An Act To Revise the Target Prices for the Dairy Stabilization Program
Maine Legislature, Session 125, LD 1905
Committee Amendment CA_A_H866 (House)

COMMITTEE AMENDMENT "Ii" to H.P. 1409, L.D. 1905, Bill, "An Act To 
Revise the Target Prices for the Dairy Stabilization Program" 
Amend the bill by striking out the title and substituting the following: 
'An Act Regarding the Dairy Stabilization Program' 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, all sectors of the dairy industry and rural economies are in jeopardy; and 
Whereas, revising target prices used in the dairy stabilization program is essential 
for a viable dairy industry; and 
Whereas, it is in the State's economic interest to maintain a viable dairy industry 
and in the public interest to have a secure food supply; 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. PL 2009, c. 467, §9 is repealed. 
Sec. 2. Interim target prices. Beginning July 1, 2012 and until the Maine Milk 
Commission updates the Maine producer cost-of-production data and adopts new tiers of 
production and target prices in accordance with the Maine Revised Statutes, Title 7, 
section 3153-B, subsection 3, the production levels for each tier and the target prices for 
milk producers in the State are as follows: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to H.P. 1409, L.D. 1905 
1. For the first 16,790 hundredweight produced per year by each producer, the target 
price is $23.91 per hundredweight; 
2. For production from 16,791 hundredweight to 49,079 hundredweight per year by 
each producer, the target price is $22.82 per hundredweight; 
3. For production from 49,080 hundredweight to 76,800 hundredweight per year by 
each producer, the target price is $19.67 per hundredweight; and 
4. For production in excess of 76,800 hundredweight per year by each producer, the 
target price is $19.39 per hundredweight. 
Sec. 3. Transfers for the dairy stabilization program in fiscal years 2012-
13, 2013-14 and 2014-15. 
Notwithstanding the Maine Revised Statutes, Title 7, 
section 3153-D, in fiscal years 2012-13, 2013-14 and 2014-15, the administrator of the 
Maine Milk Pool may not certify any amount to be transferred from the General Fund for 
distributions under Title 7, section 3153-B that exceeds resources allocated by the 
Legislature. 
Notwithstanding Title 7, section 3153-B, in fiscal years 2012-13, 2013-14 and 2014-
15, the administrator of the Maine Milk Pool may not distribute payments for dairy 
stabilization support that in the aggregate exceed resources allocated by the Legislature. 
Sec. 4. Administrator authorized to make monthly adjustments during 
the period from July 1, 2012 to June 30, 2013. During the period from July 1, 
2012 to June 30, 2013, the administrator of the Maine Milk Pool shall monitor milk price 
projections and each month calculate the amounts to be paid out under the dairy 
stabilization program under the Maine Revised Statutes, Title 7, section 3153-B for fiscal 
year 2012-13 based on these projections. The administrator may adjust the amount 
requested and the amount distributed in any month during this period based on the most 
recent projections and calculations. The administrator may reduce payments only if 
projections indicate that the total distributions under the dairy stabilization program will 
exceed resources allocated by the Legislature for fiscal year 2012-13. 
If projections indicate that total distributions for fiscal year 2012-13 will exceed 
allocated resources, the administrator shall adjust payments distributed in October 2012 
to June 2013 on milk produced in the months of September 2012 to May 2013 by 
mUltiplying the target price for each tier by the same percent. If projections indicate that 
total distributions for fiscal year 2012-13 will exceed allocated resources, the 
administrator shall adjust payments distributed in July, August and September 2012 on 
milk produced in June, July and August 2012, respectively, in accordance with sections 7 
and 8. 
Sec. 5. Administrator authorized to make monthly adjustments during 
the period from July 1, 2013 to June 30, 2014. During the period from July 1, 
2013 to June 30, 2014, the administrator of the Maine Milk Pool shall monitor milk price 
projections and each month calculate the amounts to be paid out under the dairy 
stabilization program under the Maine Revised Statutes, Title 7, section 3153-B for fiscal 
year 2013-14 based on these projections. The administrator may adjust the amount 
requested and the amount distributed in any month during this period based on the most 
recent projections and calculations. The administrator may reduce payments only if 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" An to H.P. 1409, L.D. 1905 
proje8tions indicate that the total distributions under the dairy stabilization program will 
exceed resources allocated by the Legislature for fiscal year 20l3-14. 
