Resolve, Authorizing Adjustments to Payments under the Dairy Stabilization Program

Emergency preamble. Whereas,  acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas,  it is in the State’s economic interest to maintain a viable dairy industry; and

Whereas,  payments under the dairy stabilization program are crucial to Maine dairy farmers during periods of low milk prices in a regulated market; 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

Sec. 1. Cap on transfers for the dairy stabilization program in fiscal year 2011-12. Resolved: That, notwithstanding the Maine Revised Statutes, Title 7, section 3153-D, in fiscal year 2011-12 the administrator of the Maine Milk Pool may not certify any amount to be transferred from the General Fund for distributions under Title 7, section 3153-B that would bring the total amount transferred in fiscal year 2011-12 above $9,835,826. Notwithstanding Title 7, section 3153-B, subsection 4, in fiscal year 2011-12 the administrator of the Maine Milk Pool may not distribute payments for dairy stabilization support that in the aggregate exceed $9,835,826; and be it further

Sec. 2. Target prices and tier production levels. Resolved: That the target prices and tier production levels used to calculate distribution payments under this resolve are as provided in PL 2009, chapter 467, section 9; and be it further

Sec. 3. Administrator authorized to make adjustments to monthly dairy stabilization payments during the period from July 1, 2011 to June 30, 2012. Resolved: That during the period from July 1, 2011 to June 30, 2012 the administrator of the Maine Milk Pool shall monitor milk price projections and each month calculate the total dairy stabilization support to be paid out under the Maine Revised Statutes, Title 7, section 3153-B, subsection 4 in fiscal year 2011-12 based on these projections.

Notwithstanding Title 7, section 3153-B, subsection 4, the administrator may adjust the amount requested and the amount distributed in any month during fiscal year 2011-12 based on the most recent projections and calculations made under this section. The administrator may reduce payments only if projections indicate that without an adjustment the total distributions under the stabilization program in fiscal year 2011-12 would exceed $9,835,826. When adjustments in payments are authorized, the administrator of the Maine Milk Pool shall calculate payments in accordance with sections 4 and 5 of this resolve and each month certify to the State Controller the amounts to be transferred; and be it further

Sec. 4. Calculation of payments in July, August and September. Resolved: That, when adjustments are authorized under section 3 of this resolve, the administrator of the Maine Milk Pool shall calculate and distribute payments in July, August and September 2011 on milk produced in June, July and August 2011, respectively, as follows:

1. The administrator shall assign each producer to one of 4 tiers based on that producer’s total production during the 12-month period beginning June 1, 2010 and ending May 31, 2011, with tier 1 being the lowest production and tier 4 the highest; and

2. Upon receiving the monthly production data, the administrator shall:

Sec. 5. Calculation of monthly payments in October 2011 to June 2012. Resolved: That when adjustments are authorized under section 3 of this resolve, the administrator of the Maine Milk Pool shall calculate and distribute payments in the months of October 2011 to June 2012 for milk produced in the months of September 2011 to May 2012 by reducing the target price for each tier by the same percentage.

Emergency clause. In view of the emergency cited in the preamble, this resolve takes effect when approved.

summary

This resolve authorizes the administrator of the Maine Milk Pool to adjust payments under the dairy stabilization program in fiscal year 2011-12 when projections indicate that payments will exceed $9,835,826. This figure is the Revenue Forecasting Committee’s December 2010 recommendation for transfer from the General Fund to the Maine Milk Pool in fiscal year 2011-12. This resolve directs the administrator to reduce payments by the same percentage for each tier for the months from October 2011 to June 2012. It provides for progressively greater reductions between tiers for payments distributed in July, August and September.