Enrollment recently began for two programs created by the farm bill.

The first is the Milk Income Loss Contract program. MILC enrollment will continue until Jan. 21. Enrollment can be completed after Jan. 22, but producers will only be able to select the enrollment month as the start month. Participating producers who enroll during the initial enrollment may select a prior month as the start month. MILC benefits are available to producers when the price of Boston Class I milk drops below 16.94/cwt.

The new MILC program is similar to the old MILC program with a few exceptions. A feed cost escalator index will be factored into the formula if feed prices rise significantly. Another change is that the total eligible production for each dairy operation for MILC is now 2.985 million pounds.

Large operations that will exceed the maximum eligible production will want to carefully select the start month for MILC. When producers enroll, they can determine if they want to provide production evidence or have the dairy provide the information direct to FSA. Producers who have further questions should contact the office.

The other program created is the Direct and Counter-cyclical Payment Program.

DCP is available on farms with a crop acreage base of more than 10 acres. The new Farm Bill provides producers on farms with DCP base acres that total 10 acres or less will not receive a direct, counter-cyclical, or average crop revenue election program payment, unless the farm is wholly owned by a socially disadvantaged or a limited resource farmer or rancher.

For this provision's purpose, a socially disadvantaged farmer is a person who is a member of a group whose members have been subjected to racial, ethnic or gender prejudice because of their identity as members of a group without regard to their individual qualities.

Status as a limited resource farmer or rancher is one who directly or indirectly had gross farm sales of no more than $100,000 in each of the previous two years (to be increased beginning in fiscal year 2004 to adjust for inflation using prices paid by Farmer Index as compiled by the National Agricultural Statistic Service) and has a total household income at or below the national poverty level for a family of four or less than 50 percent of county median household income in each of the previous years to be determined annually using Commerce Department data.

A limited resources farmer or rancher can be determined in an automated system using the Web site for USDA Limited Resource Farmer and the Rancher Online Self Determination Tool available at www.lrftool.sc.egov.usda.gov/tool.asp.

Luke Fritz is executive director of the Butler County Farm Service Agency.