Market Incentive Leadership for Kentucky
MILK Program Production and Business Records Requirement
In order for producers to receive premiums from the MILK Program they are required to utilize dairy production and financial business records. The purpose for this is to provide the information necessary to conduct an annual business performance analysis of their dairy operation.
The manual Analyzing Your Dairy Business by Bradley J. Hilty, Peter Tozer and Jeffrey Hyde, provides a detailed systematic approach to analyzing one’s dairy business by examining ten key performance indicators: five financial ratios and five herd performance indicators. As the authors state, “These indicators are comparable to the warning lights on the dashboard of a car. They can signal that something is wrong, but will provide little detail as to what the specific cause of the problems might be.” These records provide the “detail” needed to determine why a warning light is on.
Please take time to review the manual then ask yourself, “Is this something I need to be utilizing for my dairy business?” If the answer is YES, give KDDC a call. We are willing to help.
MILK Program - First Year Payout - $400,000
104 Producers across the state participated
The MILK Program is a two year program focused on milk quality, increased production and management practices involving Dairy Herd Improvement Association (DHIA) production records and the Kentucky Farm Business Management (KFBM) Program.
The program does not replace or affect existing incentives paid by Marketing Agencies in Kentucky.
MILK Program Qualifiers for receiving incentive payment ($0.50/cwt.) on all milk produced:
· Production
10% Increase, above 2006 Base
Calculated Monthly
· Quality
SCC < 400,000 - Average of all pickups for month
PIC < 20,000 Preliminary Incubation
Based on Member's Marketing Agency Standard
No Adulterated Milk for the Month
· Management Program Participation REQUIRED:
Production Records - DHIA
Financial Records - KFBM
Incentive Premiums Earned on Monthly Basis - Paid Quarterly in Separate Check
Milk Produced in month but picked up in following month will be distributed equally for each month
$10,000 MAXIMUM PER ELIGIBLE FARM PER YEAR
Contact Your KDDC Dairy Consultant to Sign Up