Agricultural
Act of 1970, Title II, Section 204, Public Law 90-484, as amended,
7 U.S.C. 450j; Public Law 91-524; Agriculture and Consumer Protection
Act of 1973, as amended, Public Law 93-86; Food and Agriculture
Act of 1977, as amended, Public Law 95-113; Food and Agriculture
Act of 1981, Public Law 97-98; Food Security Act of 1985, as amended,
Title I, Public Law 99-198; Public Laws 99-190 and 99-349; Food,
Agriculture, Conservation, and Trade Act of 1990, Public Law 101-624,
as amended; Public Laws 104-37, 104-180, 105-86, 105-277, 106-78
and 106-387.
To
protect dairy farmers and manufacturers of dairy products who through
no fault of their own, are directed to remove their milk or dairy
products from commercial markets because of contamination from pesticides
which have been approved for use by the Federal government. Dairy
farmers can also be indemnified because of contamination with chemicals
or toxic substances, nuclear radiation or fallout.
TYPES
OF ASSISTANCE:
Direct Payments with Unrestricted Use. Place Cursor Here for Definition
USES
AND USE RESTRICTIONS:
Fair
market value for the milk is paid to the dairy farmer who is unable
to market because of any of the violating substances, and the fair
market value of the dairy product is paid to the manufacturer who
is unable to market because of pesticide residue. No payment may
be made to any dairy farmer or any manufacturer whose milk or dairy
product was removed from the market as a result of his negligence
or his willful failure to follow procedures prescribed by the Federal
government.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: Dairy farmers whose milk has been
removed from the market by a public agency because of residue of
any violating substance in such milk. Manufacturers of dairy products
whose product has been removed from the market by a public agency
because of pesticide residue in such product. This program is also
available in Puerto Rico.
Beneficiary
Eligibility: Dairy farmers whose milk has
been removed from the market by a public agency because of residue
of any violating substance in such milk. Manufacturers of dairy
products whose product has been removed from the market by a public
agency because of pesticide residue in such product. This program
is available in Puerto Rico.
Credentials/Documentation:
In the case of a dairy farmer, the notice removing the milk from
the market along with a record of past marketing records for milk
to determine the quantity and value of the milk not marketed,
the violating substance involved and the uses of such violating
substances during the previous 24 months. In the case of the manufacturer
of dairy products, the notice removing the product from the market
and sufficient data to determine the value of the product. This
program is excluded from coverage under OMB Circular No. A-87.
Pre-application
Coordination: None. This program is excluded
from coverage under OMB Circular No. A-102 and E.O. 12372.
Application
Procedure: Producers must file an application
for payment on Form FSA-373 with the local county FSA office.
Manufacturers must file information on the cause and amount of
their loss with the local county FSA office. This program is excluded
from coverage under OMB Circular Nos. A-102 and A-110.
Award
Procedure: Initial approval is made by the
county FSA committee. Final approval is made by the Price Support
Division in Washington, DC.
Deadlines:
Claims must be filed by December 31 following the fiscal year
in which the loss is incurred.
Range
of Approval/Disapproval Time: From 60 to 90
days.
Appeals:
Applicants may appeal to the county Farm Service Agency Committee
and to the FSA, U.S. Department of Agriculture, Appeals and Litigation
Group, 1400 Independence Avenue, SW., Washington, DC 20250-0570.
Renewals:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: Not applicable.
Length
and Time Phasing of Assistance: Payment is
made by Commodity Credit Corporation (CCC) check after claim approval.
POST
ASSISTANCE REQUIREMENTS:
Reports:
None.
Audits:
Recipients are subject to audit by Office of Inspector General,
USDA.
Records:
The dairy farmer and the manufacturer of dairy products must keep
any records in applying for a payment for 3 years following the
year in which an application for payment was filed.
FINANCIAL
INFORMATION:
Account
Identification: 12-3314-0-1-351.
Obligations:
(Direct payments) FY 01 $36,407; FY 02 est $450,000; and FY 03
est $450,000.
Range
and Average of Financial Assistance:
$88 to $95,000. Average: $40,000.
During fiscal year 2001, seven dairy farmers in four States filed
and received payment for claims totaling $36,407 under the Dairy
Indemnity Program. These farmers' claims resulted from losses incurred
due mostly to aflatoxin contamination discovered in their cattle's
milk. In 2002, an estimated $450,000 will be paid to producers and
manufacturers who file claims under the program. It is also estimated
that $450,000 in payments will be made to producers who will suffer
losses due to various contaminants discovered in their cattle's
milk during fiscal year 2003.
REGULATIONS,
GUIDELINES, AND LITERATURE:
Program regulations were published in the Federal Register, 7 CFR,
760, and announced through the news media, Handbook 3-LD, Circulars
and regulations issued by FSA.
INFORMATION
CONTACTS:
Regional
or Local Office: Consult the local telephone
directory for location of the county FSA office. If no listing,
contact the appropriate State FSA office listed under the Farm Service
Agency section of Appendix IV of the Catalog.
Headquarters
Office: Department of Agriculture, Farm Service
Agency, 1400 Independence Avenue, SW., Washington, DC 20250-0512.
Telephone: (202) 720-7641.
