Resolve, Authorizing Adjustments to Payments under the Dairy Stabilization Program
Maine Legislature, Session 125, LD 0382
Committee: Agriculture, Conservation and Forestry
Sponsors: MARTIN, SAVIELLO, BRIGGS, COTTA, LONG, NELSON, SCHNEIDER

Legislative Document 
No. 382 
H.P. 308 
House of Representatives, February 8, 2011 
Resolve, Authorizing Adjustments to Payments under the Dairy 
Stabilization Program 
(EMERGENCY) 
Reference to the Committee on Agriculture, Conservation and Forestry suggested and 
ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative MARTIN of Eagle Lake. 
Cosponsored by Senator SAVIELLO of Franklin and 
Representatives: BRIGGS of Mexico, COTTA of China, LONG of Sherman, McCABE of 
Skowhegan, NELSON of Falmouth, Senator: SCHNEIDER of Penobscot. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, it is in the State’s economic interest to maintain a viable dairy industry; 
and  
Whereas, payments under the dairy stabilization program are crucial to Maine dairy 
farmers during periods of low milk prices in a regulated market; 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 
Sec. 1.  Cap on transfers for the dairy stabilization program in fiscal year 
2011-12. Resolved: That, notwithstanding the Maine Revised Statutes, Title 7, section 
3153-D, in fiscal year 2011-12 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 would bring the total amount transferred in fiscal year 2011-12 above 
$9,835,826.  Notwithstanding Title 7, section 3153-B, subsection 4, in fiscal year 2011-
the administrator of the Maine Milk Pool may not distribute payments for dairy 
stabilization support that in the aggregate exceed $9,835,826; and be it further 
Sec. 2.  Target prices and tier production levels.  Resolved: That the target 
prices and tier production levels used to calculate distribution payments under this resolve 
are as provided in PL 2009, chapter 467, section 9; and be it further 
Sec. 3.  Administrator authorized to make adjustments to monthly dairy 
stabilization payments during the period from July 1, 2011 to June 30, 2012. 
Resolved: That during the period from July 1, 2011 to June 30, 2012 the administrator 
of the Maine Milk Pool shall monitor milk price projections and each month calculate the 
total dairy stabilization support to be paid out under the Maine Revised Statutes, Title 7, 
section 3153-B, subsection 4 in fiscal year 2011-12 based on these projections. 
Notwithstanding Title 7, section 3153-B, subsection 4, the administrator may adjust 
the amount requested and the amount distributed in any month during fiscal year 2011-12 
based on the most recent projections and calculations made under this section. The 
administrator may reduce payments only if projections indicate that without an 
adjustment the total distributions under the stabilization program in fiscal year 2011-12 
would exceed $9,835,826.  When adjustments in payments are authorized, the 
administrator of the Maine Milk Pool shall calculate payments in accordance with 
sections 4 and 5 of this resolve and each month certify to the State Controller the amounts 
to be transferred; and be it further 
Sec. 4.  Calculation of payments in July, August and September. 
Resolved:  That, when adjustments are authorized under section 3 of this resolve, the 
administrator of the Maine Milk Pool shall calculate and distribute payments in July, 
August and September 2011 on milk produced in June, July and August 2011, 
respectively, as follows: 
1. The administrator shall assign each producer to one of 4 tiers based on that 
producer’s total production during the 12-month period beginning June 1, 2010 and 
ending May 31, 2011, with tier 1 being the lowest production and tier 4 the highest; and 
2. Upon receiving the monthly production data, the administrator shall: 
A.  Calculate the amount of money due each producer in accordance with the Maine 
Revised Statutes, Title 7, section 3153-B, subsection 4; and 
B.  Reduce each producer's payment by a percentage that results in: 
(1) Each producer within a tier receiving the same percentage reduction in 
payment for the 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; and be it further 
Sec. 5.  Calculation of monthly payments in October 2011 to June 2012.  
Resolved:  That when adjustments are authorized under section 3 of this resolve, the 
administrator of the Maine Milk Pool shall calculate and distribute payments in the 
months of October 2011 to June 2012 for milk produced in the months of September 
2011 to May 2012 by reducing the target price for each tier by the same percentage. 
Emergency clause.  In view of the emergency cited in the preamble, this resolve 
takes effect when approved. 
SUMMARY 
This resolve authorizes the administrator of the Maine Milk Pool to adjust payments 
under the dairy stabilization program in fiscal year 2011-12 when projections indicate 
that payments will exceed $9,835,826.  This figure is the Revenue Forecasting 
Committee’s December 2010 recommendation for transfer from the General Fund to the 
Maine Milk Pool in fiscal year 2011-12.  This resolve directs the administrator to reduce 
payments by the same percentage for each tier for the months from October 2011 to June 
2012.  It provides for progressively greater reductions between tiers for payments 
distributed in July, August and September.