U.S. Code of Federal Regulations
Regulations most recently checked for updates: Feb 08, 2023
(a) The regulations in this subpart apply for the Dairy Product Donation Program (DPDP). DPDP is authorized by section 1431 of the Agricultural Act of 2014 (Pub. L. 113-79, 7 U.S.C. 9071).
(b) DPDP is designed to address low dairy producer margins, through periodic purchases of dairy products, as specified in this subpart. Dairy products purchased for DPDP will be used to provide nutritional assistance to members of low-income groups.
(c) The purchase aspect of DPDP will be operated for the Secretary of Agriculture and for the Commodity Credit Corporation by the Farm Service Agency (FSA) under the direction of the FSA's Deputy Administrator for Commodity Operations. Purchases are subject to the terms and conditions in FSA's purchase announcements. The distribution of products purchased through DPDP will be operated for the Secretary under the direction of the Food and Nutrition Service.
For purposes of this subpart, the following terms and acronyms apply:
2014 Farm Bill means the Agricultural Act of 2014 (Pub. L. No. 113-79).
Actual dairy production margin is as defined in subpart A of this part.
AMS means the Agricultural Marketing Service of the USDA.
CCC means the Commodity Credit Corporation.
Deputy Administrator means the Farm Service Agency Deputy Administrator for Commodity Operations.
Distribution means the provision of products purchased through DPDP to low-income groups through FNS food distribution programs in accordance with those program regulations and 7 CFR part 250.
DPDP means the Dairy Product Donation Program.
FNS means the Food and Nutrition Service of the USDA.
FSA means the Farm Service Agency of the USDA.
FSA Administrator means Administrator of the Farm Service Agency, USDA.
Hundredweight or cwt means 100 pounds.
MPP-Dairy means the Margin Protection Program for Dairy provided for in subpart A of this part.
NDM means non-fat dry milk.
Recipient agencies means agencies or organizations that are eligible to receive donated product for distribution under this subpart.
USDA means the United States Department of Agriculture.
(a) DPDP purchases commence only if approved by the FSA Administrator under the provisions of this subpart. The FSA Administrator will approve DPDP purchases only if the actual dairy production margin has been $4 or less per cwt for each of the preceding 2 months. The actual dairy production margin will be calculated as specified in § 1430.110. The following chart shows an example of the timing for the determination of DPDP purchases.
DPDP Purchase Determination Example Based on Dairy Production Margins and 3-Month Maximum for Purchases 1
|2 Consecutive months||Calculate margin for 2 consecutive months 2||If both margins below $4 per cwt in the 2 consecutive months||3-Month maximum consideration||If either margin above $4 per cwt in the 2 consecutive months|
|January and February||March||Dairy product purchases 3 begin in April||1st month of purchases||No purchases.|
|February and March||April||Dairy product purchases 3 begin in May||2nd consecutive month of purchases||No purchases.|
|March and April||May||Dairy product purchases 3 begin in June||3rd consecutive month of purchases||No purchases.|
|April and May||June 4||No purchases; terminated after 3 consecutive months||3-month maximum reached (1st month off)||No purchases.|
|May and June||July||No purchases; terminated after 3 consecutive months||3-month maximum reached (2nd month off)||No purchases.|
|June and July||August||No purchases; terminated after 3 consecutive months||3-month maximum reached (3rd month off)||No purchases.|
|July and August||September||Dairy product purchases 3 begin in October||1st month of purchases||No purchases.|
|August and September||October||Dairy product purchases 3 begin in November||2nd consecutive month of purchases||No purchases.|
|September and October||November||Dairy product purchases 3 begin in December||3rd consecutive month of purchases||No purchases.|
|October and November||December||No purchases; terminated after 3 consecutive months||3-month maximum reached (1st month off)||No purchases.|
|November and December||January||No purchases; terminated after 3 consecutive months||3-month maximum reached (1st month off)||No purchases|
1 This example assumes that purchases begin in January. In reality, DPDP can - depending on prices and margin triggers - begin on September 1, 2014, which is the start of MPP-Dairy.
