27:1 Findings. The general court finds that many New Hampshire permitted or licensed milk producers have suffered significant financial loss as a result of diminished crops due to the drought during 2016. As a result, several permitted or licensed milk producers have ceased milk production. These farms enhance our natural landscape through their pastures, forests, and agricultural structures, from which our citizens derive great pleasure and to which so many of our tourists are attracted. Also locally-produced milk is important to the state's ability to feed itself and the farms on which milk is produced help maintain vital agricultural services in our communities.

27:2 New Subdivision; New Hampshire Dairy Producer Drought Relief Program. Amend RSA 184 by inserting after section 111 the following new subdivision:

New Hampshire Dairy Producer Drought Relief Program

184:112 Definitions. In this subdivision:

I. "Department" means the department of agriculture, markets, and food.

II. "Forages" means hay, haylage, silage, and pasture.

III. "Homegrown feed" means forages and grain, or a composite in any combination grown on land owned or leased by the producer.

IV. "New producer" means a producer who initiated milk production in 2016.

V. "Producer" means a dairy farmer, as permitted or licensed under this chapter, engaged in the business of producing milk in New Hampshire and sold wholesale or retail for any purpose.

184:113 Implementation.

I. In order to qualify for the New Hampshire dairy producer drought relief program, a producer shall complete and submit an application in which the department shall be provided proof of homegrown feed loss due to drought along with records of milk production for the 2016 calendar year.

II. The department shall design and provide such forms and applications as necessary to calculate and process the program and shall supply such forms and applications to any producer upon request.

III. Any producer electing to participate in the New Hampshire dairy drought relief program shall complete and submit an application no later than 30 days after the effective date of this subdivision.

IV. For the purposes of verification of an application and claim, such records and data kept by the producer or producer's agent, the United States Department of Agriculture Farm Service Agency, the United States Department of Agriculture Agricultural Marketing Service Dairy Marketing Program, the university of New Hampshire cooperative extension service, Dairy Marketing Services LLC, or the producer's lender, cooperative, insurance agent, crop insurance representative, or processor shall be provided to the department along with the completed application. The department shall review such records and data in support of an application.

V. A new producer's annual milk production for 2016 shall be prorated based on its actual milk production.

VI. The applicant producer shall sign a release allowing the department access to production and crop records and permit the department on-site access for program verification purposes. The producer shall allow the department to make random inspections and audits of records, as necessary, in order to verify production. Information provided to the department is proprietary to the producer and the department and is to be used solely for program verification and determining payment. In no way shall such information provided be made public except for (a) the percentage of homegrown feed loss approved by the department, and (b) total payment to the producer.

VII. The applicant producer shall sign a form provided by the department attesting, to the best of the producer's knowledge, that the records and data provided by the producer are accurate and truthful.

184:114 Calculation of Payment.

I. The homegrown cost of feed shall be $6.10 per hundredweight of milk produced.

II. To arrive at the amount to be paid to the producer, the cost of feed in paragraph I shall be multiplied by the percentage of homegrown feed loss in 2016 over either the year 2015 due to drought or the year 2014 due to drought, at the producer's discretion, and that product shall be multiplied further by the producer's total milk production in hundredweight of milk produced in 2016. There shall be subtracted from that amount any drought-related payments received by the producer from the federal government.

III. Proof of loss shall be in the form of a notice of loss or other typical documentation of loss from a competent authority, including but not limited to such agencies as the United States Department of Agriculture Farm Service Agency or crop insurance agent.

IV. If the amount appropriated for dairy producer drought relief by the general court is insufficient to pay each producer entirely and in whole in the manner as outlined in this section, any such final distribution shall be prorated and reduced proportionally for the benefit of all the producer applicants. The reduced amount shall then be distributed accordingly.

V. Any unexpended funds, after final distribution, shall be returned to the general fund.

VI. Should a producer cease to be a producer for any reason on or before December 31, 2020, the producer shall reimburse the state the entire amount paid to the producer under this program. The department of health and human services, dairy sanitation program (dairy sanitation) shall provide the department of justice a list of all permitted or licensed dairies. This list shall be provided on December 31 of each year from 2017 through 2020. Should the department of justice find that any producer is no longer permitted or licensed under this chapter by dairy sanitation then the department of justice shall collect reimbursement for the state of the amount paid to the producer.

VII. The administration and distribution of any funds appropriated for the purposes of this subdivision shall be administered by the department, which shall be exempt from the provisions of RSA 541-A.

27:3 Appropriation. There is hereby appropriated to the department of agriculture, markets, and food the sum of $2,000,000 for the fiscal year ending June 30, 2017 to pay milk producers permitted or licensed under RSA 184 for relief from the 2016 drought under RSA 184:112 through RSA 184:114.

27:4 Milk Producers Emergency Fund Board; Membership. Amend RSA 184:109, I(a) to read as follows:

(a) The commissioner, or designee.

27:5 Effective Date. This act shall take effect upon its passage.

