Ag United News

USDA announces dairy payment details

USDA has announced how it is going to pay out that $290 million in direct assistance to dairy producers. This is part of that $350 million dairy relief package in the ag appropriations bill approved by Congress earlier this year.

Called the Dairy Economic Loss Assistance Payment (DELAP) Program, producers will receive a one-time direct payment based on milk produced and commercially marketed by their operation during the months of February through July 2009. Production during those months will be doubled to estimate a full year's production for the operation. Payments will be limited to 6 million pounds per dairy operation. A national per hundredweight payment rate will be determined, based upon estimated production and total pounds eligible; USDA projects the payment rate to be approximately 32-cents per hundredweight.

Dairy producers who have production records at the Farm Service Agency (FSA) from another FSA dairy program do not need to apply for DELAP; FSA will use existing production records to calculate their payment. Producers who have not provided production data to FSA have until January 19, 2010 to apply. As for those who went out of production during the year, Under Secretary of Agriculture Jim Miller says "They would be eligible if in fact they have production evidence for the period we have identified." Miller says USDA will start processing payments immediately and producers will start seeing checks "Over the next few days."

Any dairy producer with an annual average adjusted gross nonfarm income of more than $500,000 for calendar years 2006 through 2008 is not eligible for DELAP.

Wisconsin Congressman Steve Kagen, a member of the House Agriculture Committee says an 85-cow dairy should get around $5,000. "These payments will help eligible dairy producers stabilize their operations during these tough economic times."

For more information and eligibility requirements on the new DELAP program, please visit your local FSA county office or the FSA website.

Story from:  www.brownfieldagnews.com