The U.S. Department of Agriculture reminds dairy producers to sign up for the extended Milk Income Loss Contract (MILC) program. The sign up period runs from now through May 17, 2006.

The Deficit Reduction Act of 2005 (the Act), amended the MILC program established by the Farm Security and Rural Investment Act of 2002 (the 2002 Farm Bill), which authorized the original MILC program through Sept. 30, 2005. From Oct. 1, 2005 through Aug. 31, 2007, a dairy operation's monthly payment will equal the milk quantity sold in that month multiplied by 34 percent of the difference between $16.94 per hundredweight and that month's domestic Class I milk price. The 2002 Farm Bill originally set the payment rate factor at 45 percent.

Program payments will begin following the sign-up. Participating dairy operations must select the month they want to start receiving payments for eligible production. Producers may retroactively select any month beginning December 2005 through May 2006 for sign-up on, or before, May 17, 2006. Sign-up will continue after May 17, 2006, throughout the duration of the program. However, after May 17, 2006, producers will not have the option to select a retroactive month for payment for which the payment rate has already been announced. USDA's Commodity Credit Corporation (CCC) will make payments on an operation-byoperation basis, up to a maximum of 2.4 million pounds of milk produced and marketed by the dairy operation per fiscal year.

Eligible dairy producers are those who commercially produce milk in the United States. To receive program approval, producers must enter into a contract with CCC to provide monthly marketing data.

Dairy producers can apply for MILC at local FSA offices and online at: www.fsa.usda.gov/dafp/psd/ More information on MILC is available at local FSA offices and in the FSA MILC fact sheet located online at: http://www.fsa.usda.gov/pas/publications/ facts/html/milc06. htm.