Revision: April 14, 2017, 1:49 p.m.
SB 10-FN - VERSION ADOPTED BY BOTH BODIES
02/09/2017 0136s
23Mar2017... 0762h
23Mar2017... 1040h
04/06/2017 1394EBA
2017 SESSION
17-0247
08/10
SENATE BILL 10-FN
AN ACT relative to dairy farmer relief.
SPONSORS: Sen. Bradley, Dist 3; Sen. D'Allesandro, Dist 20; Sen. Fuller Clark, Dist 21; Sen. Morse, Dist 22; Rep. Hinch, Hills. 21; Rep. Umberger, Carr. 2
COMMITTEE: Energy and Natural Resources
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This bill creates a program to repay licensed milk producers from losses they may have incurred during the 2016 drought.
This bill also makes an appropriation to the department of agriculture, markets and food to fund the New Hampshire dairy producer drought relief program.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02/09/2017 0136s
23Mar2017... 0762h
23Mar2017... 1040h 17-0247
04/06/2017 1394EBA
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT relative to dairy farmer relief.
Be it Enacted by the Senate and House of Representatives in General Court convened:
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.
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.
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.
4 Milk Producers Emergency Fund Board; Membership. Amend RSA 184:109, I(a) to read as follows:
(a) The commissioner, or designee.
5 Effective Date. This act shall take effect upon its passage.
17-0247
Amended 2/17/17
SB 10-FN- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2017-0136s)
AN ACT relative to dairy farmer relief.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2017 | FY 2018 | FY 2019 | FY 2020 |
Appropriation | $2,000,000 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable Increase | $0 | $0 | $0 |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ ] Other | |||
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METHODOLOGY:
This bill appropriates $2 million of general funds to the Milk Producers Emergency Relief Fund effective upon passage of this bill to provide monetary relief to licensed New Hampshire bovine milk producers for losses experienced during the 2016 drought. The entire $2 million must be expended no later than April 15, 2018. The Milk Producers Emergency Relief Fund Board shall be responsible to provide a proportional share of the funds to each bovine milk producer based on home grown feed production loss and increased costs of purchased feed, less any federal drought relief payments. If any applicant that is provided a payment under this program ceases to be a milk producer on or before December 31, 2022, they shall reimburse the State the entire amount paid to them.
The Department of Agriculture, Markets and Feed assumes it will administer the disbursements of funds provided for in this bill. The Department estimates approximately 80 percent or 92 of the State's 115 dairies would qualify and apply for the funds. The Department assumes it will need to reassign an existing staff person to implement the provisions of this bill and that it will take approximately one staff member two days to develop application forms and 3.75 hours to process each of the 92 applications it anticipates receiving (a full work day is considered 7.5 hours). Additionally, the Department anticipates at least 120 inquires from dairies lasting in duration of 15 minutes each. Consequently, the Department estimates this bill will require 52 days of staff time (((2 days to develop applications * 7.5 hours) + (92 applications * 3.75 hours) + (120 phone inquires * .25 hours)) / 7.5 hours = 52 days).
If a bovine milk producer receives payment under this bill and subsequently ceases operations prior to December 31, 2020, then the Department of Justice may incur increased costs resulting from the recoupment of any amounts paid.
AGENCIES CONTACTED:
Department of Agriculture, Markets and Food and Department of Justice