In agriculture, spring traditionally brings the influx of a lot of operational bills. But for dairymen, its hitting unusually hard this year as their land rents, and seed and fertilizer bills stack up and a percentage of their revenue is being delayed because of government budget sequestration.
The Milk Income Loss (MILC) payments have been delayed during a time when a lot of money needs to be paid out by farmers, said National Farmers Legislative Coordinator Gene Paul.
Dairy farmers have been affected since the first part of the year, said Robert Froelich, a dairy farmer from Sullivan, Wis. There have been no payments since early this year; they owe us for Oct. 2012, and the first four months of this year. Producers are trying to buy feed and hay right now, and without the MILC payments, its putting real pressure on them. Its time to get the policy changed, and pay dairymen what they are owed, Froelich said.
MILC payments are triggered when the Boston Class 1 milk price falls below $16.94 per hundredweight, after adjustment for the cost of dairy feed rations. The MILC payment for February is forecasted at 52 cents, March, 76 cents; April, 67 cents; May, 37 cents, all per hundredweight.
We urge farmers to call their congressional representatives, as well as Ag Secretary Tom Vilsack, and ask them to speed these payments to producers, said Paul.
National Farmers is a price negotiation and risk management organization for the nations farmers and ranchers.
AMES, Iowa May 6, 2013 National Farmers
Dairy producers struggling due to MILC payment delay
Submitted by tim
on