Q: What is the program timeline?
- Program established on September 16, 2019
- Fiscal Year 2019 (FY19) and Fiscal Year 2020 (FY20) Plans due by November 6, 2019
- Plans will be approved by December 23, 2019
- FY19 Claims due by February 6, 2020
- FY20 Claims will be processed quarterly once plans have been approved. Deadline for claim submissions:December 31, 2020
Q: What will AMS reimburse?
A: AMS will approve a reimbursement rate (not to exceed 100 percent) and a total dollar amount for the fiscal year. Approvals will be based on the quantity of proposed donations and price forecasts.
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?
- Step 1: Eligible dairy organization partners with eligible distributor
- Step 2: Eligible partnership submits a joint Milk Donation and Distribution Plan
- 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; and relevant documentation
- Step 6: AMS reimburses eligible dairy organization
Q: Can my organization be reimbursed for donations made prior to the start of this program?
A: Eligible dairy organizations may claim reimbursements for donations made during FY19 (October 1, 2018, through September 30, 2019). Organizations must still apply for eligibility by submitting a Milk Donation and Distribution Plan (link) and Spreadsheet (link). Once the plan is approved, eligible dairy organizations can then submit documentation to receive reimbursement.
Q: My organization donated milk without partnering with a non-profit. Is my organization still eligible for reimbursement?
A: To be eligible for retroactive reimbursement for FY19 and FY20, your organization will still need to apply to be a participating partnership by submitting a Milk Donation and Distribution Plan with your distributor by the announced deadline.
Q: In addition to the claim reimbursement form and spreadsheet, 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.
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 the Commodity Specifications for Fluid Milk and Milk Products Eligible for the Milk Donation Reimbursement Program (pdf).
Q: What if my organization donates more milk than anticipated in our Donation and Distribution Plan?
A: Your organization may apply for a reimbursement increase using the MDRP Reimbursement Increase form. In this form, your organization must detail the changing conditions that warrant the increase.
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: 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: Where can I find information on class prices in my area?
A: Refer to the Market Administrator Website for your area to find data on class prices, as well as other statistics.
Q: When will I know if my organization’s plan was approved?
A: Within 45 days of the announced application deadline, AMS will review applications and notify applicants regarding approval or disapproval for program participation.