MILC Payments Require Production Record Updates
‘Computer Glitch ’ Won’t Allow Transition Payments For Partial Records
DAVE LEFEVER
Lancaster Farming Staff
LANCASTER (Lancaster Co.)
Dairy farmers who apply for
federal Milk Income Loss Con
tract (MILC) payments must
submit full production records
from the period of December
2001 through September 2002 in
order to receive their first pay
ment, according to Kathy Heil of
the Lancaster County Farm Serv
ice Agency (FSA).
Since Oct. 18, the FSA has
been authorized under the Farm
Bill to send payments to dairy
farmers for periods when the
Boston Class I milk price is less
than $16.95 per hundredweight.
Heil said that farmers who
submitted applications that do
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not include production records
through September cannot be
paid until the records are updat
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For example, farmers who ap
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mitting production records
through September will not be
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Previously, FSA officials
thought payments would be paid
to farmers for a shorter transition
period. On Oct. 18, however, they
discovered that the administra
tive setup would not authorize
payments until production re
cords are submitted for the entire
period of December 2001 through
this September.
“It’s a computer glitch,” Heil
said, explaining the misunder
standing.
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As of this Wednesday, about
600 dairy producers from Lan
caster County have applied for
payment. About 270 of those
have submitted complete records
for the transition period and have
received payment, Heil said.
Producers who have not in
cluded the last several months of
production evidence with their
application can fax, mail, or de
liver the evidence to the Farm
Service Agency, 1383 Arcadia
Road, Room 2, Lancaster, PA
17601, fax (717) 393-7289.
Producers in other counties
should report to their local FSA
office.
To date, about $3 million has
been paid to Lancaster County
dairy farmers under the new pro
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Lancaster Farming, Saturday, November 9, 2002-A4l
A typical small dairy of 50
cows in Lancaster County is eligi
ble for payments of roughly
$lO,OOO for a 12-month period
based on Class I milk prices since
last December, Heil said. How
ever, declining prices in the last
several months will likely make
that rate increase for future pay
ments.
While only about a third of
Lancaster County producers
have applied so far, Heil said she
believes many of them, especially
the Amish, are waiting for their
production records and applica
tions to be submitted through
their milk buying companies.
“We still haven’t got any regu
lations on (farmers) receiving
payments through dairy compa
nies,” Heil said.
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The last time federal payments
were available to dairy farmers
through the Dairy Market Loss
Assistance program in 2000-2001
Heil said about 800 Lancaster
County producers applied for the
funds.
Heil expects more than 800
farmers to eventually apply for
the MILC program “because it
involves more money,” she said.
For MILC payments beginning
after the transition payment,
farmers will have a choice of re
ceiving the funds on a monthly or
quarterly basis, as long as they
continue to submit production re
cords on time.
Heil also noted that payments
for fiscal year 2003 which
started Oct. 1 will not begin
until January of 2003, at the
earliest.