Module 2 - Applying for DDAP-III Benefits Dairy Disaster Assistance Payment Program DDAP-III

Module 2 - Applying for DDAP-III Benefits FSA-747  Application for DDAP-III benefits  Separate FSA-747 for each operation  All persons who share in the risk of operations total production must certify.  One FSA-747 for multiple disasters

Module 2 - Applying for DDAP-III Benefits Example #1  ABC Dairy Operation consists of Bob Jones and Frank Smith who jointly share in the operation 50%.  ABC Dairy Operation completes FSA-747 that includes both Bob Jones and Frank Smith at their 50/50 interest.

Module 2 - Applying for DDAP-III Benefits Example #2  XYZ Dairy Operation is 100% owned by Frank Smith who is also a member of ABC Dairy Operation from Example #1.  XYZ Dairy Operation completes an FSA-747 for Frank Smith’s 100% interest

Module 2 - Applying for DDAP-III Benefits Separate Dairy Operations A dairy operation is considered separate when both of the following apply: A dairy operation is considered separate when both of the following apply:  Milk production is not commingled  All milk marketing payments and records are separate.

Module 2 - Applying for DDAP-III Benefits Signature Requirements All participants’ signatures must be received by the ending signup date to be announced at a later date. Neither STC nor COC has authority to approve late-filed FSA-747. All participants’ signatures must be received by the ending signup date to be announced at a later date. Neither STC nor COC has authority to approve late-filed FSA-747.

Module 2 - Applying for DDAP-III Benefits Deceased Individuals and Dissolved Entities  Must have authority to sign  Use FSA-325 according to 1-CM

Module 2 - Applying for DDAP-III Benefits Multiple Benefit Deduction  Payments made for 2005 DDAP-II must be reduced by the amount received under DDAP-III.  Producers must certify on FSA-747 whether a 2005 DDAP-II payment was received.

Module 2 - Applying for DDAP-III Benefits FSA-747

Part A

Module 2 - Applying for DDAP-III Benefits Part B

Module 2 - Applying for DDAP-III Benefits Part C

Module 2 - Applying for DDAP-III Benefits Part D Losses determined by COC not be disaster related losses must be: Entered in Part D Adjusted from calculated production losses as provided in module 3 Documented in COC minutes

Module 2 - Applying for DDAP-III Benefits Example  Bob Jones suffered losses in 2005 as a result of Hurricane Katrina and lost 5 cows in September as a result.  In December he sells 10 cows to another farmer, and the sale is unrelated to the hurricane in September.  An entry for 10 cows is made in row and column for December 2005.

Module 2 - Applying for DDAP-III Benefits Part E

Module 2 - Applying for DDAP-III Benefits Part F

Module 2 - Applying for DDAP-III Benefits Supporting Documentation Adequate proof of the following must be provided at time of application: Adequate proof of the following must be provided at time of application:  Dairy herd inventories  Commercially marketed production  Dumped production not marketed  Dairy cows added to offset losses.

Module 2 - Applying for DDAP-III Benefits Acceptable Documentation  Inventory records  Sales receipts/invoices  State health certificates  Milk marekting statements  Tank records  Milk handler records  Daily milk marketings  Copies of payments received for loss

Module 2 - Applying for DDAP-III Benefits Acting on Application  If any data on FSA-747 or supporting documents is questionable, COC shall request additional documentation/evidence from applicant or other sources.

Module 2 - Applying for DDAP-III Benefits Reviewing Documentation  Make a copy, date stamp copy, return originals  Verify marketings are for applicable base and claim period  Determine if herd inventory is substantiated  Verify cow additions to herd  Confirm production losses are reasonable and disaster related  Determine losses or cow purchases unrelated to declared disaster

Module 2 - Applying for DDAP-III Benefits Discrepancies COC DETERMINATION ACTION Good Faith No further action necessary Misrepresentation, scheme, or device Dairy operation ineligible and must refund payment