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Dairy Product Price Support Program

DPPSP formerly known as the Milk Price Support Program MPSP
Number: 10.141
Agency: Department of Agriculture
Office: Farm Service Agency

Program Information 

Program Number/Title (010):
10.141 Dairy Product Price Support Program
Federal Agency (030):
Farm Service Agency, Department of Agriculture
Authorization (040):
The Food, Conservation, and Energy Act of 2008, Title 1, Part E, Section 1501, Public Law 110-246, 7 U.S.C 8771, as amended by American Taxpayer Relief Act of 2012, Public Law 112-240, 126 Stat. Stat 2313.
Objectives (050):
The purpose of DPPSP is to establish minimum purchase prices to support the price of nonfat dry milk (NDM), butter, and cheddar cheese through purchases of such products made from cows milk produced in the United States (U.S.). The Secretary of Agriculture (Secretary) may increase the purchase prices when it is considered to be appropriate. However to avoid excess inventory the minimum purchase prices can only be temporarily adjusted downward as outline in P.L. 110-246. P.L. 110-246 reauthorized MPSP as DPPSP beginning January 1, 2008 through December 31, 2012. PL 112-240 DPPSP reauthroized DPPSP through December 31, 2013.
Types of Assistance (060):
Direct Payments with Unrestricted Use
Uses and Use Restrictions (070):
DPPSP provides a safety net for dairy producers,. When butter, NDM or Cheddar Cheese is offered to the Commodity Credit Corporation (CCC), it will purchase the dairy products as long as the products meet CCC's specifications. CCC is authorized to donate food commodities acquired through price support programs to domestic and foreign feeding programs as required by law.
Eligibility Requirements (080)
Applicant Eligibility (081):
A potential applicant is an eligible offeror who is authorized to enter into a purchase agreement with CCC. A eligible offeror is a person,firm,cooperation, or other legal entity who is the manufacturer of the dairy product offered or a marketing cooperative for the manufacturer.

The eligible product must not have been sold before to another party and the eligible offeror must be the manufacturer of the dairy product offered or a marketing cooperative for the manufacturer. An eligible product:
1) must be manufactured from dairy cow's milk produced in the U.S.;
2) purchased only from an eligible offeror;
3) must be USDA inspected;
4) block cheddar cheese must be U.S. Grade A or higher
5) barrel cheese must be U.S. Extra Grade;
6) butter must be U.S. Grade A or higher;
7) NDM must be U.S. Extra Grade
8) CCC may require other terms and conditions of purchase as specified.
Beneficiary Eligibility (082):
Agricultural producers and the general public will receive the ultimate benefits from the program because it provides direct assistance and allows CCC to purchase and deliver commodities to the domestic and foreign feeding distribution programs.
Credentials/Documentation (083):
Vendors will notify the Agricultural Marketing Service (AMS) to check the grade and perform an analysis of the commodities. The eligible offeror submits an offer form (KC-327 Dairy 7A) to the Kansas City Administrative Office (KCAO), Domestic Procurement Division (DPD), Dairy and Multi-Food Branch (DMB) either by fax, mail, or e-mail. DPD shall verify the vendor code and the warehouse availability for eligible products. If the offer is approved, DPD/DMB will prepare and enter contract transactions into the Web-Based Supply Chain Management (WBSCM) system. An acceptance wire is created and will be approved by the CCC Accepting Official. After approval, the acceptance wire is faxed to the applicable vendor. This program is excluded from coverage under OMB Circular No. A-87.
Application and Award Process (090)
Preapplication Coordination (091):
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedures (092):
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Offers, modifications, withdrawals, and cancellations shall be submitted by:
a) email with an electronic signature,
b) Facsimile (FAX) to (816) 926-6381; or
c) Express or regular mail, and/or hand delivered.

Please indicate in the subject line for email or fax "Offer under Purchase Announcement Dairy (applicable number) and the name of the commodity (butter, cheese, or NDM). If you are submitting by mail, please place the notation in the lower-left corner of the envelope.

