§ 8773. Milk income loss contract program

(a) Definitions In this section:

(1) Class I milk

The term “Class I milk” means milk (including milk components) classified as Class I milk under a Federal milk marketing order.

(2) Eligible production

The term “eligible production” means milk produced by a producer in a participating State.

(3) Federal milk marketing order

The term “Federal milk marketing order” means an order issued under section 608c of this title.

(4) Participating State

The term “participating State” means each State.

(5) Producer The term “producer” means an individual or entity that directly or indirectly (as determined by the Secretary)—

(A) shares in the risk of producing milk; and

(B) makes contributions (including land, labor, management, equipment, or capital) to the dairy farming operation of the individual or entity that are at least commensurate with the share of the individual or entity of the proceeds of the operation.

(6) Termination date The term “termination date” means the earlier of the following:

(A) The date on which the Secretary certifies to Congress that the margin protection program required by section 9053 of this title is operational.

(B)September 1, 2014.

(b) Payments

The Secretary shall offer to enter into contracts with producers on a dairy farm located in a participating State under which the producers receive payments on eligible production.

(c) Amount Payments to a producer under this section shall be calculated by multiplying (as determined by the Secretary)—

(1) the payment quantity for the producer during the applicable month established under subsection (e);

(2) the amount equal to—

(A) $16.94 per hundredweight, as adjusted under subsection (d); less

(B) the Class I milk price per hundredweight in Boston under the applicable Federal milk marketing order; by

(3)

(A) for the period beginning October 1, 2007, and ending September 30, 2008, 34 percent;

(B) for the period beginning October 1, 2008, and ending August 31, 2013, and for the period beginning February 1, 2014, and ending on the termination date, 45 percent; and

(C) for the period beginning September 1, 2013, and ending January 31, 2014, 34 percent.

(d) Payment rate adjustment for feed prices

(1) Initial adjustment authority

During the period beginning on January 1, 2008, and ending on August 31, 2013, if the National Average Dairy Feed Ration Cost for a month during that period is greater than $7.35 per hundredweight, the amount specified in subsection (c)(2)(A) used to determine the payment rate for that month shall be increased by 45 percent of the percentage by which the National Average Dairy Feed Ration Cost exceeds $7.35 per hundredweight.

(2) Subsequent adjustment authority

During the period beginning on September 1, 2013, and ending on January 31, 2014, if the National Average Dairy Feed Ration Cost for the month is greater than $9.50 per hundredweight, the amount specified in subsection (c)(2)(A) used to determine the payment rate for that month shall be increased by 45 percent of the percentage by which the National Average Dairy Feed Ration Cost exceeds $9.50 per hundredweight.

(3) Final adjustment authority

During the period beginning on February 1, 2014, and ending on the termination date, if the National Average Dairy Feed Ration Cost for a month during that period is greater than $7.35 per hundredweight, the amount specified in subsection (c)(2)(A) used to determine the payment rate for that month shall be increased by 45 percent of the percentage by which the National Average Dairy Feed Ration Cost exceeds $7.35 per hundredweight.

(4) National average dairy feed ration cost

For each month, the Secretary shall calculate a National Average Dairy Feed Ration Cost per hundredweight using the same procedures (adjusted to a hundredweight basis) used to calculate the feed components of the estimated price of 16% Mixed Dairy Feed per pound noted on page 33 of the USDA March 2008 Agricultural Prices publication (including the data and factors noted in footnote 4).

(e) Payment quantity

(1) In general

Subject to paragraph (2), the payment quantity for a producer during the applicable month under this section shall be equal to the quantity of eligible production marketed by the producer during the month.

(2) Limitation

(A) In general The payment quantity for all producers on a single dairy operation for which the producers receive payments under subsection (b) shall not exceed—

(i) for the period beginning October 1, 2007, and ending September 30, 2008, 2,400,000 pounds;

(ii) for the period beginning October 1, 2008, and ending August 31, 2013, and for the period beginning February 1, 2014, and ending on the termination date, 2,985,000 pounds for each fiscal year; and

(iii) for the period beginning September 1, 2013, and ending January 31, 2014, 2,400,000 pounds per fiscal year.

(B) Standards

For purposes of determining whether producers are producers on separate dairy operations or a single dairy operation, the Secretary shall apply the same standards as were applied in implementing the dairy program under section 805 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001 (as enacted into law by Public Law 106–387; 114 Stat. 1549A–50).

