Dairy Indemnity Payment Program
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
Program Objective
To protect dairy operations and manufacturers of dairy products who through no fault of their own, are directed to remove their milk or dairy products from commercial markets because of contamination from pesticides which have been approved for use by the Federal government. Dairy operations can also be indemnified because of contamination with chemicals or toxic substances, nuclear radiation or fallout. Affected dairy operations provide documentation of the dumped milk losses and are paid through DIPP for the full value of the dumped milk. Additionally, DIPP has the authority to indemnify cows that are permanently contaminated due to a chemical contamination. DIPP has successfully compensated dairy operations for many decades for dumped milk losses due to contamination issues.
Eligibility
Eligible Applicants
- Unrestricted by Individual Type
- Unrestricted by Entity Type
Dairy operation whose milk has been removed from the market by a public agency because of residue of any violating substance in such milk. Manufacturers of dairy products whose product has been removed from the market by a public agency because of pesticide residue in such product. This program is also available in Puerto Rico.
How to Apply
Award Procedure
Initial approval is made by the county FSA committee. Final approval is made by the Price Support Division in Washington, DC.
Decision Timeline
- Approval: From 60 to 90 days
Program details & compliance
Description
DIPP is a milk indemnity program for affected farmers that dumped milk because of contamination.
Mission Categories
Primary: Production and Operation
Use of Funds
Allowed Uses
Fair market value for the milk is paid to the dairy operation who is unable to market because of any of the violating substances, and the fair market value of the dairy product is paid to the manufacturer who is unable to market because of pesticide residue. No payment may be made to any dairy farmer or any manufacturer whose milk or dairy product was removed from the market as a result of his negligence or his willful failure to follow procedures prescribed by the Federal government. After 3 or more months of milk indemnification due to contamination, the dairy operation may be eligible for indemnification of dairy cows, open heifers, and bred heifers and required to permanently remove and euthanize the contaminated dairy animals.
Required Documentation
In the case of a dairy operation, the notice removing the milk from the market along with a record of past marketing records for milk to determine the quantity and value of the milk not marketed, the violating substance involved and the uses of such violating substances during the previous 24 months. In the case of the manufacturer of dairy products, the notice removing the product from the market and sufficient data to determine the value of the product.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements