Milk Loss Program

 

The Milk Loss program will indemnify eligible dairy operations for milk that was dumped or removed without compensation from the commercial milk market due to qualifying weather events in 2020, 2021, and 2022 calendar years due to drought, wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze, including a polar vortex, and smoke exposure. Milk Loss assists Americas farmers and ranchers recover from these storms and disasters.

General information about this opportunity
Last Known Status
Active
Program Number
10.965
Federal Agency/Office
Farm Service Agency, Department of Agriculture
Type(s) of Assistance Offered
D - Direct Payments With Unrestricted Use
Program Accomplishments
Not applicable.
Authorization
Milk Loss will provide payments to eligible dairy operations for milk that was dumped or removed without compensation from the commercial milk market due to droughts, wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze, including a polar vortex, smoke exposure, quality losses of crops, and excessive moisture that occurred in the 2020, 2021, and 2022 calendar years., Title Extending Government Funding and Delivering Emergency Assistance Act of 2021, Part Section 7 CFR 760 1600
The Consolidated Appropriations Act, 2023 (Pub. L. 117-328)
Disaster Relief Supplemental Appropriations Act, 2023.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Agriculture producers are eligible to apply.
Beneficiary Eligibility
Not applicable.
Credentials/Documentation
We recommend that producers who have not participated in a USDA program contact their local USDA service center to establish farm records. To establish a farm tract number, be sure to bring: proof of identity (driver's license, Social Security number/card); copy of recorder deed, survey plat, rental, or lease agreement of the land (you do not have to own property to participate in FSA programs); for entities, corporation, estate, or trust documents. To be eligible for Milk Loss once signup begins, an affected farmer must have produced milk that was dumped or removed without compensation from the commercial market due to qualifying weather events in 2020, 2021, and 2022 and not have been responsible for the dumped milk. The affected farmer will be asked to provide a copy of milk marketing statements for base period, claim period, and all sales documents. The affected farmer must certify to compliance with HELC and WC provisions. The affected farmer must also submit an accurate and complete application FSA-376 by the application deadline for the applicable Fiscal Year. 2CFR 200, Subpart E cost Principles applies to this program.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. An application for payment must be submitted on a completed application form. Applications and other supporting documentation must be submitted to the FSA County Office that services the county where the Affected Farmer is located, but, in any case, must be received by the FSA County Office by the close of business on the last day of the application period established by the Deputy administrator. An application received after the close of business after the application period will not be eligible for benefits. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Affected Farmer my apply through their local FSA county office by filing an application form and supporting documentation. The Dairy operation will complete FSA-376 to apply for Milk Loss benefits. Milk Loss indemnity payments is calculated using the determined pounds of milk loss and using the pay price from the milk marketing statement including the monthly deductions for trucking and promotion. The net payment amount is multiplied by a 90 percent payment factor for producers who meet the definition of beginning farmer or rancher, limited resource farmer or rancher, socially disadvantaged farmer or rancher, or veteran farmer or rancher or 75 percent payment factor for all other producers to determine the Milk Loss payment.
Award Procedure
The assistance will be approved and awarded by FSA County Committees to eligible affected farmers. The funds will be granted to participating state agencies by FSA. The grantees will determine affected farmer eligibility for assistance.
Deadlines
Contact the headquarters or regional location, as appropriate for application deadlines
Approval/Disapproval Decision Time
From 15 to 30 days.
Appeals
From 30 to 60 days. Requesters seeking administrative appeal of a denial of a request for records or denial of a fee waiver must ensure that the appeal is received by the agency within 45 days of the date of the denial letter. (b) Each agency shall provide for review of appeals by an official different from the official or officials designated to make initial denials. (c) 5 U.S.C. 552(a)(6)(A)(ii) provides that each agency in the Department to which an appeal of a denial is submitted shall inform the requester of its determination concerning that appeal within 20 working days (excepting Saturdays, Sundays, and legal public holidays), plus any extension authorized by ?1.16, of its date of receipt. If the agency determines to grant the appeal, it shall inform the requester of any conditions surrounding the granting of the request (e.g., payment of fees) and the approximate date upon which compliance will be affected. If the agency grants only a portion of the appeal, it shall treat the portion not granted as a denial. If it determines to deny the appeal either in part or in whole, it shall inform the requester of that decision and of the following: (1) The reasons for denial; (2) The name and title or position of each person responsible for denial of the appeal; and (3) The right to judicial review of the denial in accordance with 5 U.S.C. 552(a)(4). (d) Each agency, upon a determination that it wishes to deny an appeal, shall send a copy of the records requested and of all correspondence relating to the request to the Assistant General Counsel, General Law Division, Office of the General Counsel ("Assistant General Counsel"). When the volume of records is so large as to make sending a copy impracticable, the agency shall enclose an informative summary of those records. The agency shall not deny an appeal until it receives concurrence from the Assistant General Counsel (e) The Assistant General Counsel shall promptly review the matter (including necessary coordination with the agency) and render all necessary assistance to enable the agency to respond to the appeal within the administrative deadline or any extension of the administrative deadline.
Renewals
Not applicable.
How are proposals selected?
Not applicable.
How may assistance be used?
Agriculture producers are eligible to apply.
What are the requirements after being awarded this opportunity?
Reporting
Performance Reports: Once signup begins, producers will be asked to provide verifiable and reliable production records. Producers with this information on file do not need to provide again. Affected Farmer should bring the required certification and documentation for the last 3 years.
Auditing
Not applicable.
Records
The affected farmer, as well as the milk handler must maintain any books, records, and accounts supporting the information for 3 years following the end of the year during which the request for payment was submitted. In accordance with 7 CFR 200.333, the affected farmer, as well as the milk handler recipient should retain all records relating to the Milk Loss claim for a period of 3 years after the final Federal Financial Report has been submitted to the Federal Agency, or until final resolution of any audit finding or litigation, whichever is later.
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
There are no restrictions placed on the time permitted to spend the money awarded. Payments will be made on a first-come, first-served basis. Application received after all funds are used will not be paid. Method of awarding/releasing assistance: Lump.
Who do I contact about this opportunity?
Regional or Local Office
None/Not specified.
Headquarters Office
Douglas E. Kilgore
1400 Independence Avenue, SW
Washington, DC 20250-0512 USA
Douglas.E.Kilgore@usda.gov
Phone: (202) 720-9011
Financial Information
Account Identification
12-2701-0-1-351
Obligations
(Direct Payments with Unrestricted Use) FY 22$4,600,000.00; FY 23 est $0.00; FY 24 est $0.00; FY 21$0.00; -
Range and Average of Financial Assistance
Affected Farmers are subject to a $125,000 payment limitation for all eligible losses under Milk Loss Program. An affected farmer can receive a higher payment if three-fourths or more of their income is derived from farming or another agricultural-based business. Affected farmers who derived 90 percent for socially disadvantaged farmer or rancher, or veteran farmer or 75 percent for all other producers of their income in relevant tax years: (i) For the 2020 program year, 2016, 2017, and 2018; and (ii) For the 2021 program year, 2017, 2018, and 2019; and (iii) For the 2022 program year, 2018, 2019, and 2020.
Regulations, Guidelines and Literature
Regulations, Guidelines, and Literature Description is a required field 7 CFR Part 760 Subpart 1600
Examples of Funded Projects
Not applicable.

 



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