| Disaster
Benefits [Click
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Disaster is often
unexpected and devastating but in these hard times when disaster
but in those hard times when disaster strikes Family Dairies
USA is here to help you. Even if your farm is well insured,
can you survive the loss of income while you recover or rebuild
from the disaster? Family Dairies USA offers members relief
from loss of income during these times. The following is Family
Dairies USA disaster benefits program that can make a positive
difference during devastating times.
Family Dairies USA
will reimburse active, service fee-paying member-producers,
who at the time of their loss are marketing milk pursuant
to a valid marketing agreement with the Cooperative, for their
loss of income from the sale of milk in accordance with the
following guidelines:
Notice
of Loss: As a condition of payment under this
program, producer shall notify the Cooperative at its main
office immediately after any occurrence. Claims will not be
accepted for consideration by the Board if notification thereof
has not been received within sixty (60) days after any occurrence
which may give rise to a loss covered hereunder.
Definitions:
- “Normal production” is the average daily quantity
and quality of milk that was produced on the farm and marketed
during the pay period when the loss of production occurred,
adjusted to reflect seasonal factors and changes from the
normal farm operations.
- “Normal market value” is the price paid to
the member-producer for milk by the dairy plant which received
the member’s milk during the pay period when the loss
of production occurred, less hauling charges and marketing
service fees, times the actual loss of production.
- “Actual loss of production” is the difference
between the normal production on the farm and the production
that would be realized or realizable if reasonable measures
were taken by the member to minimize the loss.
- “Discarded milk” is milk having been harvested
or all measures to harvest milk into bulk tank or storage
unit have been taken.
- ”Producing cow” shall be considered any cow
that is producing, lactating or is currently in a dry period
awaiting lactation period and has previously been a lactating
animal.
Benefits:
- Loss of Facilities: Up to 100% of the
“normal market value” of the actual loss of
production, but not to exceed one-hundred percent (100%)
of the “normal market value” of the “normal
production” of milk on the farm for up to thirty (30)
days, if fire or wind destroys the dairy barn in which cows
are normally housed, or the milking house or milking parlor
in which milk is normally cooled and stored.
Where the milk loss cannot be determined from farm and/or
outside records, the loss shall be arrived at by multiplying
the daily average production of milk marketed from the herd
during the seven (7) days immediately preceding the loss.
Multiply that result by the net price of milk at test for
the month of disaster. Multiply that result by twenty percent
(20%) which will represent the payment from this disaster
program.
Where the loss has been reduced by rental of a temporary
milking facility a producer may be reimbursed an amount
of Five dollars ($5.00) per cow or an amount not to exceed
Five-hundred dollars ($500.00) for a thirty (30) day period.
Where if a producers “primary milking facility”
is damaged or destroyed as the result of a fire, and because
of damage or destruction a producers grade of milk goes
from “A” to “Manufacturing Grade”,
the producer will be reimbursed for the difference in pay
price between these two grades during loss period to a maximum
of thirty (30) days.
Producers shall take reasonable measures to minimize loss.
Benefits hereunder may be limited or denied where such measures
have not been taken.
- Loss Due to Snow or Flood: Up to seventy-five
percent (75%) of the “normal market value” of
the loss which results from deterioration of quality of
milk due to delay of regularly scheduled pickup resulting
from impassable snow-clogged or flooded public highways
not to exceed a maximum of five (5) days production per
occurrence. As a condition to payment, producer must have
taken reasonable measures, including provisions for emergency
storage for one (1) days normal milking on farm where milking
is done, to prevent loss.
Producers shall take reasonable measures to minimize loss.
Benefits hereunder may be
limited or denied where such measures have not been taken.
- Loss Due to Nondelivery of Electric Power due
to Natural causes:
(a.) Up to seventy-five percent (75%) of “normal market
value” of milk discarded for a period not to exceed
five (5) days due to failure of the electric power company
to deliver electricity to the farm meter.
Producers shall take reasonable measures to minimize loss.
Benefits hereunder may be limited or denied where such measures
have not been taken.
- Loss Due to Lightning:
(a.) Actual loss of income, but not to exceed Two Hundred
Dollars ($200.00) for each “producing” killed
by lightning provided the death and cause thereof is verified
by an authority recognized by the Board of Directors.
(b.) In the event of loss due to lightning disabling the
cooler compressor in the milk house, Family Dairies USA
will pay up to seventy-five percent (75%) of the “normal
market value” of the “normal production”
of milk for no more than one (1) milking, or the milk in
the tank at the time of the disaster, whichever is greater.
Actual lightning damage shall be verified by an electrician
or licensed milk equipment dealer. Payment will not be made
for loss due to lack of maintenance of equipment, such as
failure to replace fuses or replace or reset breaker. An
acid test by a plant fieldman will be required as a condition
of payment. Coordination of benefit payments by all parties
shall not exceed one hundred percent (100%) of the value
of the milk lost.
Producers shall take reasonable measures to minimize loss.
Benefits hereunder may be limited or denied where such measures
have not been taken.
General
Considerations:
- Producers shall
take reasonable measures to minimize loss. Benefits hereunder
may be limited or denied where such measures have not been
taken.
- The Board of Directors
may coordinate benefits paid by other sources for losses
described herein. These may be deducted from any amount
otherwise payable under this program to the maximum value,
except in cases of loss due to lightning. Coordination of
benefits shall not exceed Fifty percent (50%) of the amount
otherwise payable under this program.
- In the event of
a claim based upon loss due to fire under a. (1) of this
section the producer shall have the burden of establishing,
to a reasonable certainty, that such fire was not due to
any willful or negligent act or omission on the part of
the producer or attributable to the producer.
- Adjustments may
be made for production costs by virtue of reduction in production
- Adjustments may
be made where claims could be made under more than one paragraph
relating to benefits.
- In the event the
cows are condemned to a rendering or slaughter facility
by a licensed veterinarian within the five-day period of
the fire, those animals so designated shall be considered
a total loss.
- Benefits shall
cease upon sale of cows.
- In no event should
the benefit amount exceed $50,000 per farm.
- No Benefits shall
be paid in the event that the loss claimed is the result
of failures attributable to the member’s or a third
party’s use of equipment or services suffering from
a catastrophic disaster.
- These rules may
be amended at any time by the Board of Directors of Family
Dairies USA. All payments under these rules of the Disaster
Benefits Plan are subject to approval by the Cooperative
Board of Directors.
- Discretionary
action by the Board of Directors shall be a condition of
payment.
Please contact your
field representative if you feel you qualify for a disaster
benefit or have any questions regarding the program. If you
are unsure of whom your field representative is please see
the “About Us”
link, which will show you who your representative is and provide
their contact information.
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