Dairy Indemnity Program
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.
General information about this opportunity
Last Known Status
Farm Service Agency, Department of Agriculture
Type(s) of Assistance Offered
D - Direct Payments With Unrestricted Use
Act of August 13, 1968, Public Law -90-484, 7 U.S.C. 450j-450l, Statute 82,750
Agriculture Improvement Act of 2018, Public Law 115-334
Who is eligible to apply/benefit from this assistance?
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.
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.
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.
What is the process for applying and being award this assistance?
Preapplication coordination is not applicable.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. 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.
Initial approval is made by the county FSA committee. Final approval is made by the Price Support Division in Washington, DC.
January 1, 2019 to December 31, 2023 Claims must be filed by December 31 following the fiscal year in which the loss has occurred.
Approval/Disapproval Decision Time
From 60 to 90 days. From 60 to 90 days.
Applicants may appeal to the county Farm Service Agency Committee and to the FSA, Department of Agriculture, Appeals and Litigation Group, 1400 Independence Avenue, SW., Washington, DC 20250-0570.
How are proposals selected?
How may assistance be used?
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.
What are the requirements after being awarded this opportunity?
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.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.
Matching requirements are not applicable to this assistance listing.
MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
Payment is made by Commodity Credit Corporation (CCC) check after claim approval. Method of awarding/releasing assistance: Lump.
Who do I contact about this opportunity?
Regional or Local Office
Consult the appropriate FSA State office where the property is located. For a list of FSA State offices with telephone numbers and addresses, information is available on the internet, visit FSA website at www.fsa.usda.gov to locate nearest office.
Douglas E. Kilgore
1400 Independence Avenue, SW
Washington, DC 20250-0512 USA
(Direct Payments with Unrestricted Use) FY 18$173,000.00; FY 19 est $3,439,646.00; FY 20 est $500,000.00; FY 17$224,334.00; FY 16$161,410.00; -
Range and Average of Financial Assistance
No Payment Limitation.
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.
Examples of Funded Projects