NMPF Addresses Producer Confusion about MILC Eligibility Regarding Adjusted Gross Income
July 8, 2009
NMPF Addresses Producer Confusion about MILC Eligibility Regarding Adjusted Gross Income
Some dairy producers were misinformed about their eligibility for the Milk Income Loss Contract (MILC) program due to concerns about their Adjusted Gross Income (AGI).
The MILC payments are limited to producers with non-farm AGI below $500,000. However, for the MILC program, there is no limit with respect to farm AGI.
Farm AGI was redefined last year to include many farm-related enterprises (http://www.fsa.usda.gov/Internet/FSA_File/agi2009.pdf).
A careful reading of the form CCC-926, the "Statement of Adjusted Gross Income", required for these payments makes this clear:
"For commodity, price support benefits, disaster assistance programs, and for the Milk Income Loss Compensation Program, if the person or legal entity has:
- "average adjusted gross non-farm income greater than $500,000, the person or legal entity is not eligible for payments and benefits from these programs.
- "average adjusted gross farm income greater than $750,000, the person or legal entity is not eligible for direct payments under the Direct and Countercyclical Program." This does not apply to the MILC payment.