July 31 Quota
 Court Hearing
: 
FAQ with Western United Dairies

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
QIPs 
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 
WUDs 
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 boards 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 
WUDs 
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 boards 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 farmersvoting 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
QIPs 
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) Sixtyfive 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) Fiftyone 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.

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