Revision: Jan. 25, 2017, 10:58 a.m.
SB 10-FN - AS INTRODUCED
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.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17-0247
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 licensed milk producers have suffered significant financial loss as a result of diminished crops due to the drought during 2016. Such losses have been compounded as a result of several years of unreasonably low federally-established milk prices. As a result of those factors, several 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. “Dairy production” means fluid milk produced by bovines sold wholesale or retail, through a cooperative, processor or directly to the public for any purpose.
II. “Producer” means a New Hampshire bovine dairy farm, as permitted, regulated, and inspected by the state, engaged in the business of producing milk for any purpose.
III. “New producer” means a New Hampshire bovine dairy farm that has initiated production after December 31, 2015.
IV. Feed” means and include but not be limited to such hay, grains, haulage, silage, or a composite in any combination.
V. “Homegrown feed” means pasture or any feed grown for the purpose of milk production by the producer on land owned or leased by the producer.
VI. "Total feed” shall mean homegrown feed and any feed purchased from another.
VII. “Percentage of loss” means the weighted average amount of “homegrown feed” of each type produced in 2016 divided by the amount of feed of each type produced in 2015 expressed as a percentage.
184:113 Implementation.
I. In order to qualify for the New Hampshire dairy producer drought relief program, a resident dairy producer shall apply to the department and shall provide proof of production and crop loss 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 apply no later than 30 days after the effective date of this subdivision.
IV. For the purposes of verification of application and claim, such records, inventory and statistics kept by producer or the producer’s agent, including but not limited to United States Department of Agriculture Farm Service Agency or the producer’s lender, cooperative, insurance agent or crop insurance representative, or processor shall be provided to the department along with the completed application. The department shall review such records in support of an application.
(a) In the case of production records provided solely by a producer selling directly to the public, the department may make an on site visit in order to verify production.
(b) In the case of records of loss or “notice of loss,” the producer shall provide the department with such documentation from the United States Department of Agriculture Farm Service Agency, crop insurance or similar competent authority or agency to support the claimed loss.
V. If a new producer making application has started production after December 31, 2015, an estimate of annual production shall be made by multiplying the number of cows by 55 pounds per cow per day by the days in production.
VI. The applicant producer shall sign a release allowing the department access to production and permit the department on-site access. The producer shall allow the department to make random inspections and audits of records, as necessary, in order to verify production. In no way shall such information provided, other than the actual cost arrived at, be made public.
184:114 Calculation of Payment.
I. The cost of feed shall be $7.54 per hundredweight.
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 loss and that sum shall be multiplied again by homegrown feed as a percentage of total feed and that sum shall be multiplied further by total production in hundredweights of milk produced in 2015.
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. After the amount of payment is calculated such amount shall be adjusted to reflect the following:
(a) Less any payments made to the producer by the United States Department Agriculture Farm Service Agency directly related to the production of fluid milk through the Dairy Margin Protection Program.
(b) Less any payments made to the producer by the United States Department of Agriculture Risk Management Agency directly related the production of fluid milk through the Livestock Gross Margin Dairy Program or crop insurance, specifically for feed related to dairy production only.
(c) Less any payment made through the Non insured Crop Disaster Assistance Program to the producer by the United States Department of Agriculture Farm Service Agency as a result of a loss in hay related to dairy production only.
(d) Less any payment made to the producer through the Livestock Forage Program related to dairy production only. Any premiums paid by the producer to Farm Service Agency or Risk Management Agency for the above margin protection programs, crop insurance, and forage program shall be credited to the producer against any deductions made against the payment.
V. Only that amount of funds derived from the Non insured Crop Disaster Assistance Program, the Livestock Forage Program, the Dairy Margin Protection Program, the Livestock Gross Margin Dairy Program or crop insurance shall be deducted against the payment.
VI. 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.
VII. Any unexpended funds, after final distribution, shall be returned to the general fund.
VIII. Should a producer cease to be a producer for any reason on or before December 31, 2022, the producer shall reimburse the state the entire amount paid to the producer under this program.
3 Effective Date. This act shall take effect upon its passage.
17-0247
1/9/17
SB 10-FN- FISCAL NOTE
as introduced
AN ACT relative to dairy farmer relief.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
Appropriation | $0 | $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 establishes the dairy producer drought relief program to provide financial assistance to New Hampshire dairy producers who experienced crop losses during the 2016 calendar year. The Department of Agriculture, Markets and Feed is responsible to administer the program created by this bill. Under the program, the Department shall provide a payout to qualifying dairies per the following formula: (((cost of feed at $100 per hundredweight) * (percentage loss)) * (homegrown feed as a percentage of total feed)) * (total production in hundredweights of milk produced in 2015). This bill does not include an appropriation or funding mechanism to execute the provisions of this bill. 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 estimates approximately 80 percent or 92 of the State's 115 dairies would qualify and apply for the program. Available information on the four counties impacted by severe drought and six counties impacted by moderate drought, indicates there has been a statewide average crop loss of approximately 17 percent. The Department does not have specific information detailing the losses sustained by each farm to estimate the costs associated with providing financial assistance to individual qualifying dairy farmers. However, based on available information, the Department estimates the total payment to all qualifying dairies will be approximately $3.6 million.
The Department assumes it will need to reassign an existing staff person to implement this program and that is it will take approximately the one staff member two days to develop application forms for the program 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).
AGENCIES CONTACTED:
Department of Agriculture, Markets & Food