UNITED STATES DEPARTMENT OF AGRICULTURE Farm Service Agency Washington, DC 20250 For: Puerto Rico State and County Offices

Dairy Assistance Program for Puerto Rico (DAP-PR) in Response to 2017 Hurricanes Approved by: Acting Deputy Administrator, Farm Programs

1 Overview

A Background As a result of the 2017 hurricanes, dairy operations in Puerto Rico face additional losses to their dairy operation due to the amount of and availability of feed for their animals and lack of electricity to run their dairy operations. In response to the devastation to dairy operations by 2017 hurricanes in Puerto Rico, CCC is using its authority under Section 5(b) of the CCC Charter Act (15 U.S.C. 714c(b)) to provide an estimated $12 million to provide assistance to dairy operations in Puerto Rico. These funds can be used to purchase feed in connection with production and marketing of dairy. DAP-PR will provide feed vouchers to eligible dairy operations for acquiring feed from eligible feed vendors, as provided in this notice, in Puerto Rico. FSA will administer DAP-PR on behalf of CCC. DAP-PR will provide an estimated 30-day supply of feed for 100 percent of the feed cost, as calculated by FSA. FSA, through the feed vouchers, will enter into agreements with eligible feed vendors to accept feed vouchers from eligible dairy operations. In turn, FSA will reimburse eligible feed vendors for the feed acquired by eligible dairy operations. FSA personnel will be positioned at the eligible feed vendors in Puerto Rico to accept applications from dairy operations to process feed vouchers used at eligible feed vendors.

B Purpose This notice provides: that DAP-PR signup is October 21, 2017, through December 1, 2017 the DAP-PR provisions and eligibility policy and procedure for implementing DAP-PR responsibilities of FSA personnel for implementing DAP-PR application, voucher, and payment process.

Disposal Date May 1, 2018

Distribution Puerto Rico State Office; State Office relay to County Offices

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Notice DF-333

2 Program Provisions

A Application Signup Period

Eligible dairy operations that suffered livestock feed losses due to 2017 hurricanes in Puerto Rico may signup for DAP-PR beginning October 21, 2017. DAP-PR signup deadline is December 1, 2017.

Dairy operations must apply for DAP-PR by completing CCC-315, Parts A-C at an eligible feed vendor, as provided in paragraph 4. An FSA representative will be on location at the eligible feed vendors to assist dairy operations in completing the automated CCC-315 and to review and act on applications.

B Outreach

Dairy operations with an active license with the Puerto Rico Department of Agriculture (PRDA) and livestock inventories reported as of August 2, 2017, will be notified by FSA of DAP-PR and their eligibility by letter. This letter will include their maximum eligible voucher amount available based on the inventories reported to PRDA. See Exhibit 2 for a copy of the letter. Other outreach efforts will include press releases, public service announcements, GovDelivery, and informational meetings.

C PRDA Report Each dairy operation in Puerto Rico is licensed by PRDA; as a result, FSA has received a

report from PRDA providing the following data for each licensed dairy operation:

license number name and address contact information number of head of livestock, by category, in inventory as of August 2, 2017.

Notes: If a dairy operation is not listed as an active dairy on the PRDA report, the dairy

operation must work with PRDA to meet those requirements and provide FSA an update to the report.

See subparagraph 3 C for a list of eligible livestock by category.

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2 Program Provisions (Continued) D Payment Limits, AGI, and Other Compliance Provisions

Eligible dairy operations are not subject to the following provisions:

actively engaged in farming payment limitation AGI foreign person rules AD-1026.

E Maximum Eligible Voucher Amount

DAP-PR will provide eligible dairy operations a voucher for a value, as determined by FSA, representing an estimated 30-day feed supply at 100 percent of the feed cost for livestock, by category, in inventory as determined as follows:

eligible dairy operations’ current livestock inventory, as provided by PRDA, minus

livestock sold and/or livestock deaths occurring on or before the date of the DAP-PR application, times

the value of the feed needs per head of livestock, by category, for 30 days, as provided in

subparagraph F.

Important: Eligible dairy operations’ current livestock inventories can only be reduced for livestock sales and/or livestock deaths, but not increased for livestock purchases under any circumstances.