2 The full month data for a given month is available at the end of the following month. For example, January data are not available until the end of February.
2 Purchases cannot begin unless domestic cheddar cheese or nonfat dry milk prices are at certain differentials relative to world prices.
3 In the example, June is the 3rd month of consevutive purchases. June would not be calculated as a potential trigger month, but it is shown on the chart to clearly show the concept of 3 months on and 3 months off for purchases. If purchases are taking place during a month, that month cannot be used as a trigger month for a future purchase period.
(b) DPDP purchases terminate and are not reinstated until the condition specified in paragraph (a) of this section is again met, whenever any one of the following occurs:
(1) If purchases were made for the preceding 3 months, even if the actual dairy production margin remains $4 or less per cwt of milk.
(2) If the actual dairy production margin has been greater than $4 per cwt of milk for the immediately preceding month.
(3) If the actual dairy production margin has been $4 or less, but more than $3, per cwt for the immediately preceding month and during the same month -
(i) The price in the United States for cheddar cheese was more than 5 percent above the world price, or
(ii) The price in the United States for non-fat dry milk (NDM) was more than 5 percent above the world price of skim milk powder.
(4) If the actual dairy production margin has been $3 or less per cwt of milk for the immediately preceding month and during the same month -
(i) The price in the United States for cheddar cheese was more than 7 percent above the world price; or
(ii) The price in the United States for NDM was more than 7 percent above the world price of skim milk powder.
(c) Purchases will terminate beginning with the first day of any month that does not qualify for DPDP purchases.
(d) For calculations under paragraphs (b)(3) and (4) of this section, the FSA Administrator may use data from a single or multiple locales or markets, including weighted averages, in consultation with AMS or other USDA agencies.
(a) DPDP purchases will be made only for those months that the FSA Administrator has determined meet all the requirements specified in § 1430.302. The purchases are subject to DPDP requirements including price and quantity restrictions specified in this subpart.
(b) The Secretary has the authority to determine purchase and distribution methods for dairy product purchases and distribution. Unless otherwise determined by the Secretary, this authority is delegated to the Deputy Administrator in consultation with FNS.
(c) FSA and FNS will determine the types and quantities of products that will be purchased, in consultation with public or private nonprofit organizations and State and local agencies eligible to receive such products.
(d) The FSA Administrator will determine the quantity of purchases to be made for a qualifying month and will consider the results of any consultations in determining the quantity to be purchased. In making the determination, the FSA Administrator will also take into account a number of factors, including, but not limited to, dairy product market conditions, logistical considerations involved in the efficient and immediate distribution of the dairy products, the potential effect on markets and margins, time constraints of DPDP, and the cost effectiveness of the purchases. Approved quantities for a month will not exceed the amount of product that may be effectively distributed without waste.
(e) Purchases may be approved for a qualifying month to the extent that the purchase by FSA can reasonably be expected to be completed in that calendar month and the products delivered to recipient agencies within 90 days.
(f) DPDP purchases cannot be stored by or for CCC, and CCC cannot incur storage costs on behalf of recipient agencies for the dairy products.
(g) The purchase price of products will be the prevailing market price for like dairy products for private buyers as determined by the Deputy Administrator. That price may be, if approved by the Deputy Administrator, the price determined by the normal procurement methods used to procure foods for FNS domestic food assistance programs, if the dairy products are obtained that way.
(a) Purchased products will be distributed to private and public nonprofit organizations eligible to receive donated foods for distribution to low-income groups through FNS' food distribution programs as specified in FNS program regulations and the requirements in 7 CFR part 250.
(b) Public and private nonprofit organizations receiving donated dairy products under this section will be responsible for the proper handling and distribution of such products in accordance with FNS program regulations, 7 CFR part 250, and FNS guidance and instructions.
(c) A private or nonprofit organization agency receiving donated products under this section which improperly distributes or uses such product or causes loss of or damage to such product, will be subject to recovery of losses or other corrective action in accordance with FNS program regulations, 7 CFR part 250.