(9) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
(10) STATE.—The term ‘State’ means one of
the 48 contiguous States of the United States.
(11) TRUST FUND.—The term ‘‘Trust Fund’’
means the National Dairy Producers Trust Fund.
SEC. 3. NATIONAL COUNTER-CYCLICAL INCOME SUPPORT
PROGRAM FOR DAIRY PRODUCERS.
(a) INCOME SUPPORT FOR ELIGIBLE PRODUCERS
FOR MILK SOLD
TO PROCESSORS
IN PARTICIPATING
STATES.—During each of calendar years 2003 through
2011, the Secretary shall carry out a program under this
section to support the income of eligible producers for milk
sold to processors in participating States.
(b) PARTICIPATING STATES.—
(1) AUTOMATIC
PARTICIPATION.—Each State
shall be a participant in the program established by
the Secretary under this section unless the State
elects to withdrawal from the program as provided
in paragraph (2).
(2) WITHDRAWAL.—For a State to withdraw
from participation in the program under this section,
the Governor of the State (with the concurrence of
the legislature of the State) shall provide written no-
tice to the Secretary of the withdrawal of the State
from participation in the program.
(3) EFFECTIVE
DATE
OF
WITHDRAWAL.—In
the case of written notice submitted by a State dur-
ing the 180-day period beginning on the date of the
enactment of this Act, the withdrawal of the State
shall take effect on the date on which the notice is
submitted to the Secretary. After the end of such
period, the withdrawal of the State shall take effect
on the date that is one year after the date on which
the notice is provided to the Secretary.
(c) REGIONAL SUPPLY MANAGEMENT DISTRICTS.—
To carry out this section, the Secretary shall establish 5
Regional Supply Management Districts to be composed of
the following States, unless and until the States with-
drawal from participation in the program under subsection
(b):
(1) NORTHEAST DISTRICT.—A Northeast Dis-
trict consisting of the States of Connecticut, Dela-
ware, Maine, Maryland, Massachusetts, New Hamp-
shire, New Jersey, New York, Ohio, Pennsylvania,
Rhode Island, and Vermont.
(2) SOUTHERN DISTRICT.—A Southern District
consisting of the States of Alabama, Arkansas, Flor-
ida, Georgia, Kansas, Kentucky, Louisiana, Mis-
sissippi, Missouri, Nebraska, New Mexico, North
Carolina, Oklahoma, South Carolina, Texas, Ten-
nessee, Virginia, and West Virginia.
(3) UPPER
MIDWEST
DISTRICT.—An Upper
Midwest District consisting of the States of Illinois,
Indiana, Iowa, Michigan, Minnesota, North Dakota,
South Dakota, and Wisconsin.
(4) INTERMOUNTAIN
DISTRICT.—An Inter-
mountain District consisting of the States of Ari-
zona, Colorado, Idaho, Montana, Nevada, Utah, and
Wyoming.
(5) PACIFIC DISTRICT.—A Pacific District con-
sisting of the States of California, Oregon, and
Washington.
(d) REGIONAL SUPPLY MANAGEMENT BOARDS.—
(1) IN GENERAL.—Each District shall be ad-
ministered by a Regional Supply Management
Board.
(2) COMPOSITION.—The Board of a District
shall be composed of not less than two, and not
more than three, members from each participating
State in the District, appointed by the Secretary
from nominations submitted by the Governor of the
State.
(3) NOMINATIONS.—The Governor of a partici-
pating State shall nominate at least five residents of
the State to serve on the Board, of which—
(A) at least one nominee shall be an eligi-
ble producer at the time of nomination; and
(B) at least one nominee shall be a con-
sumer representative.
(e) NATIONAL DAIRY PRODUCERS TRUST FUND.—
(1) ESTABLISHMENT AND FUNDING.—There is
established in the Treasury of the United States a
trust fund to be known as the National Dairy Pro-
ducers Trust Fund, which shall consist of—
(A) the payments received by the Secretary
and deposited in the Trust Fund under sub-
section (g); and
(B) the payments made by the Secretary
to the Trust Fund under subsection (i).
(2) EXPENDITURES.—Amounts in the Trust
Fund shall be available to the Secretary, to the ex-
tent provided for in advance in an appropriations
Act, to carry out this section.
(f) ADMINISTRATIVE AND INCREASED FOOD ASSIST-
ANCE COSTS.—The Secretary shall use amounts in the
Trust Fund to cover—
(1) administrative costs incurred by the Sec-
retary and Boards in carrying out this section; and
(2) the increased cost of any milk and milk
products provided under any food assistance pro-
gram administered by the Secretary that results
from carrying out this section.
(g) PAYMENTS
FROM
PROCESSORS
TO
TRUST
FUND.—
(1) IN GENERAL.—During any month for which
the Secretary estimates that the average price paid
by processors for Class I milk in a District will not
exceed a target price applicable to that District, each
processor in a participating State in the District
that purchases Class I milk from an eligible pro-
ducer during the month shall pay to the Secretary
for deposit in the Trust Fund an amount obtained
by multiplying—
(A) the payment rate determined under
subparagraph (B); by
(B) the quantity of Class I milk purchased
from the eligible producer during the month.
(2) PAYMENT RATE.—The payment rate for a
payment made by a processor that purchases Class
I milk in a participating State in a District under
paragraph (1)(A) shall be equal to—
(A) in the case of a marketing area in the
District, the difference between the target price
for that marketing area and the minimum price
required to be paid to eligible producers for
Class I milk in that marketing area; and
(B) in the case of an area in the District
not covered by an order, the difference between
the target price for the area and the minimum
price determined by the Secretary, taking into
account the minimum price referred to in sub-
paragraph (A) in adjacent marketing areas.
(h) TARGET PRICES.—For purposes of subsection
(g), the following target prices shall be in effect:
(1) $17.50 per hundredweight, in the case of
the Northeast marketing area.
(2) $17.35 per hundredweight, in the case of
the Appalachian marketing area.
(3) $18.25 per hundredweight, in the case of
the Florida marketing area.
(4) $17.35 per hundredweight, in the case of
the Southeast marketing area.
(5) $16.05 per hundredweight, in the case of
the Upper Midwest marketing area.
(6) $16.25 per hundredweight, in the case of
the Central marketing area.