12 2 STA T . 1 7 2 3PUBLIC LA W 11 0– 2 46—J U NE 1 8, 2008 ‘ ‘ (i)det e rm i n et h e av era g em o nth lyp ri c e s o f feed and f u el incurred b y dairy producers in the relevant mar k eting area
‘‘(ii) consider the most recent monthly feed and fuel price data available; and ‘‘(iii) consider those prices in determining w hether ornottoad j ust make allowances .’ ’. SEC.150 5. DAIRY I N DE M NI T Y P R OG RAM. S ection 3 of P ublic L aw 90–48 4( 7U .S. C . 4 5 0l) is amended by striking ‘‘ 2 007’’ and inserting ‘‘20 1 2’’. SEC. 150 6 .MI LK INCOME LOSS CONTRACT PROGRAM. (a) DEFIN I T I O N S . —I n this section
(1) C LA SSI M IL K .— T he term ‘‘Class I milk’’ means milk (including milk components) classified as Class I milk under a F ederal milk marketing order. (2) E LI G I B LE PR O DUC TION.—The term ‘‘eligible production’’ means milk produced by a producer in a participating State. (3) FEDERAL MILK MARKETING ORDER.—The term ‘‘Federal milk marketing order’’ means an order issued under section 8c of the A gricultural Adjustment Act (7 U.S.C. 6 08c) , reenacted with amendments by the Agricultural M arketing Agreement Act of 1937. (4) PARTICIPATING STATE.—The term ‘‘participating State’’ means each State. (5) PRODUCER.—The term ‘‘producer’’ means an individual 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 FOR FEED PRICES.— (1) INITIAL ADJUSTMENT AUT H ORITY.—During 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, Timep e r i od.C o nt r ac t s . 7US C 8 77 3 .
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