AMS No. 048-11

Sam Jones-Ellard (202) 720-8998

Samuel.Jones@ams.usda.gov

WASHINGTON, March 17, 2011 - The U.S. Department of Agriculture today announced a final rule that will amend the National Dairy Promotion and Research Order and establishes a dairy import assessment program as required by the Farm Security and Rural Investment Act of 2002 (2002 Farm Bill) and the Food, Conservation, and Energy Act of 2008 (2008 Farm Bill).

Additionally, the term “United States” is amended in the Dairy Production Stabilization Act of 1983 (Act) to mean all states, the District of Columbia and the Commonwealth of Puerto Rico. All provisions are effective April 1, 2011, except those provisions regarding dairy importer assessments in Section 1150.152(b) of the Dairy Order. These provisions are effective August 1, 2011.

“This program will allow U.S. dairy producers and importers to jointly develop programs to build demand for dairy products and dairy ingredients,” said Agricultural Marketing Service (AMS) Administrator Rayne Pegg.

The 2002 Farm Bill mandates that the Dairy Order be amended to implement an assessment on imported dairy products to fund promotion and research. The 2008 Farm Bill specifies that importers of dairy products be assessed a rate of 7.5 cents per hundredweight, or the equivalent thereof.

The 2002 Farm Bill authorizes two importer representatives to the current 36 member National Dairy Promotion and Research Board. Thereafter, importer representation on the Dairy Board will be adjusted at least once every three years if necessary to reflect the volume of imports relative to domestic markets. The Dairy Board was established under the Act to develop and administer a coordinated program of promotion, research and nutrition education.

Producers in the United States, including the added areas of Alaska, Hawaii and the Commonwealth of Puerto Rico are assessed 15 cents per hundredweight of milk produced and marketed. The new areas are added to the regions of closest geographic proximity.

Copies of the final rule may be obtained from USDA, AMS, Dairy Programs, Room 2958-S, Washington, DC 202250-0233, USA from 9 a.m. to 4 p.m., Monday through Friday. The final rule is also available on www.regulations.gov and the AMS website at www.ams.usda.gov/dairyimportassessment.

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