As we approach the Stop QIP v CDFA court hearing date rescheduled for July 31, we received a lot of questions on the topic and if this proceeding is different than the Chapter 3.5 hearing we went through in June. Below you will find a list of commonly asked questions as well as a few others of interest regarding quota.
If QIP is terminated via Stop QIP’s Chapter 3.5 referendum, will there be a payment to compensate quota holders?
No. The only question before the Secretary is whether to suspend Chapter 3.5 and thereby terminate the QIP immediately.
• What has WUD’s role been through the Chapter 3.5 hearing?
WUD submitted historical, contextual and background information as testimony to the administrative law judge presiding over the hearing. It has been the board’s position that a vote on the QIP should happen the way it did to implement it, following the rules in Chapter 3.0.
• What has WUD’s role been through the Stop QIP v CDFA litigation?
WUD filed an amicus curiae brief to submit historical, contextual and background information in the matter. It has been the board’s position that dairy farmers have the right to decide whether quota stays or not. A law- suit to eliminate QIP without a referendum strips dairy farmers’ voting rights away.
• What is the court hearing date for the Stop QIP v CDFA litigation and how can I listen or participate?
The hearing will take place on July 31 at 10:00 a.m. You will be able to listen to the proceedings live HERE, but participation from individual producers will not be possible. There could be a tentative decision announced as early as Monday. But be aware a tentative decision does not mean this is an official conclusion. The parties still have an opportunity to present argument to the court after a tentative ruling has been announced, and the court may reach a different conclusion or change other aspects of its ruling after the hearing.
• When will the decision be made on Stop QIP’s Chapter 3.5 petition?
We are still waiting on the administrative law judge to announce his decision. There is no set date for a decision.
What is the voting threshold for a referendum to suspend Chapter 3.5?
This referendum threshold is found in Section 62755 of Chapter 3.5: The secretary shall find that producers have assented to the continued operation of this chapter if the secretary finds on a statewide basis that not less than 51 percent of the total number of eligible producers in the state have voted in the referendum and that 51 percent or more of the total number of eligible producers who voted in the referendum and who produced 51 percent or more of the total amount of fluid milk produced in the state during the calendar month next preceding the month of the commencement of the referendum period by all producers who voted in the referendum, approve the continued operation of this chapter. In other words, in order to suspend Chapter 3.5, either (1) fewer than 51% of the eligible producers vote in the referendum, or (2) 49.1% of the voting producers or voting milk vote against continuing the chapter.
• What was the referendum threshold used to vote QIP in?
The referendum threshold is found in Section 62717 of Chapter 3: The director shall find that producers have assented to the plan if he finds on a statewide basis that not less than 51 percent of the total number of eligible producers in the state shall have voted in the referendum and finds one of the following:
(a) Sixty–five percent or more of the total number of eligible producers who voted in the referendum who produced 51 percent or more of the total amount of fluid milk produced in the state during the calendar month next preceding the month of the commencement of the referendum period by all producers who voted in the referendum approve the plan.
(b) Fifty–one percent or more of the total number of eligible producers who voted in the referendum who produced 65 percent or more of the total amount of fluid milk produced in the state during the calendar month next preceding the month of the commencement of the referendum period by all producers who voted in the referendum, approve the plan.
• If the administrative law judge concludes that a Chapter 3.5 referendum does not apply to a petition to terminate the QIP, can the Secretary use her discretion and still hold a referendum with the Chapter 3 threshold instead?
No. The call of the hearing was dictated by Stop QIP’s Chapter 3.5 petition. The Stop QIP petition only requested a Chapter 3.5 referendum to suspend Chapter 3.5 and thereby terminate the QIP; it did not ask for a Chapter 3 referendum.
• Can quota sales occur while we wait for decisions in these matters?
Yes. A farmer can sell quota as long as it was acquired more than five years ago. Exceptions include family transfers or interstate succession. If a farmer sold quota, he has to wait 24 months before he can buy more (same exceptions apply).
• What was the latest quota price?
The latest reported sale was in June and the average was $150/lb. SNF.
