Eligible dairy producers throughout the country can now sign-up for the Dairy Disaster Aid Program (DDAP – III) at their local USDA Farm Service Agency (FSA) service centers.
Approved back in May, the DDAP – III will offer $16 million in federal aid to dairy producers who suffered production losses due to natural disasters between January 1, 2005, and February 28, 2007. The program includes compensation for events such as lost herds or dumped milk when dairy plants were closed or containment equipment was damaged because of weather-related disaster. Also, power outages, fuel shortages, and infrastructure damage that temporarily interrupted the movement of dairy products to store shelves will be considered.
Dairy producers must have experienced losses in primary and contiguous counties declared or designated a natural disaster to qualify for the program. Eligibility may also extend to producers in counties receiving an FSA Administrator’s Physical Loss Notice determination. There are eligible counties in all 50 states. This file contains a list of those counties.
After entitled producers have signed up for DDAP – III, the USDA will determine payment by multiplying the eligible pounds by the average price received for commercial milk production in the affected disaster areas during the specified time period. If the total amount is not enough to fully compensate producers for their losses, the USDA will pay those losses at two levels to more evenly dispense limited funds and maximize the program’s effectiveness.