LD 2188 LR 3036(02)
Resolve, Regarding Legislative Review of Chapter 26: Producer Margins, a Major Substantive Rule of the Maine Milk Commission
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Agriculture, Conservation and Forestry
Fiscal Note Required: Yes
Fiscal Note
FY 2023-24 FY 2024-25 Projections  FY 2025-26 Projections  FY 2026-27
Net Cost (Savings)
General Fund $0 ($26,087,585) ($26,294,402) ($26,282,483)
Other Special Revenue Funds $0 $4,088,815 $7,675,219 $9,413,714
General Fund $0 $26,087,585 $26,294,402 $26,282,483
Other Special Revenue Funds $0 ($26,087,585) ($26,294,402) ($26,282,483)
Fiscal Detail and Notes
This bill modifies and adopts a Maine Milk Commission rule that updates the producer margins for target prices within the tiers used to make payouts through the Dairy Stabilization Program. The March 2024 Report of the Revenue Forecasting Committee (RFC) includes an assumption of target prices set at 100% of the 2022 cost of production study. This bill adjusts those prices downward to 25% of the difference between the 2019 producer margins and the 2022 producer margins. This change will decrease the transfer from the General Fund to the tier program, which will increase General Fund revenue by $26,087,585 in fiscal year 2024-25 and decrease Other Special Revenue Funds revenue to the Milk Commission within the Department of Agriculture, Conservation and Forestry by the same amount. The bill includes allocations of $4,088,815 in fiscal year 2024-25 to make increased payouts through the program.    
FY 2024-25 FY 2025-26 FY 2026-27
RFC of March 1, 2024 Dairy Stabilization Program 35,476,316 45,368,943 47,100,389
  Transfer From Oxford Slot  (465,182) (476,812) (488,732)
  Transfer from General Fund 35,011,134 44,892,131 46,611,657
@Tier Target Prices ($28.90, $29.17, $27.61, $26.87)      
LD 2188 reduction of tier prices   (26,087,585) (26,294,402) (26,282,483)
@Tier Target Prices ($24.51, $23.37, $22.60, $21.88)      
Net General Fund transfer to Dairy Stabilization Program 8,923,549 18,597,729 20,329,174
This bill involves a major substantive rule. Under the provisions of the Maine Administrative Procedures Act, if the Legislature fails to take specific action either authorizing or disapproving the adoption of the rule or part of the rule, the Maine Milk Commission will be authorized to finally adopt the rule.