Milk Loss Assistance program signup begins

The five-week-long sign-up window just opened for USDA’s new Milk Loss Assistance program. 

Alan Bjerga with the National Milk Producers Federation says the disaster program is open to producers and some cooperatives that had milk dumped or removed from the market without compensation during 2020, 2021, and 2022 due to qualifying weather events, infrastructure losses, and impassible roads. “It’s an important program. It’s money that is too late in coming, but it is coming, and farmers should be looking to their FSA agent really fast.”

Bjerga says FSA’s formula for determining the Milk Loss Program payments considers the base period per cow average production, the number of days milk was dumped, and the milk price per hundredweight. “And it basically breaks down to 75% for most producers and 90% if you’re in a disadvantaged category.”

Bjerga says it’s important for producers to quickly contact the Farm Service Agency because the sign-up ends October 16th.

The National Milk Producers Federation says USDA’s calculation for determining payments is made using the base period per-cow average daily milk production multiplied by the number of milking cows in a claim period and the number of days milk was removed or dumped in a claim period divided by 100 and multiplying that figure by the price per hundredweight.  Adjusted Gross Income (AGI) limitations do not apply to MLP, however, there are payment limitations determined by the person’s or legal entity’s average adjusted gross farm income.   Producers need to contact the Farm Service Agency for specific information.

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