2.__Repeal.__This section is repealed June 30, 2007.__The joint standing committee of the Legislature having jurisdiction over agricultural matters shall review this section and make recommendations regarding this section to the Legislature no later than March 1, 2007.

Sec. 2. Target prices. Notwithstanding the Maine Revised Statutes, Title 7, section 3153-B, subsection 1, for the year beginning July 1, 2004 and until the Maine Milk Commission updates the Maine producer cost-of-production data and calculates new target prices, the target prices are as follows:

1. For the first 16,790 hundredweight produced per year by each producer, the target price is $16.18 per hundredweight;

2. For production between 16,791 hundredweight and 26,050 hundredweight per year, the target price is $15.59 per hundredweight; and

3. For production in excess of 26,050 hundredweight per year, the target price is $13.12 per hundredweight.

Sec. 3. Ad hoc committee. The Department of Agriculture, Food and Rural Resources shall implement the recommendations of the Governor's Task Force on the Sustainability of the Dairy Industry in Maine. The Commissioner of Agriculture, Food and Rural Resources shall assemble an ad hoc committee of industry representatives to make specific task assignments, establish benchmarks and issue a progress report to the Governor each year no later than October 15th beginning in 2004, with a final report and analysis due in 2007. The Governor shall consider the findings of the report in making funding recommendations to support the dairy industry.

SUMMARY

This bill creates 2 programs of assistance to support the prices paid to dairy farmers for their milk. The 2 programs are based on the recommendations of the Governor's Task Force on the Sustainability of the Dairy Industry in Maine.