Milk Donation Reimbursement Program (MDRP): What Do I Need to Know?

Q: When are Plan and Certification Forms due?

A: You may apply for the MDRP on a rolling basis.  There is no deadline and applications will be processed, as received. 

Q: How often do I need to apply for a partnership?

A: You only need to apply once, per partnership.  Once approved, the partnership approval is good for the duration of the MDRP.  If a partnership is formed with a new entity, it requires the submission of new Plan and Certification forms.

Q: What will AMS reimburse?

A: Reimbursements are limited to no more than 100 percent of the difference between the Class I milk price at the plant location (where the donated milk was processed) and the lowest class price for the applicable month (either Class III or Class IV).

Q: Who is eligible to participate?

A: This program requires participation by a participating partnership made up of an eligible dairy organization and an eligible distributor. 

An eligible dairy organization is a dairy farmer, either individually or as part of a cooperative, or a dairy processor, that accounts to an FMMO pool and incurs qualified expenses by accounting to the pool for fluid milk product donations. 

An eligible distributor is a public or private non-profit organization able to distribute donated milk.

An eligible partnership is a partnership between an eligible dairy organization and an eligible distributor. A participating partnership is an eligible partnership whose application has been approved by AMS.

Q: What is the application and reimbursement process?

A:

  • Step 1: Eligible dairy organization partners with eligible distributor
  • Step 2: Eligible partnership submits a Milk Donation and Distribution Plan and Eligible Distributor Certification Form: www.ams.usda.gov/mdrp.
  • Step 3: Pending review, AMS approves eligible partnership to become participating partnership
  • Step 4: Eligible dairy organization donates fluid milk products via eligible distributor
  • Step 5: Eligible dairy organization submits MDRP Reimbursement Claim Form: www.ams.usda.gov/mdrp, and relevant documentation.
  • Step 6: AMS reimburses eligible dairy organization

Q: In addition to the MDRP Reimbursement Claim Form, what kind of documentation does my organization need to provide to receive reimbursement?

A: Your organization needs to provide proof of donation through documentation that might include, but is not be limited to: processing and shipping records; bills of lading; storage records; and/or receiving records from the eligible distributor. See the MDRP Reimbursement Claim Form Overview: www.ams.usda.gov/mdrp.

Q: My organization wants to donate dairy products, not beverage milk. Are my donations eligible for reimbursement?

A: Only Class I fluid milk products (including flavored milks) produced and processed in the United States are eligible for reimbursement under this program. 

Q: What specifications must the donated milk products meet?

A: Milk products for donation must meet the commodity specifications detailed in “Commodity Specifications for Fluid Milk and Milk Products Eligible for the Milk Donation Reimbursement Program”: www.ams.usda.gov/mdrp.

Q: How often will AMS issue reimbursement payments?

A:  Once your plan has been approved, claims can be submitted at any time.  AMS will review, process, and issue payments for reimbursement claims on a quarterly basis.

Q: Can my organization be reimbursed for transportation expenses?

A: No, this program does not reimburse for transportation expenses. 

Q: Where can I find information on classified milk prices in my area?

A: Refer to the Market Administrator Website for your area to find data on classified milk prices, as well as other statistics.

Q: When will I know if my organization’s plan was approved?

A: AMS will review applications and notify applicants regarding approval or disapproval for program participation.

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