F Payment Rates

The payment rates, as determined by FSA, for the value of feed per head of livestock for 30 days are as follows:

$101 for adult cows, adult bulls, and heifers over 2 years old $34 for heifers under 2 years old and young bulls/calves.

G Benefit Exclusion for Animals Dying or Sold Before DAP-PR Application

Eligible dairy operations that have livestock deaths or sales that occur on or before date of the DAP-PR application must be subtracted from inventory eligible for DAP-PR.

Important: Livestock that are included in inventory on the PRDA report (see

subparagraph C) that die or are sold through the date the dairy operation signs the DAP-PR application must be subtracted from the dairy operation’s inventory. See subparagraph 4 B for instructions for recording livestock that were sold and/or died on the DAP-PR application.

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2 Program Provisions (Continued) H Voucher Provisions

Only one voucher will be provided for each eligible dairy operation. The value of the voucher is based on the maximum eligible voucher amount, as determined in subparagraph E. An eligible dairy operation may acquire feed, via voucher, from one or more of the three eligible feed vendors, not to exceed the maximum eligible voucher amount. Eligible dairy operations may elect to use the whole value of the voucher at one time, or may elect to use a portion of the voucher, up to 4 times, not to exceed the maximum eligible voucher amount. A voucher (CCC-315, Part E) must be completed and signed by all applicable parties, according to subparagraph 5 E, including the:

eligible dairy operation approved feed vendor FSA representative. Original vouchers must be in FSA custody at all times. If either a dairy operation or vendor wants a copy of the voucher, the FSA representative must write on the voucher in big print “COPY: MAY NOT BE USED TO PURCHASE FEED”. Important: The value of the voucher expires 45 calendar days from the date the

application is approved by FSA. Vouchers cannot be used 45 calendar days from the date the application is approved by FSA even when there are funds remaining on the voucher.

I Eligible Feed Vendors Agreement

By signing the voucher, eligible feed vendors agree to provide feed to the eligible dairy operations based on an amount not to exceed the maximum eligible voucher amount. FSA will make DAP-PR payments directly to eligible feed vendors for feed disbursed to eligible dairy operations, according to subparagraph 5 G. Eligible feed vendors will provide FSA and the eligible dairy operations with feed receipts indicating the feedstuff and value of feedstuff provided to eligible dairy operations each time the voucher is acted on by all applicable parties.

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Notice DF-333 3 Eligibility

A Eligible Dairy Operations

To be considered an eligible dairy operation for DAP-PR, individuals or legal entities must:

be listed as an active licensed dairy operation on the PRDA report

have an interest in the licensed dairy operation

have live dairy animals at the time of DAP-PR application

certify that the livestock inventories reported at the time of application are true and accurate

timely file CCC-315 by the signup deadline provided in subparagraph 2 A

have provided FSA a current mailing address and tax identification number.

Note: If the dairy operation’s data needs to be updated, an AD-2047 must be completed according to 1-CM and updated in Business Partner according to 11-CM.

B Eligible Feed Vendors

The following feed vendors in Puerto Rico are considered eligible feed vendors for DAP-PR:

ADM Alliance Nutrition of Puerto Rico LLC, Hatillo, PR Pan American Grain, Guaynabo, PR Federacion de Asociaciones Pecuarias de PR, Inc., Mayaguez, PR.

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Notice DF-333 3 Eligibility (Continued) C Eligible Livestock

To be considered eligible livestock for DAP-PR, livestock must meet all of the following

conditions:

be livestock that the eligible dairy operation has ownership

be livestock that are listed as all or part of the inventory reported on the PRDA report

be adult and non-adult dairy cattle as part of an eligible dairy operation on the date of application

be 1 of the following, as provided by PRDA:

Adult Cows - Milk Adult Cows – Dry Adult Bulls Heifers > 2 Years of Age Heifers < 2 Years of Age Young Bulls/Calves.

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4 Application Process (CCC-315, Parts A-D) A Completing CCC-315, Parts A and B

Eligible dairy operations will complete CCC-315 at an eligible feed vendor location. An automated CCC-315 and instructions for completing the automated CCC-315 will be provided on the following SharePoint site:

https://sharepoint.fsa.usda.net/mgr/dafp/PECD/PR_DAP/SitePages/Home.aspx. FSA representatives will be on site at eligible feed vendors to assist eligible dairy operations

in completing CCC-315, Parts A and B to determine a one-time maximum eligible voucher amount, to be used to acquire feed from a vendor.

