '09 | 17.30 |
17.89 | 0.2654 |
| November | 17.38 |
17.89 |
0.2291 |
| December | 17.39 |
17.90 |
0.2299 |
| January '10 | 17.30 |
18.08 |
0.3479 |
| February | 17.96 |
18.08 |
0.0548 |
| March | 19.22 | 18.08 |
0.0000 |
| April | 19.53 | 18.19 |
0.0000 |
| May | 19.70 |
18.19 |
0.0000 |
| June | 19.76 | 18.28 |
0.0000 |
| July | 19.95 |
18.28 |
0.0000 |
| August | 20.06 | 18.02 |
0.0000 |
| September | 20.10 | 18.02 |
0.0000 |
|
Projections based on futures as of 1/5/09 *Updated on a weekly basis |
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MILC target price adjusted for feed costs, per 2008 Farm Bill