A prospective offeror shall register in the Central Contractor Registration (CCR) at
http://www.ccr.gov.
Award Procedure (093):
The date of the contract will be the date of an acceptance offer by CCC. The contract shall consist of the current version of the DPPSP, Purchase Announcement; an Offer; and CCC's acceptance of offer. The contract shall be forwarded to the Office of Budget and Finance (OBF), Financial Services Center, Funds and Commodity Management Office, Invoice Payment Group (Finance Office) in Kansas City. The Finance Office will review the Notice of Delivery (N/D) and other related product delivery information and forward the N/D to the vendor. The vendor will deliver the commodities in accordance to the N/D requirements and submit the invoice package to the Finance Office for payment. The completed invoice package shall include the grading certificate, bill of lading, and invoice or N/D. The Finance Office will enter the invoice into WBSCM. Vendor shall receive an electronic funds transfer (EFT) or paper check.
Deadlines (094):
Jan 01, 2008 to Dec 31, 2012 Not Applicable.
Range of Approval/Disapproval Time (095):
From 1 to 15 days. Not Applicable.
Appeals (096):
Not Applicable.
Renewals (097):
Not Applicable.
Assistance Consideration (100)
Formula and Matching Requirements (101):
Statutory Formula: Title 7 , Chapter Agriculture, Part 1430.100, Subpart A-Dairy Product Price Support Program, Public Law 110-246. Not Applicable.
Matching Requirements: CCC will offer to purchase products at the following prices for all regions of the United States:
(1) cheddar cheese in blocks at not less than $1.13 per pound; unless
(i) net removals of cheese for a period of 12 consecutive months exceed 200,000,000 pounds, but do not exceed 400,000,000 pounds, then the CCC cheddar cheese in blocks purchase price is not less than $1.03 per pound, during the immediately following month, or
(ii) net removals of cheese for a period of 12 consecutive months exceed 400,000,000 pounds, then the CCC cheddar cheese in blocks purchase price is not less than $0.93 per pound during the immediately following month;

(2) cheddar cheese in barrels at the cheddar cheese block price, less $0.03 per pound;

(3) butter at not less than $1.05 per pound; unless
(i) net removals of butter for a period of 12 consecutive months exceed 450,000,000 pounds, but do not exceed 650,000,000 pounds, then the CCC butter purchase price is not less than $0.95 per pound during the immediately following month, or
(ii) net removals of butter for a period of 12 consecutive months exceed 650,000,000 pounds, then the CCC butter purchase price is not less than $0.85 per pound during the immediately following month;

(4) nonfat dry milk at $0.80 per pound, unless
(i) net removals of nonfat dry milk for a period of 12 consecutive months exceed 600,000,000 pounds, but do not exceed 800,000,000 pounds, then the CCC nonfat dry milk purchase price is not less than $0.75 per pound during the immediately following month, or,
(ii) net removals of nonfat dry milk for a period of 12 consecutive months exceed 800,000,000 pounds, then the CCC nonfat dry milk purchase price is not less than $0.70 per pound during the immediately following month.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance (102):
Duration of agreement and order. Method of awarding/releasing assistance: quarterly.
Post Assistance Requirements (110)
Reports (111):
No reports are required.
Audits (112):
This program is excluded from coverage under OMB Circular No. A-133. CCC will randomly conduct domestic origin compliance reviews to determine if the product, containers, and packaging to CCC was produced and manufactured in the U.S. from materials produced and manufactured in the U.S. CCC may request the eligible to submit documentation to support compliance.
Records (113):
The eligible offer shall maintain records to verity that during the delivery period, at the point of packaging or, at the point of delivery to CCC, the product, containers, and packaging were in compliance with the requirements of the current DPPSP Purchase Announcement.
Financial Information (120)
Obligations (122):
(Sale, Exchange, or Donation of Property and Goods) FY 12 $0; FY 13 est $0; and FY 14 est $0 - No Dairy purchases were made in FY 2012 and Fy 2013.
Range and Average of Financial Assistance (123):
No data available.
Program Accomplishments (130):
Not Applicable.
Regulations, Guidelines, and Literature (140):
Food, Conservation, and Energy Act of 2008, P.L. 110-246
7 CFR 1430
7 USC 8771
DPPSP Purchase Announcement Dairy 7 2010 and Subsequent Years
FSA Notices and Fact Sheets
Information Contacts (150)
Regional or Local Office (151) :
See Regional Agency Offices.
Headquarters Office (152):
William A March 1400 Independence Ave SW, Washington, District of Columbia 20250 Email: William.March@wdc.usda.gov Phone: 202-720-4037
Website Address (153):
http://www.fsa.usda.gov
Examples of Funded Projects (170):
Not Applicable.
Criteria for Selecting Proposals (180):
Not Applicable.