Whereas, the average short-term cost of milk production in the State has been determined by the Maine Milk Commission to be approximately $17 per hundredweight; and

Whereas, the blended price of milk to the State's dairy farmers has fallen to approximately $13 per hundredweight; and

Whereas, the State's dairy farmers can not continue to operate at prices below their cost of milk production; and

Whereas, the State may lose as many as 1/3 of its dairy farms in the near future; and

Whereas, a collapse of the State's dairy industry will have a significant adverse effect on related parts of the State's economy, including equipment dealers, agricultural supply businesses, fuel oil dealers, fertilizer dealers, insurance agencies and others; and

Whereas, the anticipated loss of dairy farms and other related businesses will have significant adverse effects on the economy of rural and inland Maine, jeopardize maintenance of valuable open space and compound existing problems of sprawl; and

Whereas, the State's dairy industry needs immediate economic relief to remain viable until milk prices come back into line with costs of production; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 7 MRSA §3153-A is enacted to read:

§3153-A.__Dairy stabilization subsidy

The Maine Milk Commission shall distribute funds on a monthly basis to the State's dairy farmers as a direct subsidy on a per hundredweight basis at the rate of 50% of the difference between $17 per hundredweight and the base price of milk per hundredweight for each month.__The base price of milk is the Suffolk County, Massachusetts statistical blend price of milk as