2014 Farm Bill

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UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY FACT SHEET January 2018

Dairy Indemnity Payment Program

OVERVIEW

The Dairy Indemnity Payment Program (DIPP) 

provides payments to dairy producers when a 

public regulatory agency directs them to remove 

their raw milk from the commercial market 

because it has been contaminated by pesticides, 

nuclear radiation or fallout or toxic substances 

and harmful chemical residues thereof. DIPP also 

provides payments to manufacturers of dairy 

products only for products removed from the 

market because of pesticide contamination.

STATUTORY AUTHORITY

DIPP is authorized by Pub. L. 113-79, the 

Agricultural Act of 2014 (2014 Farm Bill). The 

2014 Farm Bill authorizes the extension of DIPP 

through Sept. 30, 2018.

ELIGIBILITY REQUIREMENTS

To be eligible to receive DIPP payments, the 

producer must:

• Have produced whole milk that was removed 

from the commercial market pursuant to the 

direction of a public agency;

• Not have been responsible for the milk 

contamination;

• Not have been indemnified for the same loss 

from another source;

• Certify compliance with Highly Erodible 

Land Conservation and Wetland Conservation 

provisions on form AD-1026; and

• Submit a completed form FSA-373, Dairy 

Indemnity Payment Program (DIPP) 

Application, to the applicable Farm Service 

Agency (FSA) county office no later than 

Dec. 31 following the end of the fiscal year in 

which the loss occurred.

Note: A producer may be eligible if the substance 

that caused the removal of the milk from the 

market was:

• Registered and approved for use by the Federal 

government when it was used; and

• Used according to prescribed directions on the 

label.

DETERMINING INDEMNITY

The county committee determines the affected 

producer’s normal marketing, which is based 

on the average daily production during the base 

period.

The indemnity payment to manufacturers of dairy 

products is calculated by multiplying the fair 

market value of the product times the amount 

of product removed from the market minus any 

salvage value of the product.

The indemnity payment to dairy producers is 

calculated by multiplying the number of cows 

milked, times the number of days milk is off the 

market, times base production in terms of pounds 

per cow per day, times the farm price for milk 

less hauling and promotion fees received by the 

producer.

BASE AND CLAIM PERIODS

The base period used to establish base production 

is the calendar month immediately before the 

month the milk is removed from the commercial 

market.

The claim period is the 28- to 32-day period in 

which the milk was removed from the market. A 

claim period may cross over into the next month, 

depending on when the milk would have been 

marketed. Claim periods do not depend on when 

the milk would have been produced.
FACT SHEET

DIPP January 2018

APPLICATION DEADLINE

Affected producers and manufacturers should 

apply for indemnity payments at a local USDA 

service center or FSA office. Applications must 

be filed no later than Dec. 31 following the fiscal 

year in which the loss occurred. Losses from more 

than one fiscal year cannot be included on one 

application form FSA-373.

EXAMPLE OF FINAL FILING DATE

The following provides an example of the final 

filing date:

If the loss occurred on or after Oct. 1, 2017, but 

by Sept. 30, 2018, the final filing date to apply is

Dec. 31, 2018.

NO DOUBLE PAYMENTS

Producers who receive indemnity payments, and 

then file a successful claim for damages against 

the party responsible for the contamination, must 

return to FSA within 14 days the lesser of the 

amount received in:

• An indemnity payment; or

• A claim against the party responsible for the 

contamination.

FOR MORE INFORMATION

This fact sheet if provided for informational 

purposes; other restrictions may apply. To find 

more information about DIPP and other FSA 

programs, visit the FSA website at 

www.fsa.usda.gov or contact your local FSA 

office or USDA service center. To find your local 

FSA office, visit http://offices.usda.gov.

_________________________________________

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, 

the USDA, its Agencies, offices, and employees, and institutions 

participating in or administering USDA programs are prohibited 

from discriminating based on race, color, national origin, religion, 

sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income 

derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program 

or activity conducted or funded by USDA (not all bases apply to 

all programs). Remedies and complaint filing deadlines vary by 

program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, 

audiotape, American Sign Language, etc.) should contact the 

responsible Agency or USDA’s TARGET Center at (202) 720-2600 

(voice and TTY) or contact USDA through the Federal Relay 

Service at (800) 877-8339. Additionally, program information may 

be made available in languages other than English.

To file a program discrimination complaint, complete the USDA 

Program Discrimination Complaint Form, AD-3027, found online 

at http://www.ascr.usda.gov/complaint_filing_cust.html and at any 

USDA office or write a letter addressed to USDA and provide in 

the letter all of the information requested in the form. To request 

a copy of the complaint form, call (866) 632-9992. Submit your 

completed form or letter to USDA by:

1) mail: U.S. Department of Agriculture Office of the Assistant

 Secretary for Civil Rights 1400 Independence Avenue, SW

 Washington, D.C. 20250-9410;

2) fax: (202) 690-7442; or

3) email: program.intake@usda.gov.

USDA is an equal opportunity provider, employer, and lender.

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