# Presentation: 767897

## Dairy Disaster Assistance Payment Program

- DDAP-III

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
We continue with the Dairy Disaster Assistance Payment Program training, discussing how to apply for benefits in module 2.

## FSA-747

- Application for DDAP-III benefits
- Separate FSA-747 for each operation
- All persons who share in the risk of operations total production must certify.
- One FSA-747 for multiple disasters

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
Eligible applicants must use FSA-747 to apply for DDAP-III program benefits.  

A separate FSA-747 shall be filed for each dairy operation that suffered qualifying losses during the eligible period.  More than one FSA-747 application for benefits is NOT acceptable by the same operation during the eligible period.

All persons who share in the risk of a dairy operation’s total production must certify to the information on FSA-747 before the application will be considered complete for review by FSA.  

One FSA-747 may be completed to apply for eligible losses from multiple natural disasters, when multiple declarations have been issued for a county during the eligible period.

## Example #1

- ABC Dairy Operation consists of   Bob Jones and Frank Smith who jointly share in the operation 50%.
- ABC Dairy Operation completes   FSA-747 that includes both Bob Jones and Frank Smith at their  50/50 interest.

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
If a dairy operation consists of more than 1 producer:

Complete 1 application for the entire dairy operation
Include all producers who share in the operation on the application and obtain signatures for each producer accordingly.

For example, ABC Dairy Operation consists of Bob Jones and Frank Smith who jointly share in the operation 50-50.

ABC Dairy Operation must complete one FSA-747 application for benefits that includes all milk marketed by both persons in ABC Dairy Operation indicating their respective 50-50 shares on the application.

## Example #2

- XYZ Dairy Operation is 100% owned by Frank Smith who is also a member of ABC Dairy Operation from Example #1.
- XYZ Dairy Operation completes an FSA-747 for Frank Smith’s 100% interest

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
In example number 2, XYZ Dairy Operation is 100% owned by Frank Smith who is also a member of ABC Dairy Operation from the previous example.  

Frank Smith must complete an FSA-747 for his 100% interest in all the milk marketed from XYZ dairy operation.  

Therefore, Frank Smith will have two applications on file, the one with ABC Dairy Operation for his 50% interest with Bob Jones and the one for his 100% interest in XYZ Dairy Operation. 

## Separate Dairy Operations

-   A dairy operation is considered separate when _**both**_ of the following apply:
- Milk production is not commingled
- All milk marketing payments and records are separate.

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
When more than 1 dairy operation uses the same facilities, each operation shall be considered a separate operation when both of the following apply:

Milk production is not commingled 
All milk marketing payments and records are separate.

## Signature Requirements

-   All participants’ signatures must be received by the ending signup date to be announced at a later date.  Neither STC nor COC has authority to approve late-filed FSA-747.

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
County Offices shall follow 1-CM for producers signature and authorization provisions and persons signing FSA-747 in a representative or fiduciary capacity.

All participants signatures must be received by the ending signup date to be announced at a later date.  Neither the STC nor the COC has the authority to approve late-filed FSA-747’s.

## Deceased Individuals and Dissolved Entities

- Must have authority to sign
- Use FSA-325 according to 1-CM

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
If an eligible producer who is now deceased or is a dissolved entity, then an authorized representative of the deceased individual or dissolved entity may sign the FSA-747, if proof of authority to sign for the deceased producer’s estate or a dissolved entity is on file in the County Office before the representative is allowed to sign the FSA-747.   

If a producer is now a dissolved general partnership or joint venture, all members of the general partnership or joint venture at the time of dissolution or their duly-authorized representatives must sign the FSA-747 for payment.  

The FSA-325 is only used when the program application was filed by an individual who subsequently died.  FSA-325 is not applicable for determining who may file a program application.

## Multiple Benefit Deduction

- Payments made for 2005 DDAP-II must be reduced by the amount received under DDAP-III.
- Producers must certify on FSA-747 whether a 2005 DDAP-II payment was received.

