2013 US Code
Title 7 - Agriculture
Chapter 113 - AGRICULTURAL COMMODITY SUPPORT PROGRAMS (§§ 8701 - 8793)
Subchapter IV - DAIRY (§§ 8771 - 8773)
Section 8773 - Milk income loss contract program
Publication Title | United States Code, 2012 Edition, Supplement 1, Title 7 - AGRICULTURE |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 7 - AGRICULTURE CHAPTER 113 - AGRICULTURAL COMMODITY SUPPORT PROGRAMS SUBCHAPTER IV - DAIRY Sec. 8773 - Milk income loss contract program |
Contains | section 8773 |
Date | 2013 |
Laws in Effect as of Date | January 16, 2014 |
Positive Law | No |
Disposition | standard |
Source Credit | 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. |
Statutes at Large References | 114 Stat. 1549A-50, 1549 122 Stat. 994, 1664 126 Stat. 2363 |
Public Law References | Public Law 106-387, Public Law 110-234, Public Law 110-246, Public Law 112-240 |
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In this section:
(1) Class I milkThe term "Class I milk" means milk (including milk components) classified as Class I milk under a Federal milk marketing order.
(2) Eligible productionThe term "eligible production" means milk produced by a producer in a participating State.
(3) Federal milk marketing orderThe term "Federal milk marketing order" means an order issued under section 608c of this title.
(4) Participating StateThe term "participating State" means each State.
(5) ProducerThe 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) PaymentsThe 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) AmountPayments 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, 45 percent; and
(C) for the period beginning September 1, 2013, and thereafter, 34 percent.
(d) Payment rate adjustment for feed prices (1) Initial adjustment authorityDuring 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 authorityFor any month beginning on or after September 1, 2013, 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) National average dairy feed ration costFor 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 generalSubject 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 generalThe 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, 2,985,000 pounds for each fiscal year; and
(iii) effective beginning September 1, 2013, 2,400,000 pounds per fiscal year.
(B) StandardsFor 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) ReconstitutionThe Secretary shall ensure that a producer does not reconstitute a dairy operation for the sole purpose of receiving additional payments under this section.
(f) PaymentsA 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) SignupThe Secretary shall offer to enter into contracts under this section 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.
(h) Duration of contract (1) In generalExcept 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 September 30, 2013.
(2) ViolationsIf 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.)
REFERENCES IN TEXTSection 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.
The date of enactment of this Act, referred to in subsec. (g), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008.
CODIFICATIONPub. 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.
AMENDMENTS2013—Pub. L. 112–240 substituted "2013" for "2012" wherever appearing.
EFFECTIVE DATE OF 2013 AMENDMENTAmendment 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.
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