Milk Income Loss Contract Program
Published on AidPage by
IDILOGIC on Jun 24, 2005
Purpose of this program:
To maintain and expand existing markets for dairy which are vital to the welfare of milk producers in the United States. Payments under this program will be limited to dairy operations that produced milk in the United States and commercially marketed milk during the period of December 1, 2001 through September 30, 2005.
Possible uses and use restrictions...
Each fiscal year, eligible dairy operations can receive a monthly payment based on monthly milk marketing, up to a maximum of 2.4 million pounds per dairy operation, for the fiscal year. Dairy operations who make changes to their producer status or who reconstitute their farm operations on or after December 1, 2001 for the sole purpose of receiving additional payments will not be eligible for the benefits under the program implemented by this rule.
Who is eligible to apply...
To be eligible, dairy producers must: (1) have produced milk in the United States and commercially marketed the milk produced anytime during the period of December 1, 2001 through September 30, 2005; (2) enter into a MIL contract during the contract application period; (3) agree to all terms and conditions in the MIL contract and comply with instructions issued by the Commodity Credit Corporation; (4) provide proof of monthly milk production commercially marketed by all persons in the dairy operation during the contract period, to determine the total pounds of milk that will be converted to hundredweight (cwt.) used for payment; (5) submit timely production evidence according to Sec. 1430.209; (6) be actively engaged in the business of producing and marketing agricultural products at the time of signing the MIL contract; (7) in administering this program, the eligibility determination of dairy operation shall be made in the same manner as Dairy Market Loss Assistance (DMLA) contracts in that State; and (8) new MIL contract operations must be unaffiliated with prior DMLA operations.
Credentials/Documentation
Before MIL contract payments are issued, all persons involved in a single dairy operation must provide evidence of eligible marketing. Verifiable production evidence can include: (1) milk marketing payment stubs, (2) tank records, (3) milk handler records, (4) daily milk marketing, and (5) copies of any payments received as compensation from other sources.
Note:This is a brief description of the credentials or documentation required prior to, or along with, an application for assistance.
About this section:
This section indicates who can apply to the Federal government for assistance and the criteria the potential applicant must satisfy.
For example, individuals may be eligible for research grants, and the criteria to be satisfied may be that they have a professional or scientific degree,
3 years of research experience, and be a citizen of the United States. Universities, medical schools, hospitals, or State and local governments may also be eligible.
Where State governments are eligible, the type of State agency will be indicated (State welfare agency or State agency on aging) and the criteria that they
must satisfy.
Certain federal programs (e.g., the Pell Grant program which provides grants to students) involve intermediate levels of application processing, i.e., applications
are transmitted through colleges or universities that are neither the direct applicant nor the ultimate beneficiary. For these programs,
the criteria that the intermediaries must satisfy are also indicated, along with intermediaries who are not eligible.
How to apply...
Application Procedure:
To apply for the MIL contract program, dairy operation producers must submit form CCC-580, "Milk Income Loss Contract," to Farm Service Agency (FSA) county office where the dairy operation is located. The CCC-580 must show total pounds of all milk produced and marketed during each month for all persons receiving a share of the marketed milk. Monthly milk production may not be apportioned to circumvent the maximum payment quantity. All persons who share in the risk of a dairy operation's total production must certify information on the CCC-580. FSA will accept only one CCC-580 per operation. When applying for a MIL contract, operators must also have on file: (1) form AD-1026, "Highly Erodible Land Conservation and Wetland Conservation Certification," used to certify understanding of the conservation compliance requirements under USDA programs; and (2) form SF-1199A, "Direct Deposit Sign Up Form," used to sign up for the direct deposit of payments into the payee's account.
Note: Each program will indicate whether applications are to be submitted to the Federal headquarters, regional or local office, or to a State or local government office.
Award Procedure:
The Price Support Division (PSD) in Washington DC is responsible for the implementation of the MIL contract program in county offices. They will manage the contracts and determine the eligibility of monthly payments for each contract.
Note: Grant payments may be made by a letter of credit, advance by Treasury check, or reimbursement by Treasury check.
Awards may be made by the headquarters office directly to the applicant, an agency field office, a regional office,
or by an authorized county office. The assistance may pass through the initial applicant for further distribution by
intermediate level applicants to groups or individuals in the private sector.
Deadlines and process...
Deadlines
Sign-up for the MIL contract program began on August 13, 2002 and it will end on September 30, 2005. Eligible dairy producers can apply for program benefits anytime during this sign-up time frame.
Note:
When available, this section indicates the deadlines for applications to the funding agency which will
be stated in terms of the date(s) or between what dates the application should be received.
When not available, applicants should contact the funding agency for deadline information.
Range of Approval/Disapproval Time
From 1 to 60 days.
Preapplication Coordination
None. This program is excluded from coverage under E.O. 12372.
Note:
This section indicates whether any prior coordination or approval is required with governmental or nongovernmental units
prior to the submission of a formal application to the federal funding agency.
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.
Note:
In some cases, there are no provisions for appeal. Where applicable, this section discusses appeal procedures or allowable rework time for resubmission
of applications to be processed by the funding agency. Appeal procedures vary with individual programs and are either listed in this section or
applicants are referred to appeal procedures documented in the relevant Code of Federal Regulations (CFR).
Renewals
Not applicable.
Note:
In some instances, renewal procedures may be the same as for the application procedure, e.g., for projects of a non-continuing nature renewals will be treated as new, competing applications; for projects of an ongoing nature, renewals may be given annually.
