(13) The term ‘‘Trust Fund’’ means the Na-
tional Dairy Producers Trust Fund. 
(c) PARTICIPATING STATES.—
(1) SPECIFIED STATES.—The following States 
are participating States for purposes of the program 
authorized by this section: Alabama, Arkansas, Con-
necticut, Delaware, Georgia, Kansas, Kentucky, 
Louisiana, Maine, Maryland, Massachusetts, Mis-
sissippi, Missouri, New Hampshire, New Jersey, 
New York, North Carolina, Oklahoma, Pennsylvania, 
Rhode Island, South Carolina, Tennessee, Vermont, 
Virginia, and West Virginia. 
(2) OTHER STATES.—The Governor of a State 
not specified in paragraph (1) may designate the 
State as a participating State by providing notice to 
the Secretary in the manner prescribed by the Sec-
retary. 
(3) WITHDRAWAL.—To withdraw a State from 
participation in the program, the Governor of the 
State (with the concurrence of the legislature of the 
State) shall provide written notice to the Secretary 
of the withdrawal of the State. 
(4) EFFECTIVE DATE OF WITHDRAWAL.—The 
withdrawal of a State from participation in the pro-
gram takes effect—
(A) in the case of written notice provided 
during the 180-day period beginning on the 
date of the enactment of this Act, on the date 
on which the notice is provided to the Secretary 
under paragraph (3); and 
(B) in the case of written notice provided 
after such period, on the date that is one year 
after the date on which the notice is provided 
to the Secretary under paragraph (3). 
(5) EFFECT OF PARTICIPATION ON ELIGIBILITY 
FOR OTHER DAIRY PROGRAMS.—Eligible producers 
operating in a participating State may not receive 
payments under section 1502 of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 7982), 
notwithstanding any contract entered into under 
subsection (b) of such section before the date of the 
enactment of this Act. Payments made under such 
a contract before such date shall not be recovered, 
but no further payments shall be made under the 
contract. 
(d) REGIONAL DAIRY DISTRICTS.—The Secretary 
shall establish five Regional Dairy Districts that are com-
posed of the following participating States: 
(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. 
(e) REGIONAL DAIRY BOARDS.—
(1) IN GENERAL.—Each District shall be ad-
ministered by a Regional Dairy 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. 
(f) 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 (h). 
(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.
(g) PAYMENTS FROM COVERED PROCESSORS
TO 
TRUST FUND.—
(1) PAYMENTS REQUIRED.—During any month 
for which the Class I mover is less than $14.25, 
each covered processor that purchases Class I milk 
during the month that will be sold in a participating 
State shall pay to the Secretary for deposit in the 
Trust Fund an amount obtained by multiplying—
(A) the difference between $14.25 per hun-
dredweight and the Class I mover; by 
(B) the quantity of Class I milk purchased 
from eligible producers during the month. 
(2) COMPENSATORY
PAYMENTS.—The Sec-
retary shall promulgate regulations requiring per-
sons who sell Class I milk into a participating State 
to make compensatory payments into the Trust 
Fund with respect to all such milk to the extent nec-
essary to equalize the cost of milk purchased by per-
sons subject to paragraph (1). In no case may a 
compensatory payment be required on Class I milk 
on which a payment has been made under paragraph 
(1). 
(h) COUNTER-CYCLICAL
PAYMENTS
FROM
SEC-
RETARY TO TRUST FUND.—If the average price for Class 
III milk during a month is less than $13.25 per hundred-
weight, the Secretary shall use the funds, facilities, and 
authorities of the Commodity Credit Corporation (in such 
amounts as may be necessary) to make a payment each 
month to the Trust Fund in an amount determined by 
multiplying—
(1) 25 percent of the difference between $13.25 
per hundredweight and the weighted average of the 
price received by producers in each participating 
State for Class III milk during the month, as deter-
mined by the Secretary; by 
(2) the quantity of eligible production of Class 
II, Class III, and Class IV milk produced in the var-
ious participating States during the month, as deter-
mined by the Secretary. 
(i) COMPENSATION FROM TRUST FUND FOR ADMIN-
ISTRATIVE AND INCREASED FOOD ASSISTANCE COSTS.—
The Secretary shall use amounts in the Trust Fund to 
provide compensation—
(1) to the Secretary for administrative costs in-
curred by the Secretary and Boards in carrying out 
this section; 
(2) to the Secretary to cover the increased cost 
of any milk and milk products provided under any 
food assistance program administered by the Sec-
retary that results from carrying out this section; 
and 
(3) to each State for the increased costs in-
curred by the State of any milk or milk products 
provided under the Special Supplemental Nutrition 
Program for Women, Infants, and Children estab-
lished by section 17 of the Child Nutrition Act of 
1966 (42 U.S.C. 1786) that results from carrying 
out this section 
(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 
(i) 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 in the District during the month bears to el-
igible production sold in all Districts. 
(k) PAYMENTS BY BOARDS TO PRODUCERS.—
(1) IN
GENERAL.—With the approval of the 
Secretary, a Board of a District shall use payments 
received under subsection (j) to make payments to
eligible producers for eligible production of milk that 
is produced in a participating State in the District. 
(2) LIMITATION.—An eligible producer may not 
receive payments under this subsection on produc-
tion in excess of 500,000 pounds of milk per month 
(3) SUPPLY
MANAGEMENT.—In carrying out 
paragraph (1), a Board of a District may—
(A) use a portion of the payments de-
scribed in paragraph (1) to provide bonuses or 
other incentives to eligible producers for eligible 
production to manage the supply of milk pro-
duced in the District; and 
(B) request the Secretary to review a pro-
posed action under subparagraph (A). 
(4) REIMBURSEMENT OF COMMODITY CREDIT 
CORPORATION.—
(A) IN GENERAL.—If the Secretary deter-
mines that the Commodity Credit Corporation 
has incurred additional costs in a fiscal year to 
carry out section 1501 of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 
7981) as a result of overproduction of milk in 
a District due solely to the operation of this 
section in that District, the Secretary shall re-
quire the Board of that District to reimburse
the Commodity Credit Corporation for the addi-
tional costs. The amount of any reimbursement 
by a Board under this subparagraph is limited 
to the amount that would otherwise be available 
to the Board to make payments to producers 
under subsection (j). 
(B) BOARD ASSESSMENT.—The Board of 
the District may impose an assessment on pro-
ducers within participating States in the Dis-
trict to compensate the Commodity Credit Cor-
poration for the additional costs.
Æ