97 STAT. 1130 PUBLIC LAW 98-180—NOV. 29, 1983 Milk reduction plan, submittal to Secretary. Contract requirements. Ante, p. 1128. Payment. beginning on January 1, 1984. Each producer of milk in the United States seeking to enter into a contract for diversion payments under this paragraph shall, prior to entering into such contract, provide the Secretary with a plan that (i) describes the manner in which the producer intends to achieve the reduction in milk marketings that would be required under such contract, and (ii) includes an estimate by the producer of the amount of such reduction which the producer intends to achieve through increased slaughter of dairy cattle (including the approximate number of dairy cattle that will be sold for slaughter during each month of the contract). In setting the terms and conditions of such contracts, the Secretary shall take into account any adverse impact of the reductions in milk production on beef, pork, and poultry producers in the United States and shall take all feasible steps to minimize such impact. "(B) Each such contract shall require that— "(i) the producer shall reduce the quantity of milk mar- keted for commercial usc in an amount equal to a percent- age specified by the producer, but not less than 5 per centum nor more than 30 per centum, of the quantity of milk marketed by such producer for commercial usc during the marketing history period described in subparagraph (F); "(ii) any production capacity of a facility that becomes available for usc because a producer reduces milk produc- tion in order to comply with the contract shall not be used by the producer, or made available by the producer for usc by any other person, for the production of milk; "(iii) any dairy cattle that would or could have been used by the producer for the production of milk if the producer had not entered into and complied with such contract shall not have been sold, leased, or otherwise transferred to another person after November 8, 1983, except as permitted by the Secretary up to the date of enactment of the Dairy Production Stabilization Act of 1983 in order to further the purposes of this Act, or unless such cattle are sold for slaughter or sold or transferred to another producer with respect to whom there is in effect a contract entered into under this subsection, except that the Secretary may, to the extent practicable and to the extent deemed consistent with the goals of the diversion program, permit the sale of registered, purebred cattle for breeding purposes subject to such terms and conditions as the Secretary may prescribe based on a history of such sales by the producer or the sale or transfer of any dairy cattle if the Secretary determines that such sale or transfer does not result in adversely affecting the purpose of the program; and "(iv) the producer shall repay to the Secretary the entire payment received under this paragraph, including simple interest payable at a rate prescribed by the Secretary which shall, to the extent practicable, reflect the cost to the Corporation of its borrowings from the United States Treas- ury, commencing on the date payment is first received under this paragraph, if the producer fails to comply with such contract. "(C) Except as provided in subparagraph (D), the Secretary shall pay to a producer who complies with a contract, entered into under this paragraph, an amount equal to the product of
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