Who can benefit...
Eligible dairy producers are those who, beginning December 1, 2001 through September 30, 2005: (1) commercially produce and market cow milk in the United States, or (2) produce milk in the United States and commercially market the milk outside the United States. In addition, dairy producers from a foreign country who have a working visa or other valid taxpayer identification number are eligible for MIL contract benefits.
Beneficiaries
About this section:
This section lists the ultimate beneficiaries of a program, the criteria they must satisfy and who specifically is not eligible. The applicant and beneficiary will generally be the same for programs that provide assistance directly from a Federal agency. However, financial assistance that passes through State or local governments will have different applicants and beneficiaries since the assistance is transmitted to private sector beneficiaries who are not obligated to request or apply for the assistance.
What types of assistance...
Direct Payments with Unrestricted Use
Financial assistance from the Federal government provided directly to beneficiaries who satisfy Federal eligibility requirements with no restrictions being imposed on the recipient as to how the money is spent. Included are payments under retirement, pension, and compensatory programs.
How much financial aid...
Range and Average of Financial Assistance
Not applicable.
Note:
This section lists the representative range (smallest to largest) of the amount of financial assistance available. These figures are based upon funds awarded in the past fiscal year and the current fiscal year to date. Also indicated is an approximate average amount of awards which were made in the past and current fiscal years.
Obligations
(Direct Payments) FY 03 $0; FY 04 $2,500,000,000; and FY 05 not available; (Direct Payments) FY 03 $2,500,000,000; FY 04 est $1,500,000,000; and FY 05 est $0.
Note:
The dollar amounts listed in this section represent obligations for the past fiscal year (PY), estimates for the current fiscal year (CY), and estimates for the budget fiscal year (BY) as reported by the Federal agencies. Obligations for non-financial assistance programs indicate the administrative expenses involved in the operation of a program.
Account Identification
12-4336-0-1-351.
Note:
Note: This 11-digit budget account identification code represents the account which funds a particular program.
This code should be consistent with the code given for the program area as specified in Appendix III of the Budget of the United States Government.
Examples of funded projects...
Not applicable.
About this section
This section indicates the different types of projects which have been funded in the past. Only projects funded under Project Grants or Direct Payments for Specified Use should be listed here. The examples give potential applicants an idea of the types of projects that may be accepted for funding. The agency should list at least five examples of the most recently funded projects.
Program accomplishments...
None, this is a new program.
Criteria for selecting proposals...
All producers meeting eligibility requirements may receive assistance. Applications are non-competitive.
Assistance considerations...
Length and Time Phasing of Assistance
Except as provided in Sections 1430.205 and 1430.206, contracts entered into by producers in a dairy operation shall cover eligible production marketed by producers during the period beginning with the first day of the month producers enter into contract and ending on September 30, 2005. If a dairy goes out of business during the contracted period, the MIL contract program will be terminated immediately, except as applicable to earned payments.
Formula and Matching Requirements
Payments under this program may be made to dairy operations when the Boston Class I milk price under the applicable Federal milk marketing order is below $16.94 per cwt. No payments will be made to dairy operations for marketing during the months that the Boston Class I milk price under the applicable milk marketing order exceeds $16.94.
Note:
A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.
Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.
In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.
Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.
Post assistance requirements...
Reports
None.
Note:
This section indicates whether program reports, expenditure reports, cash reports or performance monitoring are required by the Federal funding agency, and specifies at what time intervals (monthly, annually, etc.) this must be accomplished.
Audits
Recipients under this program are subject to audit by the Office of the Regional Inspector General, USDA.
Note:
This section discusses audits required by the Federal agency.
The procedures and requirements for State and local governments and nonprofit entities are set forth in OMB Circular No. A-133.
These requirements pertain to awards made within the respective State's fiscal year - not the Federal fiscal year,
as some State and local governments may use the calendar year or other variation of time span designated as the fiscal year period,
rather than that commonly known as the Federal fiscal year (from October 1st through September 30th).
Records
Producers approved for benefits under this program must maintain accurate records and accounts in order to document that they meet all eligibility requirements specified herein, as may be requested by the Commodity Credit Corporation or the Farm Service Agency. Such records and accounts must be retained for 3 years after the date of payment to the dairy operation under this program. Destruction of the records 3 years after the date of payment shall be the risk of the party undertaking the destruction.
Note:
This section indicates the record retention requirements and the type of records the Federal agency may require.
Not included are the normally imposed requirements of the General Accounting Office.
For programs falling under the purview of OMB Circular No. A-102, record retention is set forth in Attachment C.
For other programs, record retention is governed by the funding agency's requirements.
Regulations...
Authorization
Section 1502 of the Farm Security and Rural Investment Act of 2002, Public Law. 107-171; 7 U.S.C. 7981 and 7982; 15 U.S.C. 714b and 714c.
Note:
This section lists the legal authority upon which a program is based (acts, amendments to acts, Public Law numbers, titles, sections, Statute Codes, citations to the U.S. Code, Executive Orders, Presidential Reorganization Plans, and Memoranda from an agency head).
Regulations, Guidelines, And Literature
Program is announced through news media and in letters to agricultural producers in the county. Regulations published in the Federal Register, 7 CFR part 1430. MIL Fact Sheet may be located online at http://www.fsa.usda.gov/pas/publications/facts/html/milc02.htm.