An Act to Stabilize the Maine Dairy Industry
Maine Legislature, Session 121, LD 0338
Committee: Agriculture, Conservation and Forestry
Sponsors: GAGNON
Amends: 7 MRSA §3153-A

Legislative Document 
No. 338 
S.P.120 
In Senate, January 28, 2003 
An Act to Stabilize the Maine Dairy Industry 
(EMERGENCY) 
Reference to the Committee on Agriculture, Conservation and Forestry suggested and 
ordered printed. 
Presented by Senator GAGNON of Kennebec. 
JOY J. O'BRIEN 
Secretary of the Senate 
Under suspension of the rules, cosponsored by Representative McKEE of Wayne and 
Senators: BRYANT of Oxford, HATCH of Somerset, KNEELAND of Aroostook, MAYO of 
Sagadahoc, MITCHELL of Penobscot, ROTUNDO of Androscoggin, STANLEY of 
Penobscot, WESTON of Waldo, Representatives: CARR of Lincoln, CLARK of Millinocket, 
CLOUGH of Scarborough, COWGER of Hallowell, DA VIS of Falmouth, DUPREY of 
Medway, GOODWIN of Pembroke, HATCH of Skowhegan, JACKSON of Fort Kent, 
JODREY of Bethel, JOY of Crystal, KAELIN of Winterport, MILLS of Cornville, PATRICK 
of Rumford, PINEAU of Jay, PINGREE of North Haven, PIOTTI of Unity, ROSEN of 
Bucksport, SA VIELLO of Wilton, SHERMAN of Hodgdon, SMITH of Monmouth, SNOWE-
MELLO of Poland, TARDY of Newport, THOMPSON of China, USHER of Westbrook, 
WOTTON of Littleton. 
Printed on recycled paper 
Emergency preamble. Whereas. Acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, the average short-term cost of milk production in 
the State has been determined by the Maine Milk Commission to be 
approximately $17 per hundredweight; and 
Whereas, the blended price of milk to the State's dairy 
farmers has fallen to approximately $13 per hundredweight; and 
Whereas, the State's dairy farmers 
can not continue 
to 
operate at prices below their cost of milk production; and 
Whereas, the State may lose as many as 113 of its dairy 
farms in the near future; and 
Whereas, a collapse of the State's dairy industry will have 
a significant adverse effect on related parts of the State's 
economy, 
including 
equipment 
dealers, 
agricultural 
supply 
businesses, 
fuel 
oil 
dealers, 
fertilizer 
dealers, 
insurance 
agencies and others; and 
Whereas, the anticipated loss of dairy 
farms 
and 
other 
related businesses will have significant adverse effects on the 
economy of rural and inland Maine, 
jeopardize maintenance of 
valuable open space and compound existing problems of sprawl; and 
Whereas, the State's dairy industry needs immediate economic 
relief to remain viable until milk prices come back into line 
with costs of production; and 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 7 MRSA §3153-A is enacted to read: 
§3153-A. 
Dairy stabilization subsidy 
The 
Maine 
Milk 
Commission 
shall distribute 
funds 
on 
a 
monthly basis to the State's dairy farmers as a direct subsidy on 
a per hundredweight basis at the rate of 50'l-o of the difference 
between $17 per hundredweight and the base price of milk per 
hundredweight for each month. 
The base price of milk is the 
Suffolk County, Massachusetts statistical blend piice of milk as 
determined for each month by the Northeast Market Administrator 
of 
the 
United States 
Department 
of 
Agriculture. 
The 
total 
subsidy 
distributions 
under 
this 
section 
may 
not 
exceed 
$1,100,000 in any single month. 
Distributions to dairy farmers 
under this section are limited to amounts appropriated for that 
purpose. 
Sec. 
2. 
Appropriations 
and 
allocations. 
The 
following 
appropriations and allocations are made. 
AGRICULTURE, FOOD AND RURAL RESOURCES, 
DEPARTMENT OF 
Maine Milk Commission 
Initiative: 
Provides funds to the Maine Milk Commission to be 
deposited in the Maine Milk Pool created in the Maine Revised 
Statutes, Title 7, 
section 3153 to be distributed to Maine 
dairy farmers pursuant to Title 7, section 3153-A. 
Any balance 
of this appropriation remaining after June 30, 2003 is carried 
forward 
by 
the 
Department 
of 
Agriculture, 
Food 
and 
Rural 
Resources to the succeeding fiscal year for distribution to 
Maine dairy farmers pursuant to Title 7, section 3153-A. 
General Fund 
All Other 
2002-03 
$5,500,000 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved. 
SUMMARY 
This bill establishes a program of direct subsidy payments 
to the State's dairy farmers through the Maine Milk Pool when the 
basic 
price 
of 
milk 
at 
the 
farm 
falls 
below 
the 
average 
short-term cost of milk production in the State as determined by 
studies 
performed 
for 
the 
Maine 
Milk 
Commission. 
The 
supplemental 
appropriation 
for 
this 
purpose 
in 
fiscal 
year 
2002-03 is $5,500,000.