(3) Reconstitution

The Secretary shall ensure that a producer does not reconstitute a dairy operation for the sole purpose of receiving additional payments under this section.

(f) Payments

A payment under a contract under this section shall be made on a monthly basis not later than 60 days after the last day of the month for which the payment is made.

(g) Signup

The Secretary shall offer to enter into contracts under this section until the termination date.

(h) Duration of contract

(1) In general

Except as provided in paragraph (2), any contract entered into by producers on a dairy farm under this section shall cover eligible production marketed by the producers on the dairy farm during the period starting with the first day of month the producers on the dairy farm enter into the contract and ending on the termination date.

(2) Violations If a producer violates the contract, the Secretary may—

(A) terminate the contract and allow the producer to retain any payments received under the contract; or

(B) allow the contract to remain in effect and require the producer to repay a portion of the payments received under the contract based on the severity of the violation.

(Pub. L. 110–234, title I, § 1506, May 22, 2008, 122 Stat. 994; Pub. L. 110–246, § 4(a), title I, § 1506, June 18, 2008, 122 Stat. 1664, 1723; Pub. L. 112–240, title VII, § 701(b)(2)(B), Jan. 2, 2013, 126 Stat. 2363; Pub. L. 113–79, title I, § 1422(a), Feb. 7, 2014, 128 Stat. 694.)

Prospective Amendment

Repeal of Section

For repeal of section by section 1422(b) of Pub. L. 113–79, see Effective Date of Repeal note set out below.

References In Text

References in Text

Section 805 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001, referred to in subsec. (e)(2)(B), is section 805 of Pub. L. 106–387, § 1(a) [title VIII], Oct. 28, 2000, 114 Stat. 1549, 1549A–50, which is not classified to the Code.

Codification

Codification

Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

Amendments

Amendments

2014—Subsec. (a)(6). Pub. L. 113–79, § 1422(a)(1), added par. (6).

Subsec. (c)(3)(B). Pub. L. 113–79, § 1422(a)(2)(A), inserted “and for the period beginning February 1, 2014, and ending on the termination date,” after “August 31, 2013,”.

Subsec. (c)(3)(C). Pub. L. 113–79, § 1422(a)(2)(B), substituted “and ending January 31, 2014,” for “and thereafter,”.

Subsec. (d)(2). Pub. L. 113–79, § 1422(a)(3)(A), substituted “During the period beginning on September 1, 2013, and ending on January 31, 2014,” for “For any month beginning on or after September 1, 2013,”.

Subsec. (d)(3), (4). Pub. L. 113–79, § 1422(a)(3)(B), (C), added par. (3) and redesignated former par. (3) as (4).

Subsec. (e)(2)(A)(ii). Pub. L. 113–79, § 1422(a)(4)(A), inserted “and for the period beginning February 1, 2014, and ending on the termination date,” after “August 31, 2013,”.

Subsec. (e)(2)(A)(iii). Pub. L. 113–79, § 1422(a)(4)(B), substituted “for the period beginning September 1, 2013, and ending January 31, 2014,” for “effective beginning September 1, 2013,”.

Subsec. (g). Pub. L. 113–79, § 1422(a)(5), substituted “until the termination date” for “during the period beginning on the date that is 90 days after the date of enactment of this Act and ending on September 30, 2013”.

Subsec. (h)(1). Pub. L. 113–79, § 1422(a)(6), substituted “the termination date” for “September 30, 2013”.

2013—Pub. L. 112–240 substituted “2013” for “2012” wherever appearing.

Effective Date

Effective Date of Repeal

Pub. L. 113–79, title I, § 1422(b), Feb. 7, 2014, 128 Stat. 695, provided that:

“(1)Repeal.—Effective on the termination date, section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is repealed.

“(2)Termination date defined.—In paragraph (1), the term ‘termination date’ means the earlier of the following:

“(A) The date on which the Secretary [of Agriculture] certifies to Congress that the margin protection program required by section 1403 [7 U.S.C. 9053] is operational.

“(B)September 1, 2014.”

Effective Date Of Amendment

Effective Date of 2013 Amendment

Amendment by Pub. L. 112–240 effective Sept. 30, 2012, see section 701(j) of Pub. L. 112–240, set out in a 1-Year Extension of Agricultural Programs note under section 8701 of this title.