Important: In the event, for whatever reason, the automated CCC-315 is not

available CCC-315, Parts A and B must be completed manually. See Exhibit 1 for an example and instructions for completing the manual

CCC-315.

The following data from the PRDA report described in subparagraph 2 C will be prefilled on the automated CCC-315, Parts A and B for each eligible dairy operation: license number (item 4) name and address (item 5A) contact information (items 5B-D) inventory by livestock category (item 6B).

A copy of the PRDA report should be accessible if the automated system is not available. The eligible dairy operation must complete item 6C, Adjustments (sales, deaths). Item 6C is not a prefilled item.

B Printing CCC-315, Parts A-C

After completing CCC-315, Parts A and B, the FSA representative must print the application (Parts A-D), according to instructions on the SharePoint site referenced in subparagraph A.

C Completing CCC-315, Part C

A representative of the eligible dairy operation must certify, sign and date the printed CCC-315 (items 7A-C) before the FSA representative acts on the application section, according to subparagraph D.

Important: The value of the voucher actually used will be reported on IRS Form 1099

with the identification number provided on the PRDA report. 10-20-17 Page 7

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4 Application Process (CCC-315, Parts A-D) (Continued)

D Completing/Approving CCC-315, Part D

After CCC-315, Parts A-C, are completed, the FSA representative must:

review Parts A-C

certify, sign and date CCC-315, Part D

provide a copy of the DAP-PR application (CCC-315, Parts A-D), to the eligible dairy operation.

5 Voucher Process (CCC-315, Part E)

A Overview

Each time an eligible dairy operation purchases feed using a voucher (up to a maximum of 4 times), Part E, items 11-18, must be completed.

The eligible dairy operation’s maximum eligible voucher amount from CCC-315, item 6G,

will be the beginning balance of the voucher. Each time an eligible dairy operation purchases feed using a voucher, the remaining balance will be reduced by value of feed purchased as provided on eligible feed receipts, as described in subparagraph B.

B Eligible Feed Receipts When an eligible dairy operation purchases feed using a voucher, eligible feed vendors must

provide copies of the feed receipts indicating feedstuff purchased and the value of the feedstuff purchased. Only the cost of feed (including any handling and delivery charges) is considered eligible feed cost. All other items on the feed receipt must be excluded from use on the voucher. Any and all receipts must be attached to the vouchers.

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5 Voucher Process (CCC-315, Part E) (Continued)

C Completing CCC-315, Part E Eligible dairy operations will complete CCC-315, Part E, at an eligible feed vendor location.

FSA representatives will be on site at eligible feed vendors to assist eligible dairy operations in completing CCC-315, Part E. FSA representatives located at eligible feed vendors must:

retrieve the eligible dairy operations automated CCC-315 from the SharePoint site

referenced in subparagraph 4 B. Note: Instructions for retrieving the automated CCC-315 will be provided on the

SharePoint site.

complete CCC-315, items 11 and 12 and items 15-17, according to instructions provided on the SharePoint site.

Important: In the event, for whatever reason, the automated CCC-315 is not

available items 11, 12, and 15 through 17 must be completed manually. See Exhibit 1 for an example and instructions for completing the manual CCC-315.

D Printing CCC-315, Part E

After completing CCC-315, items 11, 12, and 15-17, FSA representatives must print the voucher (CCC-315, Part E), according to instructions on the SharePoint site.

Important: Attach receipts from the feed vendor to CCC-315.

E Obtaining Signatures After printing the voucher (CCC-315, Part E), the following signatures must be obtained:

eligible feed vendor signature (item 13) eligible dairy operation signature (item 14) FSA representative (item 18).

F CCC Approved Feed Purchase

Once an FSA representative signs the voucher, the FSA representative must flag the feed purchase as “CCC Approved” in the automated CCC-315, according to instructions on the SharePoint site.