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
Nine “Gulf States” were eligible for 2005 DDAP-II.  They were: Alabama, Arkansas, Florida, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas 

The amount received under the previously administered DDAP-II program will be taken out of DDAP-III.  If the DDAP-III payment exceeds the DDAP-II payment received, the producer will receive no benefit for DDAP-III.  

## FSA-747

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
In the upper portion of the FSA-747, the COC designee is responsible for entering the State Code, the County Code, the date the application is submitted to the county office, and the contract number assigned from the eDDAP software.

## Part A

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
Part A, Items 5A through 5D, requests general information to be completed by the producer, including the name of the dairy operation, the contact producer’s name and address, the contact producers’ email address and telephone number.

## Part B

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
Part B, item 6 request information on the number of cows in the dairy operation.

Only the months applicable for the year or years being requested should be completed by the producer.

The producer must enter the number of dairy cows in the herd on the first of each month.  This number should represent both milking cows and dry cows.  However, cows purchased and added to the herd to offset production losses as a result of the declared disaster should not be included in the monthly cow numbers, for the month in which the cows were purchased and subsequent months thereafter, so that the dairy operation isn’t penalized for this abnormal purchase.

## Part C

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
Part C captures production information.  The producer must check the year or years for which they are applying and enter the annual commercially marketed production applicable to the calendar year in which benefits are being requested.  

Producers must also enter the estimated amount of production lost due to the qualifying disaster for each applicable year in which benefits are being requested.  However, the payment quantity cannot exceed the higher of the loss claimed here or the formula amount determined under the program regulations.

More than one year may be requested, however, a declared disaster condition must have occurred in all years in which benefits are being requested.  

## Part D

**Losses determined by COC **_**not**_** be disaster related losses must be:**
**  ****Entered in Part D**
**  ****Adjusted from calculated production losses as provided in module 3**
**  ****Documented in COC minutes**

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
In Part D, the County Committee designee shall record any changes in cow numbers that are not the result of the declared disaster.  This includes cattle sold or deceased that were not as a result of the declared disaster.

County Committee’s will determine production losses that are not caused by the disaster associated with the natural disaster declaration based on County Committee knowledge of the disaster occurrence and associated conditions.  Losses determined by the County Committee not to be disaster related losses must be:

Entered in Part D 
Adjusted from the calculated production losses for the dairy operation, which we will cover in module 3
And documented in the County Committee minutes including all factors considered in making the determination of whether losses were unrelated to the natural disaster declaration.

Please note that normal fluctuations in herd numbers, such as, culls, heifers entering the herd, and deaths related to the disaster, should not be entered in this part.

## Example

- Bob Jones suffered losses in 2005 as a result of Hurricane Katrina and lost 5 cows in September as a result.
- In December he sells 10 cows to another farmer, and the sale is unrelated to the hurricane in September.
- An entry for 10 cows is made in row and column for December 2005.

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
In this example, Producer Bob Jones suffers loses in September 2005 as the result of a hurricane and loses 5 cows. In December he sells 10 cows to another farmer.  However, the sale of the cows in December is unrelated to the hurricane in September.  

The COC determines that the loss of 5 cows in September is hurricane related, but the sale of cows in December is not hurricane related.  The COC designee will make an entry of 10 in the row for 2005 in the column for December.  

## Part E

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
Part E of the FSA-747 is where the producer certifies that all the information entered on the application is true and correct.  The producer also certifies receipt of any payment previously received for the 2005 DDAP-II program.  The County Committee designee shall determine the payment amount received and record the amount paid to be deducted from the DDAP-III payment.

Each producer that has a share in the dairy operation must sign in item 9 of this part after carefully reading the certification information.  

Each producer must also provide in items 10 through 13 respectively, the last 4 digits of their taxpayer identification number, the date of signature, applicable share percentage of the dairy operation for each year in which benefits are being requested, and must also indicate if they are or are not accepting the benefits by checking Yes or No as applicable.

## Part F

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
Part F records the COC determination and includes the name, title and signature of the COC designee.  The date the application is signed and whether or not the application is approved or disapproved for payment.  

The County Office name and telephone numbers are also entered in this part, including any notable remarks regarding approval or disapproval.

