7 CFR § 786.107 - Rate of payment and limitations on funding.

(a) Subject to the availability of funds, the payment rate for eligible production losses determined according to § 786.106 is, depending on the State, the annual average Mailbox milk price for the Marketing Order, applicable to the State where the eligible disaster county is located, as reported by the Agricultural Marketing Service during the relevant period. States not regulated under a Marketing Order will be assigned a payment rate based on contiguous or nearby State's Mailbox milk price. Maximum per pound payment rates for eligible losses for dairy operations located in specific states during the relevant period are as follows:

State	Mailbox price 2005	Mailbox price 2006	Mailbox price 2007 *
Alabama	0.1596	0.1443
Alaska	0.2040	0.2010
Arizona	0.1388	0.1128
Arkansas	0.1596	0.1443
California	0.1388	0.1128
Colorado	0.1403	0.1214
Connecticut	0.1539	0.1344
Delaware	0.1539	0.1344
Florida	0.1758	0.1603
Georgia	0.1596	0.1443
Hawaii	0.2700	0.2600
Idaho	0.1402	0.1215
Illinois	0.1514	0.1283
Indiana	0.1503	0.1294
Iowa	0.1507	0.1285
Kansas	0.1403	0.1214
Kentucky	0.1527	0.1349
Louisiana	0.1596	0.1443
Maine	0.1539	0.1344
Maryland	0.1539	0.1344
Massachusetts	0.1539	0.1344
Michigan	0.1478	0.1264
Minnesota	0.1512	0.1277
Mississippi	0.1596	0.1443
Missouri (Northern)	0.1403	0.1214
Missouri (Southern)	0.1467	0.1254
Montana	0.1512	0.1277
Nebraska	0.1403	0.1214
Nevada	0.1388	0.1128
New Hampshire	0.1539	0.1344
New Jersey	0.1539	0.1344
New Mexico	0.1323	0.1108
New York	0.1539	0.1303
North Carolina	0.1527	0.1349
North Dakota	0.1512	0.1277
Ohio	0.1506	0.1302
Oklahoma	0.1596	0.1443
Oregon	0.1402	0.1215
Pennsylvania (Eastern)	0.1539	0.1340
Pennsylvania (Western)	0.1539	0.1302
Puerto Rico	0.2550	0.2570
Rhode Island	0.1539	0.1344
South Carolina	0.1527	0.1349
South Dakota	0.1512	0.1277
Tennessee	0.1527	0.1349
Texas	0.1405	0.1194
Vermont	0.1539	0.1344
Virginia	0.1527	0.1349
Washington	0.1402	0.1215
West Virginia	0.1506	0.1302
Wisconsin	0.1535	0.1305
Wyoming	0.1403	0.1214

Note: Calculations are rounded to 7 decimal places.

* Payment rates for 2007 are currently unavailable, but will be based on the annual average Mailbox milk price for the Marketing Order, applicable to the State where the eligible disaster county is located, as reported by the Agricultural Marketing Service, consistent with payment rates provided for 2005 and 2006.

(b) Subject to the availability of funds, each eligible dairy operation's payment is calculated by multiplying the applicable payment rate under paragraph (a) of this section by the operation's total eligible losses as adjusted pursuant to this part. Where there are multiple producers in the dairy operation, individual producers' payments are disbursed according to each producer's share of the dairy operation's production as specified in the application.

(c) If the total value of losses claimed nationwide under paragraph (b) of this section exceeds the $16 million available for the DDAP–III, less any reserve that may be created under paragraph (e) of this section, total eligible losses of individual dairy operations that, as calculated as an overall percentage for each full disaster claim period applicable to the disaster declaration, are greater than 20 percent of the total base annual production will be paid at the maximum rate under paragraph (a) of this section to the extent available funding allows. A loss of over 20 percent in only one or two months during the applicable disaster claim period does not of itself qualify for the maximum per-pound payment. Rather, the priority level must be reached as an average over the whole disaster claim period for the relevant calendar year. Total eligible losses for a producer, as calculated under § 786.106, of less than or equal to 20 percent during the eligible claim period will then be paid at a rate, not to exceed the rate allowed in paragraph (a) of this section, determined by dividing the eligible losses of less than 20 percent by the funds remaining after making payments for all eligible losses above the 20-percent threshold.

(d) In no event will the payment exceed the value determined by multiplying the producer's total eligible loss times the average price received for commercial milk production in the producer's area as defined in paragraph (a) of this section.

(e) No participant will receive disaster benefits under this part that in combination with the value of production not lost would result in an amount that exceeds 95 percent of the value of the expected production for the relevant period as estimated by the Secretary. Unless otherwise program funds would not be fully expended, the sum of the value of the production not lost, if any; and the disaster payment received under this part, cannot exceed 95 percent of what the production's value would have been if there had been no loss. In no case, however, may the value of production and the payment exceed the value the milk would have without the loss.

(f) A reserve may be created to handle pending or disputed claims, but claims will not be payable once the available funding is expended.