Approved: April 25, 2017

Effective Date: April 25, 2017

27:1 Findings. The general court finds that many New Hampshire permitted or licensed milk producers have suffered significant financial loss as a result of diminished crops due to the drought during 2016. As a result, several permitted or licensed milk producers have ceased milk production. These farms enhance our natural landscape through their pastures, forests, and agricultural structures, from which our citizens derive great pleasure and to which so many of our tourists are attracted. Also locally-produced milk is important to the state's ability to feed itself and the farms on which milk is produced help maintain vital agricultural services in our communities.

27:2 New Subdivision; New Hampshire Dairy Producer Drought Relief Program. Amend RSA 184 by inserting after section 111 the following new subdivision:

New Hampshire Dairy Producer Drought Relief Program

184:112 Definitions. In this subdivision:

I. "Department" means the department of agriculture, markets, and food.

II. "Forages" means hay, haylage, silage, and pasture.

III. "Homegrown feed" means forages and grain, or a composite in any combination grown on land owned or leased by the producer.

IV. "New producer" means a producer who initiated milk production in 2016.

V. "Producer" means a dairy farmer, as permitted or licensed under this chapter, engaged in the business of producing milk in New Hampshire and sold wholesale or retail for any purpose.

184:113 Implementation.

I. In order to qualify for the New Hampshire dairy producer drought relief program, a producer shall complete and submit an application in which the department shall be provided proof of homegrown feed loss due to drought along with records of milk production for the 2016 calendar year.

II. The department shall design and provide such forms and applications as necessary to calculate and process the program and shall supply such forms and applications to any producer upon request.

III. Any producer electing to participate in the New Hampshire dairy drought relief program shall complete and submit an application no later than 30 days after the effective date of this subdivision.

IV. For the purposes of verification of an application and claim, such records and data kept by the producer or producer's agent, the United States Department of Agriculture Farm Service Agency, the United States Department of Agriculture Agricultural Marketing Service Dairy Marketing Program, the university of New Hampshire cooperative extension service, Dairy Marketing Services LLC, or the producer's lender, cooperative, insurance agent, crop insurance representative, or processor shall be provided to the department along with the completed application. The department shall review such records and data in support of an application.

V. A new producer's annual milk production for 2016 shall be prorated based on its actual milk production.

VI. The applicant producer shall sign a release allowing the department access to production and crop records and permit the department on-site access for program verification purposes. The producer shall allow the department to make random inspections and audits of records, as necessary, in order to verify production. Information provided to the department is proprietary to the producer and the department and is to be used solely for program verification and determining payment. In no way shall such information provided be made public except for (a) the percentage of homegrown feed loss approved by the department, and (b) total payment to the producer.

VII. The applicant producer shall sign a form provided by the department attesting, to the best of the producer's knowledge, that the records and data provided by the producer are accurate and truthful.

184:114 Calculation of Payment.

I. The homegrown cost of feed shall be $6.10 per hundredweight of milk produced.

II. To arrive at the amount to be paid to the producer, the cost of feed in paragraph I shall be multiplied by the percentage of homegrown feed loss in 2016 over either the year 2015 due to drought or the year 2014 due to drought, at the producer's discretion, and that product shall be multiplied further by the producer's total milk production in hundredweight of milk produced in 2016. There shall be subtracted from that amount any drought-related payments received by the producer from the federal government.

III. Proof of loss shall be in the form of a notice of loss or other typical documentation of loss from a competent authority, including but not limited to such agencies as the United States Department of Agriculture Farm Service Agency or crop insurance agent.

IV. If the amount appropriated for dairy producer drought relief by the general court is insufficient to pay each producer entirely and in whole in the manner as outlined in this section, any such final distribution shall be prorated and reduced proportionally for the benefit of all the producer applicants. The reduced amount shall then be distributed accordingly.

V. Any unexpended funds, after final distribution, shall be returned to the general fund.

VI. Should a producer cease to be a producer for any reason on or before December 31, 2020, the producer shall reimburse the state the entire amount paid to the producer under this program. The department of health and human services, dairy sanitation program (dairy sanitation) shall provide the department of justice a list of all permitted or licensed dairies. This list shall be provided on December 31 of each year from 2017 through 2020. Should the department of justice find that any producer is no longer permitted or licensed under this chapter by dairy sanitation then the department of justice shall collect reimbursement for the state of the amount paid to the producer.

VII. The administration and distribution of any funds appropriated for the purposes of this subdivision shall be administered by the department, which shall be exempt from the provisions of RSA 541-A.

27:3 Appropriation. There is hereby appropriated to the department of agriculture, markets, and food the sum of $2,000,000 for the fiscal year ending June 30, 2017 to pay milk producers permitted or licensed under RSA 184 for relief from the 2016 drought under RSA 184:112 through RSA 184:114.

27:4 Milk Producers Emergency Fund Board; Membership. Amend RSA 184:109, I(a) to read as follows:

(a) The commissioner, or designee.

27:5 Effective Date. This act shall take effect upon its passage.

Approved: April 25, 2017

Effective Date: April 25, 2017