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10.084 DAIRY MARKET LOSS ASSISTANCE PROGRAM
FEDERAL AGENCY
FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
AUTHORIZATION
Public Law 105-277, 112 Stat. 2681; Public Law 106-78, 113 Stat. 1135; Public Law 106-387, 114 Stat. 1549; The Military Construction Appropriations and Emergency Hurricane Supplemental Appropriations Act of 2005, Public Law 108-324.
OBJECTIVES
The purpose of this program is to provide benefits to dairy operations under Public Law 105-277, 112 Stat. 2681; Sections 805 and 825 of Public Law 106-78; and section 805 of Public Law 106-387 only, in order to provide financial assistance to dairy operations in connection with normal milk production that is sold on the commercial market.
TYPES OF ASSISTANCE
Direct Payments with Unrestricted Use.
USES AND USE RESTRICTIONS
The dairy operation requesting benefits must certify with respect to the accuracy and truthfulness of the information provided in their application for benefits. All information provided is subject to verification and spot checks by CCC. Refusal to allow CCC or any other agency of the Department of Agriculture to verify any information provided will result in a determination of ineligibility. Data furnished by the applicant will be used to determine eligibility for program benefits. Furnishing the data is voluntary; however, without it program benefits will not be approved. Providing a false certification to the Government is punishable by imprisonment, fines and other penalties.
ELIGIBILITY REQUIREMENTS
Applicant Eligibility
(a) To be eligible to receive cash payments, a dairy operation must: (1) Have produced and marketed milk commercially in the United States anytime during the fourth quarter of 1998; (2) Indicate all milk commercially marketed by all persons in the dairy operation during calendar year 1997 and 1998 to establish the base period for determining the total pounds of milk that will be converted to hundredweight (cwt) used for payment; and (3) Apply for payments during the application period. (b) A dairy operation must submit a timely application and comply with all other terms and conditions of 7 CFR Part 1430 Subpart D and those that are otherwise contained in the application to be eligible for benefits. (c) To be eligible for the program under Pub. L. 108-324, dairy producers must have produced milk in the United States during the 2004 calendar year in a dairy operation located in a county declared a disaster by the President due to hurricanes in 2004.
Beneficiary Eligibility
Under DMLA-III, payments will be made to producers who were paid under DMLA-II as well as new dairy producers who began production in calendar year 2000. Under Pub. L. 108-324, payments will be made to producers who have recently suffered dairy production and milk spoilage losses due to hurricanes in 2004.

Credentials/Documentation
A request for benefits under this subpart must be submitted on a completed Form CCC 1040. The Form CCC 1040 should be submitted to the county FSA office serving the county where the dairy operation is located. All persons who share in the milk production of a dairy operation that marketed milk must certify on the same CCC 1040 in order to obtain the total milk production of the dairy operation before the application is complete.
APPLICATION AND AWARD PROCESS

Preapplication Coordination
None. This program is excluded from coverage under E.O. 12372.

Application Procedure
Dairy operations may obtain an application, Form CCC 1040 (Dairy Market Loss Assistance Program Payment Application), in person, by mail, by telephone, or by facsimile from any county FSA office. In addition, applicants may download a copy of the CCC 1040 at http://www.fsa.usda.gov/dafp/psd/.

Award Procedure
Payments under this subpart may be made to dairy operations only on the first 26,000 cwt of milk produced by them from cows in the United States actually marketed in the United States during the base period. Supplemental payments under Public Law 106-387 will be made available to dairy operations in connection with normal milk production that is sold on the commercial market. For supplemental payments made under this section, the payment rate shall be $0.6468 per cwt. For dairy operations that received a payment under sections 805 and 825 of Public Law 106-78 on less than 12 months production, an annual production level will be calculated by subtracting from the dairy operation's production level for the period of October 1, 1999 through September 30, 2000 the production level on which previous payments were received.
Deadlines
Applicants must apply for benefits during the sign-up period to be announced by the Deputy Administrator for Farm Programs. Eligible dairy producers can apply for program benefits anytime during this sign-up time frame. New announcements are posted on http://www.fsa.usda.gov/pas/.
Range of Approval/Disapproval Time
From 1 to 60 days.
Appeals
Any producer who is dissatisfied with a determination may request reconsideration or appeal of such determination under part 11 or 780 of 7 CFR part 1430.
Renewals
Not applicable.
ASSISTANCE CONSIDERATIONS
Formula and Matching Requirements
A payment rate will be determined after the conclusion of the application period, and shall be calculated by: (1) Converting whole pounds of milk to cwt; (2) Totaling the eligible cwt (not to exceed 26,000 cwt) of milk marketed commercially during the base period from all approved applications; and (3) Dividing the amount available for Dairy Market Loss Assistance Program by the total eligible cwt submitted and approved for payment. Each dairy operation payment will be calculated by multiplying the payment rate determined above by the dairy operation's eligible production. In the event that approval of all eligible applications would result in expenditures in excess of the amount available, CCC shall reduce the payment rate in such manner as CCC, in its sole discretion, finds fair and reasonable.