12 2 STA T .9 9 5PUBLIC LA W 11 0– 2 34—M A Y 22 , 200 8(1)CLAS S IM IL K.—Thet e rm‘ ‘C las s I m i l k’ ’ mea n s milk (in c l ud in g milk c o m p onents) classi f ied as Class I milk under a F ederal milk marketing order. ( 2 ) E LI G I B L EPRODUCT IO N .—The term ‘‘eligi b le production’’ means milk produced b y a producer in a participating S tate. ( 3 ) FEDERAL MILK MARKETING ORDER.—The term ‘‘Federal milk marketing order’’ means an order issued under section 8 cofthe A gricultural Ad j ustment Act ( 7U .S.C. 60 8c) , reenacted w ith amendments by the Agricultural M arketing Agreement Actof1 9 37. ( 4 ) P ARTICIPATING STATE.—The term ‘‘participating State’’ means each State. ( 5 ) PRODUCER.—The term ‘‘producer’’ means an indi v idual or entity that directly or indirectly (as determined by the Sec - retary)— (A) shares in the risk of producing milk
and ( B ) makes contributions (including land, labor, management, e q uipment, or capital) to the dairy farming operation of the individual or entity that are at least commensurate with the share of the individual or entity of the proceeds of the operation. (b) PA Y MENTS.—The Secretary shall offer to enter into contracts with producers on a dairy farm located in a participating State under which the producers receive payments on eligible production. (c) AMOUNT.—Payments to a producer under this section shall be calculated by multiplying (as determined by the Secretary)— (1) the payment quantity for the producer during the applicable month established under subsection (e); (2) the amount equal to— (A) $ 16.94 per hundredweight, as adjusted under sub- section (d); less (B) the Class I milk price per hundredweight in Boston under the applicable Federal milk marketing order; by (3)(A) for the period beginning O ctober 1, 2007, and ending September 30, 2008, 34 percent; (B) for the period beginning October 1, 2008, and ending August 31, 2012, 45 percent; and (C) for the period beginning September 1, 2012, and there- after, 34 percent. (d) PAYMENT R ATE AD J USTMENT F OR FEED PRICES.— (1) INITIAL ADJUSTMENT AUT H ORITY.— D uring the period beginning on J anuary 1, 2008, and ending on August 31, 2012, if the N ational Average Dairy Feed Ration Cost for a month during that period is greater than $7.35 per hundredweight, the amount specified in subsection (c)(2)(A) used to determine the payment rate for that month shall be increased by 45 percent of the percentage by which the National Average Dairy Feed Ration Cost e x ceeds $7.35 per hundredweight. (2) SUBSE Q UENT ADJUSTMENT AUTHORITY.—For any month beginning on or after September 1, 2012, if the National Aver- age Dairy Feed Ration Cost for the month is greater than $9.50 per hundredweight, the amount specified in subsection (c)(2)(A) used to determine the payment rate for that month shall be increased by 45 percent of the percentage by which the National Average Dairy Feed Ration Cost exceeds $9.50 per hundredweight. Timep e r i od.C o nt r ac t s .
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