(7) $16.25 per hundredweight, in the case of
the Mideast marketing area.
(8) $16.15 per hundredweight, in the case of
the Pacific Northwest marketing area.
(9) $17.25 per hundredweight, in the case of
the Southwest marketing area.
(10) $16.60 per hundredweight, in the case of
the Arizona-Las Vegas marketing area.
(11) $16.15 per hundredweight, in the case of
the Western marketing area.
(12) In the case of an area not covered by an
order, a price per hundredweight determined by the
Secretary, taking into account the target prices in
adjacent marketing areas.
(i) COUNTER-CYCLICAL
PAYMENTS
FROM
SEC-
RETARY TO TRUST FUND.—
(1) IN GENERAL.—To the extent provided for
in advance in an appropriations Act, the Secretary
shall use the funds, facilities, and authorities of the
Commodity Credit Corporation to make a payment
each month to the Trust Fund in an amount deter-
mined by multiplying—
(A) the payment rate determined under
paragraph (2); by
(B) the quantity of eligible production of
Class II, Class III, and Class IV milk sold in
the various Districts during the month, as de-
termined by the Secretary.
(2) PAYMENT RATE.—The payment rate for a
payment made to the Trust Fund for a month under
paragraph (1)(A) shall equal 25 percent of the dif-
ference between—
(A) $13.00 per hundredweight; and
(B) the weighted average of the price re-
ceived by producers in each District for Class
III milk during the month, as determined by
the Secretary.
(j) PAYMENTS FROM TRUST FUND TO BOARDS.—
(1) IN GENERAL.—The Secretary shall use any
amounts in the Trust Fund that remain after pro-
viding the compensation required under subsection
(f) to make monthly payments to Boards.
(2) AMOUNT.—The amount of a payment made
to a Board of a District for a month under para-
graph (1) shall bear the same ratio to payments
made to all Boards for the month as the eligible pro-
duction sold in the District during the month bears
to eligible production sold in all Districts.
(3) PAYMENTS BY BOARDS TO PRODUCERS.—
(A) IN GENERAL.—With the approval of
the Secretary, a Board of a District shall use
payments received under paragraph (2) to make
payments to eligible producers for eligible pro-
duction of milk that is commercially sold in a
participating State in the District.
(B) SUPPLY
MANAGEMENT.—In carrying
out subparagraph (A), a Board of a District
may—
(i) use a portion of the payments de-
scribed in subparagraph (A) to provide bo-
nuses or other incentives to eligible pro-
ducers for eligible production to manage
the supply of milk produced in the Dis-
trict; and
(ii) request the Secretary to review a
proposed action under clause (i).
(C) 
REIMBURSEMENT
OF
COMMODITY
CREDIT CORPORATION.—
(i) IN GENERAL.—If the Secretary de-
termines that the Commodity Credit Cor-
poration has incurred additional costs to
carry out the milk price support program
as a result of overproduction of milk due
to the operation of this section in a Dis-
trict, the Secretary shall require the Board
of the District to reimburse the Com-
modity Credit Corporation for the addi-
tional costs.
(ii) BOARD ASSESSMENT.—The Board
of the District may impose an assessment
on the sale of milk within participating
States in the District to compensate the
Commodity Credit Corporation for the ad-
ditional costs.
SEC. 4. COUNTER-CYCLICAL PAYMENTS FOR ELIGIBLE
PRODUCERS 
FOR 
MILK 
SOLD 
TO 
PROC-
ESSORS IN NONPARTICIPATING STATES.
(a) PAYMENTS TO ELIGIBLE PRODUCERS.—To the
extent provided for in advance in an appropriations Act,
during each of calendar years 2003 through 2011, the
Secretary shall use the funds, facilities, and authorities of
the Commodity Credit Corporation to make payments to
an eligible producer in a District for milk sold to proc-
essors in a State that is not a participating State in an
amount determined by multiplying—
(1) the payment rate determined under sub-
section (b); by
(2) the payment quantity determined under
subsection (c).
(b) PAYMENT RATE.—The payment rate for a pay-
ment made to an eligible producer in a District for a
month under subsection (a) shall equal 25 percent of the
difference between—
(1) $13.00 per hundredweight; and
(2) the average price received by producers in
the District for Class III milk during the month, as
determined by the Secretary.
(c) PAYMENT QUANTITY.—The payment quantity for
a payment made to an eligible producer in a District for
a month under subsection (a) shall be equal to—
(1) the quantity of eligible production of Class
II, Class III, and Class IV milk for the eligible pro-
ducer during the month, as determined by the Sec-
retary; less
(2) the quantity of any milk that is sold by the
eligible producer to a processor in a participating
State during the month.
SEC. 5. PAYMENT LIMITATION.
In determining the amount of payments made for eli-
gible production under this Act, no individual or entity di-
rectly or indirectly may be paid on production in excess
of 230,000 pounds of milk per month.
Æ