WASHINGTON, March 5, 2008 - Eligible dairy producers who suffered production losses in 2005, 2006 or 2007 may apply to receive benefits under the Dairy Disaster Assistance Program III, beginning March 5, the U.S. Department of Agriculture announced today.

Producers can sign up at their local USDA Farm Service Agency (FSA) service center until May 5, when sign-up will end.

This dairy program will provide $16 million in benefits to dairy producers for dairy production losses that occurred between Jan. 1, 2005, and Dec. 31, 2007, because of natural disasters. To be eligible, a producer's operation must be in a county designated a major disaster or emergency area by the president or declared a natural disaster area by the secretary of agriculture between Jan. 1, 2005, and Dec. 31, 2007. Producers in contiguous counties are also eligible. Producers in counties declared disaster areas by the president may be eligible, even though the agricultural loss was not covered by the declaration, if an FSA Administrator's Physical Loss Notice covered such losses.

The U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 (2007 Act), signed by President Bush in May 2007, authorizes this program. The 2007 Act charges USDA with implementing under the Dairy Disaster Assistance Program III (DDAP-III). The 2007 Act provides $16 million in DDAP-III benefits. On Dec. 26, 2007, President Bush signed the Consolidated Appropriations Act, 2008, which extends DDAP-III payments to eligible producers who suffered dairy production losses throughout the 2007 crop year before Dec. 31, 2007.

FSA began enrolling producers in DDAP-III in late 2007 and early 2008, then temporarily halted sign-up pending the completion of rulemaking which began with the issuance of a proposed rule for public comments on the program. Based on public comments, FSA made minor changes to the proposed DDAP-III rules. These changes are explained in the final DDAP-III regulations, which were published in the March 4 Federal Register.