Sec. 1434. Calculation and collection of reduced dairy operation payments

341 words·~2 min read·/bill/113/s/954/pcs/section-1434

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During any month in which payment reductions are in effect under the stabilization program, each handler shall reduce payments to each participating dairy operation from whom the handler receives milk. If the Secretary determines that the average actual dairy production margin has been less than $6.00 but greater than $5.00 per hundredweight of milk for 2 consecutive months, the handler shall make payments to a participating dairy operation for a month based on the greater of the following: 98 percent of the stabilization program base of the participating dairy operation. 94 percent of the marketings of milk for the month by the participating dairy operation.

If the Secretary determines that the average actual dairy production margin has been less than $5.00 but greater than $4.00 for 2 consecutive months, the handler shall make payments to a participating dairy operation for a month based on the greater of the following: 97 percent of the stabilization program base of the participating dairy operation. 93 percent of the marketings of milk for the month by the participating dairy operation. If the Secretary determines that the average actual dairy production margin has been $4.00 or less for any 1 month, the handler shall make payments to a participating dairy operation for a month based on the greater of the following: 96 percent of the stabilization program base of the participating dairy operation. 92 percent of the marketings of milk for the month by the participating dairy operation.

The largest level of payment reduction required under paragraph (1), (2), or

(3)of subsection

(b)shall be continued for each month until the Secretary suspends the stabilization program and terminates payment reductions in accordance with section 1436. Notwithstanding any preceding subsection of this section, a handler shall make no payment reductions for a participating dairy operation for a month if the participating dairy operation’s milk marketings for the month are equal to or less than the percentage of the stabilization program base applicable to the participating dairy operation under paragraph (1), (2), or

(3)of subsection (b).