[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1430.205]

[Page 527-528]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1430_DAIRY PRODUCTS--Table of Contents
 
               Subpart B_Milk Income Loss Contract Program
 
Sec.  1430.205  Selection of starting month.

    (a) A dairy operation that enters into a MILC with CCC must 
designate the starting production month that it desires CCC to begin 
making payments to them. The starting production month must be selected 
on or before the 15th of the month before the month for which payment is 
sought during fiscal year 2002 through fiscal year 2005. The starting 
production month must be selected on or before the 14th of the month 
before the month for which payment is sought during fiscal year 2006 and 
fiscal year 2007. If such date falls on a weekend, the dairy operation 
production start month selection must be made on the last business day 
preceding the weekend. A dairy operation cannot select a month for 
payment which:
    (1) Has already begun, except as provided in paragraph (c)(1) of 
this section;
    (2) Has already passed; or
    (3) During which no milk production was produced by the dairy 
operation.
    (b) During fiscal year 2006 only, during April 13, 2006 to May 17, 
2006, a dairy operation can select from:
    (1) Any month beginning October 2005 through May 2006, in which 
there was a payment rate in effect; or
    (2) Any month beginning June 2006 through September 2006, for which 
the payment rate is not known and in accordance with paragraph (a) of 
this section.
    (c) Dairy operations that submit a MILC after the CCC-designated 
signup period for fiscal year 2006 set forth in paragraph (b) of this 
section, but before September 30, 2007, can select the MILC production 
start month from:
    (1) The month the MILC is submitted to CCC by the dairy operation or 
the next consecutive month with a payment rate in effect following the 
month the MILC is submitted to CCC by the dairy operation, if no payment 
rate is in effect in the month the MILC is submitted;
    (2) The months remaining in the fiscal year in which the MILC is 
submitted for which the payment rate is not known in accordance with 
paragraph (a) of this section.
    (d) Dairy operations may change the production starting month on or 
before:
    (1) The 15th day of the month previously selected during fiscal 
years 2002 through 2005;
    (2) The 14th day of the month previously selected during fiscal 
years 2006 and 2007.
    (e) If a change of the production starting month is not made by the 
dates required by paragraph (d) of this section, the MILC production 
starting month cannot be changed until the next fiscal year. If the 
selected MILC production starting month is never modified, it will 
remain the same throughout the duration of the contract.
    (f) MILC payments will be made consecutively to the dairy operation 
on a monthly basis after the production starting month has been 
designated until the earlier of the following:
    (1) Payment quantity is reached in accordance with Sec.  1430.207; 
or
    (2) The end of the applicable fiscal year.
    (g)(1) During fiscal years 2002 through 2005, dairy operations that 
did not designate the month to begin receiving

[[Page 528]]

payments from CCC were issued consecutive payments on a monthly basis on 
marketed milk production beginning in the first month of the fiscal year 
with a payment rate in effect, unless FSA was notified that a month 
would be designated at a later date. During fiscal years 2006 and 2007, 
dairy operations must designate a MILC production start month to begin 
receiving payments from CCC. MILC production start month selections made 
during the signup period designated by CCC may be made as provided in 
paragraph (b)(1) of this section, otherwise MILC production start month 
selections must be made in accordance with paragraph (c) of this 
section.
    (2) Dairy operations with MILC production start months that begin 
with the month a MILC is submitted to FSA or that begin with the first 
month of the fiscal year with an effective payment rate will receive 
payments made by CCC consecutively on a monthly basis until the earlier 
of the following:
    (i) The maximum payment quantity is reached as determined in 
accordance with Sec.  1430.207; or
    (ii) The end of the applicable fiscal year.
    (h) All producers involved in the dairy operation must agree to the 
month designated. The dairy operation assumes the risk of not reaching 
the maximum payment quantity based on the month selected by the dairy 
operation. Payments will not be issued for past months for the sole 
purpose of reaching the maximum payment quantity.

[71 FR 19622, Apr. 17, 2006]