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Dairy Market Loss Assistance Program

Program Descriptions

Program Number



Dairy Market Loss Assistance Program


Federal Agency




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.






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.


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

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.


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

Range of Approval/Disapproval Time

From 1 to 60 days.


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.



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.

Length and Time Phasing of Assistance

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.


Post Assistance Requirements


All persons involved in such dairy operation marketing milk during the fourth quarter of 1998 shall provide any available supporting documents to assist the county FSA office in verifying that the dairy operation produced and marketed milk commercially during the fourth quarter of 1998 and the base period milk marketings indicated on Form CCC 1040. Examples of supporting documentation include, but are not limited to: tank records, milk handler records, milk marketing payment stubs, daily milk marketings, copies of any payments received as compensation from other sources, or any other documents available to confirm the production and production history of the dairy operation. In the event that supporting documentation is not presented to the county FSA office requesting the information, dairy operations will be determined ineligible for benefits.


Recipients under this program are subject to audit by the Office of the Regional Inspector General, USDA.


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.


Financial Information

Account Identification



(Direct Payments) FY 07 $0; FY 08 $0; and FY 09 est not reported.

Range and Average of Financial Assistance

The maximum payment that any dairy operation can receive will be $25,225. Average payments per operation are expected to be about $8,300 for about 80,000 dairy operations in the United States.


Program Accomplishments



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. DMLA III Fact Sheet may be located online at


Information Contacts

Regional or Local Office

Consult the local phone directory for location of the nearest county FSA office. If no listing, contact the appropriate State FSA office listed in the FSA section of Appendix IV of the Catalog, or on the Internet at

Headquarters Office

Department of Agriculture, Farm Service Agency, Price Support Division, Stop 0512, 1400 Independence Avenue S.W., Washington, DC 20250-0517. Telephone: (202) 720-1919.

Web Site Address


Related Programs

10.053, Dairy Indemnity Program
10.080, Milk Income Loss Contract Program


Examples of Funded Projects

Not applicable.


Criteria for Selecting Proposals

All producers meeting eligibility requirements may receive assistance. Applications are non-competitive.


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