CRM Mail Merge - break apart date for contract

CRM Mail Merge - break apart date for contract

I have a date stored in CRM for a vendor, which I need to break into separate fields in the contract. The field is called «Contacts.Contract Date» which appears as MM/DD/YYYY

I need it to appear on a line of the contract as: 

Effective this     <<DD>>    day of        <<MMMM>>       , 20     <<YY>>      (and retroactive to the first day of...

I tried creating a new date field with the formatting changed to DD, which seems to appear alright on the setup, but when merged it always shows the whole date. 

Is there a formula I should use instead? If I was writing this in excel, I would just use =text(«Contacts.Contract Date»,"DD") and be done, but I'm not sure how to do that here. 

Any advice or maybe direction to a resource that would help?
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