If projections indicate that total distributions for fiscal year 20l3-14 will exceed 
allocated resources, the administrator shall adjust payments distributed in October 2013 
to June 2014 on milk produced in the months of September 2013 to May 2014 by 
multiplying the target price for each tier by the same percent. If proj ections indicate that 
total distributions for fiscal year 20l3-14 will exceed allocated resources, the 
administrator shall adjust payments distributed in July, August and September 2013 on 
milk produced in June, July and August 20l3, respectively, in accordance with sections 7 
and 8. 
Sec. 6. Administrator authorized to make monthly adjustments during 
the period from July 1, 2014 to June 30, 2015. During the period from July 1, 
2014 to June 30,2015, the administrator of the Maine Milk Pool shall monitor milk price 
projections and each month calculate the amounts to be paid out under the dairy 
stabilization program under the Maine Revised Statutes, Title 7, section 3153-B for fiscal 
year 2014-15 based on these projections. The administrator may adjust the amount 
requested and the amount distributed in any month during this period based on the most 
recent projections and calculations. The administrator may reduce payments only if 
proj ections indicate that the total distributions under the dairy stabilization program will 
exceed resources allocated by the Legislature for fiscal year 2014-15. 
If projections indicate that total distributions for fiscal year 2014-15 will exceed 
allocated resources, the administrator shall adjust payments distributed in October 2014 
to June 2015 on milk produced in the months of September 2014 to May 2015 by 
multiplying the target price for each tier by the same percent. If projections indicate that 
total distributions for fiscal year 2014-15 will exceed allocated resources, the 
administrator shall adjust payments distributed in July, August and September 2014 on 
milk produced in June, July and August 2014, respectively, in accordance with sections 7 
and 8. 
Sec. 7. Calculation of payments for milk produced. Notwithstanding the 
Maine Revised Statutes, Title 7, section 3153-B, the administrator of the Maine Milk 
Pool shall calculate and make payments to milk producers in the State in accordance with 
this section for milk produced from June 1st to August 31 st in 2012, 2013 and 2014. 
1. No later than June 15th in 2012, 2013 and 2014, the administrator of the Maine 
Milk Pool shall assign each producer to one of 4 tiers based on that producer's total 
production during the 12-month period beginning June 1st and ending May 31st of that 
year. 
2. Upon receiving the production data for June ofthat year, the administrator shall: 
A. Calculate the amount of money due each producer in accordance with Title 7, 
. section 3153-B, subsection 4; 
B. Reduce each producer'S payment by a percentage established in section 8; and 
C. Certify to the State Controller the amounts to be transferred and distributed. 
COMMITTEE AMENDMENT 
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5. 
COMMITTEE AMENDMENT" An to H.P. 1409, L.D. 1905 
3. The administrator shall calculate payments for milk produced in July of 2012, 
2013 and 2014 and milk produced in August of 2012, 2013 and 2014 in the manner 
prescribed in subsection 2, paragraphs A, Band C. 
Sec. 8. Reductions in payments for milk. The administrator of the Maine Milk 
Pool shall determine the percentaKe reduction .in payments requir~d under section 7, 
subsection 2, paragraph B Ina mann'ei:-thcit-resliffs·:in: . .. .. , - -: .. . 
1. Each producer within a tier receiving the same percentage reduction in payment 
for a month as other producers in that tier receive for that month; and 
2. Percentage reductions between adjacent tiers in a ratio of 1 to 2, progressing from 
tier 1 to tier 4. 
Sec. 9. ReduCtions not authorized after June 30, 2015. The· administrator of 
the Maine Milk Po~I-may not use authority under sections 4 to 7 to redu<~e payments after 
June 30, 2015. 
. 
Sec. 10. Effective date. That section of this Act that repeals Public Law 2009, 
chapter 467, section 9 takes effect July 1,2012. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved, except as otherwise indicated.' 
SUMMARY 
This amendment is the minority report of the Joint Standing Committee on 
Agriculture, Conservation and Forestry authorized under Public Law 2009, chapter 467, 
section 16. It revises the target prices used to calculate dairy stabilization payments 
under the Maine Revised Statutes, Title 7, section 3153-B. It prohibits the distribution of 
payments in excess:ofallocated resources for fiscal year 2012-13, fiscal year 2013-14 and 
fiscal year 2014-15. It authorizes the administrator of the Maine Milk Pool to calculate 
and distribute reduced- payments if projections indicate the allocated resources would 
otherwise be exceeded. It specifies that, if needed, reductions in payments received in 
July, August and Septemoer of 2012,2013 and 2014 on milk produced in June, July and 
August of that year are to be established at a 1:2 ratio between adjacent tiers. 
--~-COMMITTEE AMENDMENT