Although dairy producers have enjoyed above average milk prices for the past year or so, due to the high cost of feed, dairy producers enrolled in the Milk Income Loss Contract (MILC) payment program will receive a payment for their February production. USDA announced the February payment rate of $0.3895043 per hundredweight.

This is the first time there has been a payment for MILC since April 2010.

The Butler/Beaver/Allegheny County service center has begun issuing the payments to producers that have provided production records and updated eligibility forms.

Milk prices have remained above the $16.94 base used in the MILC calculation, but the increase in feed prices has triggered payments because of the feed ration component.

MILC payments are triggered when the Boston Class I milk price falls below $16.94 per hundredweight, after adjustment for the cost of dairy feed rations. MILC payments are calculated each month using the latest milk price and feed cost.

Producers must meet the average adjusted gross income requirement and provide marketing data to the FSA office in order to qualify. Some producers have authorized their dairies to provide monthly production records to the county office, but it is up to the producer to ensure the records are on file and eligibility forms are current.

New dairy producers can apply for program benefits anytime through Sept. 30. Additional information about the program can be found at www.fsa.usda.gov/Internet/FSA_File/milc2011.pdf or by visiting your local FSA service center.

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