## Supporting Documentation

-   Adequate proof of the following must be provided at time of application:
- Dairy herd inventories
- Commercially marketed production
- Dumped production not marketed
- Dairy cows added to offset losses.

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
When applying for DDAP-III benefits, eligible participants must provide adequate proof, to the satisfaction of the County Committee, of the dairy operation’s commercial production, including any dairy herd inventory records for the operation, for each month of the applicable base period and claim period that corresponds with the issuance date of the applicable natural disaster declaration. 

Before the FSA-747 submitted by the dairy operation can be approved for payment, proof of dairy herd inventories, commercial milk production marketed by the dairy operation for the applicable base period and claim period, dumped or spoiled milk not marketed, and dairy cows added to the milking herd to offset production losses must be provided to establish the commercial marketing and production history of the dairy operation so that production losses can be computed. 

## Acceptable Documentation

- Inventory records
- Sales receipts/invoices
- State health certificates
- Milk marekting statements
- Tank records
- Milk handler records
- Daily milk marketings
- Copies of payments received for loss

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
Documents providing verification of losses and confirming cow herd numbers include, but are not limited to, any of, or a combination of:

Inventory records
Sales receipts or invoices
State health certificates
Milk marketing statements
Tank records 
Milk handler records
Dairy milk marketings, or 
Copies of any payments received from other sources for production losses.

In addition to these items, County Committees may request any documentation necessary to determine eligibility, except tax records.

If any data on FSA-747 or supporting documents is questionable, the County Committee shall request additional documentation or evidence from the applicant or other sources.  All information provided is subject to verification, spot check, and audit by FSA.

If adequate proof is not provided to the satisfaction of the County Committee, the request for benefits will not be approved.

## Acting on Application

- If any data on FSA-747 or supporting documents is questionable, COC shall request additional documentation/evidence from applicant or other sources.

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
If any data on FSA-747 or supporting documents is questionable, the County Committee shall request additional documentation or evidence from the applicant or other sources.

## Reviewing Documentation

- Make a copy, date stamp copy, return originals
- Verify marketings are for applicable base and claim period
- Determine if herd inventory is substantiated
- Verify cow additions to herd
- Confirm production losses are reasonable and disaster related
- Determine losses or cow purchases unrelated to declared disaster

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
When the supporting documentation is received in the County Office:

make a copy, date stamp the copy, and return originals to the contact producer, please note that this is not required for FAX copies

review the documentation to verify that the marketed production is for the applicable base period and claim period 

determine if herd inventories are substantiated

review the documentation to verify any dairy cow additions to the milking herd, if applicable

confirm that production losses are reasonable and attributable to the declared disaster

determine production losses or cow purchases not resulting from the declared disaster

All supporting documentation should be attached to the FSA-747 providing pertinent comments in the section for remarks.

## Discrepancies

| COC DETERMINATION | ACTION |
| --- | --- |
| Good Faith | No further action necessary |
| Misrepresentation, scheme, or device | Dairy operation ineligible and must refund payment |

- Module 2 - Applying for DDAP-III Benefits

**Notes:**
All production or cow number discrepancies must be resolved to the satisfaction of the County Committee before DDAP-III program benefits will be approved for payment to the dairy operation.  

The County Committee must review and determine good faith or misrepresentation, scheme, or device.

If the County Committee determines good faith, no further action is necessary.  However, if the County Committee cannot determine good faith and determines that misrepresentation, scheme, or device occurred, the dairy operation is not eligible for DDAP-III program benefits and the entire DDAP-III program payment must be refunded.

County Committee’s shall use their knowledge and judgment when determining good faith to ensure that the dairy operation did not intentionally misrepresent information or certify incorrectly.

For dairy operations that must refund DDAP-III program payments because the dairy operation has been determined out of compliance, interest will accrue at the CCC borrowing interest rate from the date of payment through the date the refund is received.  

County Offices must inform the producer of any amounts due according to 58-FI.  If refunds are not paid by the due date, a claim must be established according to Handbook 58-FI in the normal manner.