G Approved Feed Vendor Payments

When feed purchases by an eligible dairy operation are flagged as “CCC Approved”, in the automated CCC-315, that will be the indication that a payment is ready to be issued to an eligible feed vendor. DAP-PR assignments and payments will be processed by the National Office. Important: The PR State and County Offices are not to process any DAP-PR payments.

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6 Action

A Puerto Rico State Office Action The Puerto Rico State Office will ensure that County Offices receive and review the entire

contents of this notice. B Puerto Rico County Office Action County Offices must follow procedure in this notice in implementing DAP-PR. Questions

related to DAP-PR and the contents of this notice must be directed to their respective State program specialist.

C Contact Information

State program specialists will direct questions according to this table.

Issue Contact Policy Contact Kelly Breinig by either of the following:

email to kelly.breinig@wdc.usda.gov telephone at 202-720-1603.

DAP-PR SharePoint Contact either of the following: Tracey Smith by either of the following:

email to tracey.smith@wdc.usda.gov telephone at 202-720-4365

Alison Groenwoldt by either of the following: email to alison.groenwoldt@wdc.usda.gov telephone at 202-720-4213.

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Notice DF-333 Exhibit 1 Completing CCC-315, Dairy Assistance Program for Puerto Rico (DAP-PR) in Response to 2017 Hurricanes Application and Voucher

A Instructions for Completing CCC-315

CCC-315 must be completed according to this table.

Item Instructions 1 This item is pre-filled. 2 This item is pre-filled. 3 Enter the county in which the dairy operation is located. 4 Enter the license number for the dairy operation.

APPLICATION Part A – Dairy Operation Information

5A Enter the name and address, including ZIP code, of the dairy operation. 5B Enter the name of the contact for the dairy operation. 5C Enter an e-mail address to contact the dairy operation. 5D Enter a telephone number, including area code, to contact the dairy operation.

Part B – Dairy Herd Information 6A This item is pre-filled. 6B Enter the inventory as of 8/2/2017 reported to CCC by the Puerto Rico Department of Agriculture for each

category of livestock. 6C Enter the number of livestock that died or were sold on or before the date the dairy operation signs the

application in item 7. 6D Enter the current inventory (item 6B minus item 6C). 6E This item is pre-filled. 6F Enter the value of the voucher (item 6D times 6E). 6G Enter the total value of the voucher (sum of 6F for all types of livestock in 6A).

Part C – Dairy Operation Certification 7A Authorized signature for the dairy operation. 7B Enter the title/relationship of the individual signing in a representative capacity in item 7A. 7C Enter the date of the signature.

Part D – CCC Approval of Application and Total Voucher Amount 8A Enter the name of CCC representative. 8B CCC representative signature. 8C Enter the title of CCC representative. 8D Enter the date CCC representative approved the application, Parts A-C.

VOUCHER Part E - Purchases

9A Enter the name of the dairy operation from item 5A. 9B Enter the license number for the dairy operation from item 4. 10 Enter the opening beginning balance value of the voucher from item 6G. 11 Enter the date the voucher is used to purchase feed from the vendor. 12 Enter the name of the approved feed vendor. 13 Authorized signature for the vendor. Enter the title of the individual signing for the vendor below the

signature. 14 Authorized signature for the dairy operation. Enter the title/relationship of the individual signing for the dairy

operation below the signature. 15 Enter the receipt number of the feed transaction. 16 Enter the amount of the total value of voucher used. This cannot exceed the lesser of item 10 or item 17 from

the preceding line. 17 Enter the remaining balance of the voucher (item 10 for the first feed transaction or item 17 from the

preceding line (feed transaction) minus item 16). 18 CCC representative signature. Enter the title of CCC representative below the signature.

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Notice DF-333 Exhibit 1 Completing CCC-315, Dairy Assistance Program for Puerto Rico (DAP-PR) in Response to 2017 Hurricanes Application and Voucher (Continued)

B Example of CCC-315

The following is an example of CCC-315.

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Notice DF-333 Exhibit 1 Completing CCC-315, Dairy Assistance Program for Puerto Rico (DAP-PR) in Response to 2017 Hurricanes Application and Voucher (Continued)

B Example of CCC-315 (Continued)

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Notice DF-333 Exhibit 2 Letter to Dairy Operations The following is the letter sent to Puerto Rico dairy operations.

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