7 U.S.C. § 7982 | National dairy market loss payments

(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

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

(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.

(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 (d);

(2)

the amount equal to—

(A)

$16.94 per hundredweight; less

(B)

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

(3)

(A)

September 30, 2005 during the period beginning on the first day of the month the producers on a dairy farm enter into a contract under this section and ending on , 45 percent; and

(B)

October 1, 2005September 30, 2007 during the period beginning on , and ending on , 34 percent.

(d)

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

Public Law 106–387 114 Stat. 1549The payment quantity for all producers on a single dairy operation during the months of the applicable fiscal year for which the producers receive payments under subsection (b) shall not exceed 2,400,000 pounds. 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 ; A–50).

(3)

Reconstitution

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

(e)

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.

(f)

Signup

May 13, 2002September 30, 2007The Secretary shall offer to enter into contracts under this section during the period beginning on the date that is 60 days after , and ending on .

(g)

Duration of contract

(1)

In general

September 30, 2007Except 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 .

(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. 107–171, title I, § 1502May 13, 2002116 Stat. 205 Pub. L. 109–171, title I, § 1101Feb. 8, 2006120 Stat. 4 Pub. L. 110–28, title IX, § 9006(a)May 25, 2007121 Stat. 217(, , ; , , ; , , .)

Editorial Notes

References in Text

section 805 of Pub. L. 106–387Oct. 28, 2000114 Stat. 1549Section 805 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001, referred to in subsec. (d)(2), is , § 1(a) [title VIII], , , 1549A–50, which is not classified to the Code.

Amendments

Pub. L. 110–28September 30, 2007August 31, 2007September 1, 20072007—Subsec. (c)(3). inserted “and” at end of subpar. (A), substituted “, 34 percent.” for “, 34 percent; and” in subpar. (B), and struck out subpar. (C), which read as follows: “during the period beginning on , 0 percent.”

Pub. L. 109–171, § 1101(a)2006—Subsec. (c)(3). , added par. (3) and struck out former par. (3) which read as follows: “45 percent.”

Pub. L. 109–171, § 1101(b)Subsec. (f). , substituted “2007” for “2005”.

Pub. L. 109–171, § 1101(b)Subsec. (g)(1). , (c)(1), struck out “and subsection (h) of this section” after “paragraph (2)” and substituted “2007” for “2005”.

Pub. L. 109–171, § 1101(c)(2)Subsec. (h). , struck out subsec. (h), which related to transition rule.