S T A T E O F N E W Y O R K
________________________________________________________________________
9226
2009-2010 Regular Sessions
I N A S S E M B L Y
November 4, 2009
___________
Introduced by M. of A. MAGEE -- read once and referred to the Committee
on Agriculture
AN ACT to amend the agriculture and markets law, in relation to estab-
lishing a dairy assistance program; and providing for the repeal of
such provisions upon expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The agriculture and markets law is amended by adding a new
article 21-D to read as follows:
ARTICLE 21-D
DAIRY ASSISTANCE PROGRAM
SECTION 258-OO. LEGISLATIVE INTENT.
258-PP. DAIRY ASSISTANCE PROGRAM.
S 258-OO. LEGISLATIVE INTENT. THE LEGISLATURE HEREBY FINDS THAT THIS
STATE'S DAIRY FARMERS CONTINUE TO LABOR UNDER A COMBINATION OF EXTREMELY
LOW MILK PRICES WELL BELOW THOSE OF TWENTY-FIVE YEARS AGO, ALONG WITH
VERY HIGH FUEL, FEED, ENERGY, FERTILIZER AND OTHER OPERATING COSTS.
THESE CONDITIONS HAVE RESULTED IN UNPRECEDENTED LOSSES FOR DAIRY FARMS.
THE PRICE OF MILK CONTINUES TO BE WELL BELOW THE COST OF PRODUCTION.
MANY OF THE VENDORS AND SERVICE INDUSTRIES SERVING DAIRY FARMERS HAVE
HAD TO PROVIDE AN INCREASING AMOUNT OF CREDIT TO SUCH FARMERS. THIS
ARTICLE IS ENACTED TO ASSIST THE DAIRY FARMERS OF THIS STATE AND THEIR
INDUSTRY IN A TIME OF GREAT NEED AND TO PREVENT FURTHER LOSS IN THE
DAIRY INDUSTRY AND ITS INFRASTRUCTURE WHICH ARE CRITICAL TO THE STATE'S
AGRICULTURAL ECONOMY.
S 258-PP. DAIRY ASSISTANCE PROGRAM. 1. A DAIRY ASSISTANCE PROGRAM IS
HEREBY ESTABLISHED WITHIN THE DEPARTMENT FOR THE PURPOSES OF PROVIDING
PAYMENT TO PRODUCERS FOR MILK PRODUCED DURING THE PERIOD COMMENCING ON
JULY FIRST, TWO THOUSAND EIGHT AND ENDING ON JUNE THIRTIETH, TWO THOU-
SAND NINE. THE DAIRY ASSISTANCE PROGRAM SHALL PAY ELIGIBLE PRODUCERS THE
DIFFERENCE BETWEEN TARGET PRICES TO BE ESTABLISHED BY THE COMMISSIONER
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14692-02-9
A. 9226 2
AND THE COMBINED ANNOUNCED NORTHEAST FEDERAL ORDER STATISTICAL UNIFORM
PRICE PLUS THE AMOUNT OF THE MILK INCOME LOSS CONTRACT PAYMENT RATE ON A
PER-HUNDREDWEIGHT BASIS. FURTHER, OTHER FACTORS MAY BE USED BY THE
COMMISSIONER IN DETERMINING PAYMENT TO PRODUCERS FOR MILK. DAIRY PRODUC-
ERS SHALL RECEIVE PAYMENT FROM FUNDS MADE AVAILABLE THROUGH THE AMERICAN
RECOVERY AND REINVESTMENT ACT OF 2009, AFTER CONSULTATION WITH THE
COMMISSIONER, IN THE FORM OF A SEPARATE CHECK BASED ON POUNDS OF MILK
PRODUCED DURING THE PERIOD COMMENCING ON JULY FIRST, TWO THOUSAND EIGHT
AND ENDING ON JUNE THIRTIETH, TWO THOUSAND NINE. SUCH PAYMENT SHALL BE
MADE NO LATER THAN THIRTY DAYS FOLLOWING THE EFFECTIVE DATE OF THIS
ARTICLE.
2. THE COMMISSIONER SHALL REQUEST THE UNITED STATES DEPARTMENT OF
AGRICULTURE'S FARM SERVICE AGENCY TO PROVIDE PRODUCTION DATA FOR PRODUC-
ERS AND ASSIST THE DEPARTMENT IN ADMINISTERING THE PROGRAM. PRODUCTION
DATA SHALL ONLY BE OBTAINED FROM PRODUCERS IN THIS MANNER PROVIDED SUCH
PRODUCER SUBMIT A FORM, PRESCRIBED BY THE COMMISSIONER, AUTHORIZING THE
RELEASE OF SUCH DATA. PRODUCERS WHO DO NOT PARTICIPATE IN THE MILK
INCOME LOSS CONTRACT PROGRAM SHALL SUBMIT TO THE DEPARTMENT ALTERNATIVE
MEANS OF VERIFYING PRODUCTION DATA AS PRESCRIBED BY THE COMMISSIONER,
INCLUDING BUT NOT LIMITED TO MILK MARKETING PAYMENT STUBS, BULK TANK
RECORDS, MILK HANDLER RECORDS AND DAILY MILK MARKETING RECORDS.
3. THE FOLLOWING SHALL NOT BE CONSIDERED COMMERCIALLY MARKETED MILK
AND SHALL BE INELIGIBLE FOR THE DAIRY ASSISTANCE PROGRAM:
(A) DUMPED MILK THAT CAUSES BULK LOAD CONTAMINATION FOR WHICH A
PRODUCER RECEIVES AN INSURANCE INDEMNITY; AND
(B) MILK DUMPED ON THE FARM BY ORDER OF ANY STATE OFFICER OR EMPLOYEE.
4. ALL PRODUCERS SHALL BE REIMBURSED FOR UP TO FIVE MILLION NINE
HUNDRED SEVENTY THOUSAND POUNDS OF MILK PRODUCED DURING THE PERIOD
COMMENCING ON JULY FIRST, TWO THOUSAND EIGHT AND ENDING ON JUNE THIRTI-
ETH, TWO THOUSAND NINE OR UNTIL SUCH TIME AS SIXTY MILLION DOLLARS IS
EXPENDED. THE COMMISSIONER IS HEREBY AUTHORIZED TO PROMULGATE ANY ADDI-
TIONAL RULES AND REGULATIONS NECESSARY TO IMPLEMENT THE PROVISIONS OF
THIS ARTICLE.
5. STATE FUNDS IN THE AMOUNT OF SIXTY MILLION DOLLARS SHALL BE MADE
AVAILABLE FOR THE DAIRY ASSISTANCE PROGRAM TO BE SUPPORTED THROUGH FUNDS
MADE AVAILABLE THROUGH THE AMERICAN RECOVERY AND REINVESTMENT ACT OF
2009 INCLUDING BUT NOT LIMITED TO SAVINGS RESULTING FROM THE INCREASED
FEDERAL MEDICAL ASSISTANCE PERCENTAGE (FMAP) PROVIDED PURSUANT TO THE
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009.
S 2. This act shall take effect immediately and shall expire and be
deemed repealed December 31, 2010.