Resolve, Regarding Legislative Review of Chapter 26: Producer Margins, a Major Substantive Rule of the Maine Milk Commission
Maine Legislature, Session 131, LD 2188
Committee Amendment CA_A_H810 (House)

COMMITTEE AMENDMENT " f\ » to H.P. 1402, L,D. 2188, "Resolve, Regarding
Legislative Review of Chapter 26: Producer Margins, a Major Substantive Rule of the
Maine Milk Commission"
Amend the resolve in section 1 in the last line (page 1, line 17 in L.D.) by striking out
the followmg: "authorized." and inserting the following: 'authorized only if the following
changes are made to the 4 levels of target prices for milk producers:
1. For the first 16,790 hundredweight produced per year by each producer, the target
price is $24,5 1 per hundredweight;
2, For production over 16,790 hundredweight to 49,079 hundredweight per year, the
target price is $23.37 per hundredweight;
3, For production over 49,079 hundredweight to 76,800 hundredweight per year, the
target price is $22.60 per hundredweight; and
4, For production over 76,800 hundredweight per year, the target price is $21,88 per
hundredweight.
Sec. 2. Appropriations and allocations. Resolved: That the following
appropriations and allocations are made.
AGRICULTURE, CONSERVATION AND FORESTRY, DEPARTMENT OF
Milk Commission 0188
Initiative; Adjusts allocation from updating the cost of production and target prices used to
make payouts tb'ough the dairy stabilization, program,
OTHER SPECIAL REVENUE FUNDS 2023-24 2024-25
AllOther $0 $4,088,815
OTtffiR SPECIAL REVENUE FUNDS TOTAL $0 $4,088,815
COMMITTEE AMENDMENT
"A-
COMMITTEE AMENDMENT "/\;' to H.P. 1402, L.D. 2188
^ 1 Amend the resolve by relettering or renumbering any nonconsecutive Part letter or
section number to read consecutively,
SUMMARY
This amendment authorizes adoption of Chapter 26: Producer Margins, a provisionally
adopted major substantive rule of the Maine Milk Commission, only if the following
changes are made to the 4 levels of target prices for milk producers:
1. For the first 16,790 hundredweight produced per year by each producer, the target
price is $24.51 per hundredweight;
2. For production over 16,790 hundredweight to 49,079 hundredweight per year, the
target price is $23.37 per hundredweight;
3, For production over 49,079 hundredweight to 76,800 hundredweight per year, the
target price is $22.60 per hundredweight; and
4. For production over 76,800 hundredweight per year, the target price is $21,88 per
hundredweight.
The amendment also adds an appropriations and allocations section.
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Revised: 03/01/24 ^^C-
LD 2188 LR 3036(02)
Resolve, Regarding Legislative Review of Chapter 26: Producer Margins, a Major Substantive Rule of
the Maine Milk Commission
Fiscal Note for Bill as Amended by Committee Amendment ^ [ ^^,
Committee: Agriculture, Conservation and Forestry
Fiscal Note Required: Yes
Fiscal Note
Projections FY Projections FY
FY 2023-24 FY 2024-25 2025-26 2026-27
Net Cost (Savings)
General Fund
Appropriations/Allocations
Other Special Revenue Funds
Revenue
General Fund
Other Special Revenue Funds
$0 ($26,087,585) ($26,294,402) ($26,282,483)
$0 $4,088,815 $7,675,219 $9,413,714
$0
$0
$26,087,585
($26,087,585)
$26,294,402
($26,294,402)
$26,282,483
($26,282,483)
Fiscal Detail and Notes
This bill modifies and adopts a Maine Milk Commission mle that updates the producer margins for target prices within
the tiers used to make payouts through the Dairy Stabilization Program. The March 2024 Report of the Revenue
Forecasting Committee (RFC) includes an assumption of target prices set at 100% of the 2022 cost of production study,
This bill adjusts those prices downward to 25% of the difference between the 2019 producer margins and the 2022
producer margins. This change will decrease the transfer from the General Fund to the tier program, which -will increase
General Fund revenue by $26,087,585 in fiscal year 2024-25 and decrease Other Special Revenue Funds revenue to the
Milk Commission within the Department ofAgri.culfa.ire, Conservation and Forestry by the same amount. The bill
includes allocations of $4,088,815 in fiscal year 2024-25 to make increased payouts through the program.
RFC of March 1, 2024
@Tier Target Prices ($28.90,
Dairy Stabilization Program
Transfer From Oxford Slot
Transfer from General Fund
$29,17, $27.61, $26.87)
FY 2024-25
35,476,316
(465,182)
35,011.134
FY 2025-26
45,368,943
(476,812)
44,892,131
FY 2026-27
47,100,389
(488,732)
46,611,657
LD 2188 reduction of tier prices
I ©Tier Target Prices ($24.51, $23,37, $22.60, $21.88)
(26,087,585) (26,294,402) (26,282,483)
Net General Fund transfer to Dairy Stabilization Program
8,923,549
18,597,729
20,329,174
This bill involves a major substantive rule. Under the provisions of the Maine Adi-oinistrative Procedures Act, if the
Legislatu-e fails to take specific action either authorizing or disapproving the adoption of the rule or part of the mle, the
Maine Milk Commission will be authorized to finally adopt the rule.
LR3036(02) - Fiscal Note - Page 1 of 1