Market Incentive Leadership for Kentucky (MILK) Program: 2017

The Market Incentive Leadership for Kentucky Program is a multi-year program focused on milk quality and management practices involving Dairy Herd Improvement Association (DHIA) production records. The revised MILK Program is effective as of April 1st 2017. The program does not replace or affect existing incentives paid by Marketing Agencies in Kentucky.

Criteria for Qualifying for KDDC MILK Program Incentive Premiums: $12,000 cap per farm per year

·  All producers must be enrolled in qualified production testing program (DHIA) and/or equivalent program including installed recording equipment. Non-DHIA producers must be able to validate production records are received and report percent of herd under 200,000 SCC to qualify. Testing must be done 6 times per year and at least once per quarter.

·  No Adulterated Milk for the Month

·  All producers must participate in their marketing organization’s Dairy Animal Care Program and validated by the marketing organization.

·  To receive up to $6,000 total per year in quality premiums for herd average, producers must have somatic cell counts of 300,000 or less and preliminary incubation counts of 20,000 or less. (See chart #1) Payments are provided based on a graduated scale.

·  To receive up to $6,000 total per year in quality premiums for individual cow performance producers must have a somatic cell count less than 200,000 by at least 65% of the individual cows. Payments are provided based on a graduated scale. (See chart #2)

·  Producers may qualify for quality incentive payments independent of each other.

Chart #1-Premiums are based on SCC– PIC Average for the month. (Max per producer is $6,000 per year)

Total Premium SCC PIC
$0.25/cwt < 200,000 < 20,000
$0.13/cwt 200,001 - 250,000 < 20,000
$0.08/cwt 250,001 - 300,000 < 20,000

Chart #2-SCC cell count by percentage of herd < 200,000 SCC. (Max per producer is $6,000 per year)

Total Premium % of cows SCC PIC
$0.25/cwt 85% 200,000 < 20,000
$0.13/cwt 75% < 200,000 < 20,000
$0.08/cwt 65% < 200,000 < 20,000

Incentive Premiums Earned on Monthly Basis – Paid Quarterly from the Marketing Agency

Milk Produced in month but picked up in following month will be distributed equally for each month

Failure to comply with the above requirements relinquishes the producer’s future participation in the MILK Program.

MAXIMUM PER ELIGIBLE FARM PER YEAR $12,000

KDDC Dairy Consultants Will Verify Producer Participation in Management Programs

Producers that have dropped out of the MILK Program and are re-entering the program must have no less than 6 tests in the previous 12 month period before they are eligible for any payment.

Producer Agreement

I have read and understand the qualifying standards to participate in the KDDC MILK Incentive Program. I agree to the requirements to participate in the KDDC MILK Incentive Program and will allow or provide access to lab reports and/or milk check stubs for verification of volume and quality of milk produced during the eligible period by KDDC Consultants.

My Producer #______My Division # ______Password ______

Permit Holder ______Marketing Agency ______

Phone Contact ______Email Address ______

Mailing Address:

______

______

______

DHIA Herd Code ______

DHIA RAC Code ______

KDDC Representative ______

Farmers Signature ______Date ______