OT/Milk Income Loss Contract

rrlund · Feb 17, 2009

Does anybody know how much the MILC payment is right now? I collected it for a year or so before I sold the cows in the fall of 2003. If memory serves me right,it kicked in at $14.38 at that time,so that's what the price was supported at. I believe there was a 2 million pound annual limit at the time. Just wondered what the details were now with all the hype over low prices.

Anonymous-0 · Feb 17, 2009

They broke all of the 40-50 cow dairies around here then the dutch came in and put up 2000 head dairies and saturated the market, now they're crying, let them go broke and go back to the netherlands. We should have took care of the smaller ones that were raising families, putting kids in schools and supporting local business, by this I mean 10 smaller farms bought more supplies to keep smaller tractors, buildings ect. maintained. ps- my Dad dairied until 99 and I saw no economic future in continuing milking at that time.

BLinWMI · Feb 17, 2009

I found out the other day, how to be making it today selling milk. The Amish farm up in Fremont that my cows are at ship organic milk thru MMPA. Their last pay price was just a hair over 33.00 cwt. They have lost some production since going organic last september, they are at about 43 pounds a day. The equivalent of shipping 86 pounds a day at a 16.50 pay price. They raise all the inputs themselves so buying 9.50 a bushel corn doesn't affect them. They aren't hurting to bad right now.

john in la · Feb 17, 2009

I do not think they have a set MILC anymore. It has a feed surcharge added into it to ajust for high feed cost so the figure could change month to month.

john in la · Feb 17, 2009

look at the link
Milk Income Loss Contract Program

Cas · Feb 17, 2009

We milked 135 cow until August,1986. The federal buy out of that year was taken and not regetted
by us. The price that month was $13.35. Our decision was made when we went to the meetings
offered by what is now FSA. The tone of the meetings was that if you wanted to continue plan
on milking 1000+ cows. Also, be prepared for violent swings in milk prices.

We had no debt and our equipment needed updating. Labor was starting to be a major
problem. The government (FSA) made the decision
easy. Get out fast. Very few farmers left are
capitalized enough to weather many storms.

rrlund · Feb 17, 2009

OK,I checked that out. I ran a little scenerio at $12 cwt for Boston Class I. It kicks in when the Boston Class I drops below $16.94,then you take 45% of the difference. So a $12 BC 1, would mean a $2.22 cwt payment deposited directly in your bank account.

Anonymous-0 · Feb 17, 2009

The figure I've heard is $1.36 per cwt for February milk, and don't expect to receive it before May. I have a small dairy and feed a mostly forage diet, so I ship very little milk. I dont even plan on applying for it. I always thought it was a stupid program, the taxpayer is paying ther processors bill, and they are still getting the money from the consumer. Maybe I'm being foolish but the whole method of pricing of milk is flawed and I'm mad. No reason the Class 1 price cant be set at a level the farmer and consumer can both live with. Then let manufacturing milk follow the world price and pay a blend. Just my 2 cents, well, better make it just 1 cent.

Kentb of SWMO · Feb 17, 2009

Yes, the bid dairys are joke. The son of a dairyman took over from his dad. Build a BIG loffing barn and a three pool lagoon system for the cows waste. Went broke three years ago lossing ALL of his Dads land except the house and five acres for Dad to live on. My Father hauled water for the family while they were doing the construction. My Father finally got paid his hauling bill before they went broke. I wnet with my Dad during one load of water and ask "What were they doing, getting bigger wehre they can go broke quicker" My Dad's ONLY comment was a small giggle.
I can remember when almost every farm here in Southwest Missouri milked cows. NOT anymore.

Kent

dieseldoc · Feb 17, 2009

I milk around 100 cows. My wife an I do all the work ourselves and also farm 500 acres of crop. 16- 18 hr days seven days a week and if prices dont go back up soon we will end up broke. we may also expand to 200 cows while the cow prices are cheap. we are trying everything we know how to keep our heads above water and if that means milking more cows we will do it.some people have to expand just to make it anymore and it is never funny when someone goes broke trying to make an honest living. so i guess if we go unde you will have someone else to laugh at.

rrlund · Feb 18, 2009

I don't think anybody's laughing. I just wondered what the MILC payment was right now?

Anonymous-0 · Feb 18, 2009

I'm not laughing at you either dieseldoc. I want to keep my neighbors, large and small. (and 100 cows is small by todays standards, but large compared to me).If others go out the equipment dealers will become fewer and the milk trucks may not stop in the area. I think we need each other. The lack of unity, big vs small, is part of why we cant get a fair pricing system.

dieseldoc · Feb 18, 2009

I am not really saying you are laughing. I just try not to be so stressed out about the milk prices. And if I have to get bigger to pay my bills I will do it and if I still go broke someone can look at what I did and say it was a dumb idea even though they may have no idea what the reasons were.

OT/Milk Income Loss Contract

rrlund

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Anonymous-0

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BLinWMI

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john in la

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john in la

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Cas

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rrlund

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Anonymous-0

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Kentb of SWMO

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dieseldoc

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rrlund

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Anonymous-0

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dieseldoc

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