Milk Income Loss Contract Program


To maintain and expand existing markets for dairy which are vital to the welfare of milk producers in the United States. Payments under this program will be limited to dairy operations that produced milk in the United States and commercially marketed milk during the period of October 1, 2007 through September 30, 2013.

General information about this opportunity
Last Known Status
Deleted 04/02/2020 (Archived.)
Program Number
Federal Agency/Office
Agency: Department of Agriculture
Office: Farm Service Agency
Type(s) of Assistance Offered
Program Accomplishments
Not Applicable.
Food, Conservaton and Energy Act of 2008, Title 1, Part E, Section 1506, Public Law 110-246, 7 U.S.C 7981-7982.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
To be eligible, dairy producers must: (1) have produced milk in the United States and commercially marketed the milk produced anytime during the period of October 1, 2007 through September 30, 2013; (2) enter into a MILC contract during the contract application period; (3) agree to all terms and conditions in the MILC contract and comply with instructions issued by the Commodity Credit Corporation; (4) provide proof of monthly milk production commercially marketed by all persons in the dairy operation during the contract period, to determine the total pounds of milk that will be converted to hundredweight (cwt.) used for payment; (5) submit timely production evidence according to Sec. 1430.209; (6) be actively engaged in the business of producing and marketing agricultural products at the time of signing the MIL contract; (7) certify compliance with highly erodible land and Wetland provisions; (8) be in compliance with average adjusted gross income limitations; and (9) comply with start month selection provisions.
Beneficiary Eligibility
Eligible dairy producers are those who, beginning October 1, 2007 through September 30, 2013: (1) commercially produce and market cow milk in the United States, or (2) produce milk in the United States and commercially market the milk outside the United States. In addition, dairy producers from a foreign country who are admitted to the United States and have a valid taxpayer identification number are eligible for MILC contract benefits.
Before MILC contract payments are issued, all persons involved in a single dairy operation must provide evidence of eligible marketing. Verifiable production evidence can include: (1) milk marketing payment stubs, (2) tank records, (3) milk handler records, (4) daily milk marketing, and (5) copies of any payments received as compensation from other sources. 2 CFR 200, Subpart E - Cost Principles applies to this program.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. To apply for the MILC program, dairy operation producers must submit form CCC-580, "Milk Income Loss Contract," to Farm Service Agency (FSA) county office where the dairy operation is located. The CCC-580 must show total pounds of all milk produced and marketed during each month for all persons receiving a share of the marketed milk. Monthly milk production may not be apportioned to circumvent the maximum payment quantity. All persons who share in the risk of a dairy operation's total production must certify information on the CCC-580. FSA will accept only one CCC-580 per operation. When applying for MILC, operators must also have on file: (1) form AD-1026, "Highly Erodible Land Conservation and Wetland Conservation Certification," used to certify understanding of the conservation compliance requirements under USDA programs; and (2) form SF-3881, "Direct Deposit Sign Up Form," used to sign up for the direct deposit of payments into the payee's account.
Award Procedure
The Price Support Division (PSD) in Washington DC is responsible for the implementation of the MILC program in county offices. They will manage the contracts and determine the eligibility of monthly payments for each contract.
Oct 01, 2007 to Sep 30, 2013 Please contact the program contact listed in the Information Contacts section below.
Approval/Disapproval Decision Time
From 1 to 60 days.
Any producer who is dissatisfied with a determination may request reconsideration or appeal of such determination under Part 11 or 780 of 7 CFR Part 1430.
Not Applicable.
How are proposals selected?
Not Applicable.
How may assistance be used?
Each fiscal year, eligible dairy operations can receive a monthly payment based on monthly milk marketing, up to a maximum of 2.4 million pounds per dairy operation, for fiscal year October 1, 2007 through September 30, 2008. Maximum eligible pounds increase to 2.985 million pounds from October 1, 2008 through August 31, 2013, except that the cap reduces back to 2.4 million pounds during the month of September, 2013. Dairy operations who make changes to their producer status or who reconstitute their farm operations on or after October 1, 2007 for the sole purpose of receiving additional payments will not be eligible for the benefits under the program implemented by this rule.
What are the requirements after being awarded this opportunity?
Not Applicable.
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. Recipients under this program are subject to audit by the Office of the Regional Inspector General, USDA.
Producers approved for benefits under this program must maintain accurate records and accounts in order to document that they meet all eligibility requirements specified herein, as may be requested by the Commodity Credit Corporation or the Farm Service Agency. Such records and accounts must be retained for 3 years after the date of payment to the dairy operation under this program. Destruction of the records 3 years after the date of payment shall be the risk of the party undertaking the destruction.
Other Assistance Considerations
Formula and Matching Requirements
Statutory Formula: Title 7, Chapter CFR, Part 1430, Subpart B, Public Law 110-246. Payments under this program may be made to dairy operations when the Boston Class 1 milk price is below $16.94 per cwt., after adjustment for the cost of dairy feed rations. No payments will be made to dairy operations for marketing during the months that the Boston Class 1 milk price exceeds $16.94.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
Except as provided in Sections 1430.205 and 1430.206, contracts entered into by producers in a dairy operation shall cover eligible production marketed by producers during the period beginning with the first day of the month producers enter into contract and ending on September 30, 2013. If a dairy goes out of business during the contracted period, the MILC program will be terminated immediately, except as applicable to earned payments. Method of awarding/releasing assistance: lump sum.
Who do I contact about this opportunity?
Regional or Local Office
None. Consult the local phone directory for location of the nearest county FSA office. If no listing, contact the appropriate State FSA office listed in the FSA section of Appendix IV of the Catalog, or on the Internet at
Headquarters Office
Danielle Cooke Stop 0512, 1400 Independence Ave SW, Washington, District of Columbia 20250-0512 Email: Phone: 202-720-1919 Fax: 202-690-3307
Website Address
Financial Information
Account Identification
(Direct Payments with Unrestricted Use) FY 14 $324,764; FY 15 est $0; and FY 16 est $0 - Program repealed by 2014 Farm Bill.
Range and Average of Financial Assistance
No Data Available.
Regulations, Guidelines and Literature
Program is announced through news media and in letters to agricultural producers in the county. Regulations published in the Federal Register, 7 CFR part 1430. MILC Fact Sheet may be located online at
Examples of Funded Projects
Not Applicable.


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