Title 7AgricultureRelease 119-73

§4551 Indemnity payments to dairy farmers and manufacturers of dairy products; milk removed for its residue of chemical or toxic substances; nuclear radiation or fallout contaminants; other legal recourse

Title 7 › Chapter CHAPTER 76— - DAIRY RESEARCH AND PROMOTION › Subchapter SUBCHAPTER III— - INDEMNITY PAYMENTS TO DAIRY FARMERS › § 4551

Last updated Apr 6, 2026|Official source

Summary

The Secretary of Agriculture can pay dairy farmers and makers of dairy products the fair market value for milk, cows that produce milk, or dairy products that officials ordered removed from sale. Farmers ordered to remove milk since January 1, 1964 (but for payments not allowed before August 10, 1973 only since August 10, 1973) and manufacturers ordered to remove dairy products since November 30, 1970 qualify when the removal was for residues of chemicals that were registered and approved when used. The Secretary can also pay when removal is because of nuclear radiation or fallout, if the contamination was not the farmer’s fault. Payments also cover other chemical or toxic residues if the farmer followed rules and label directions and was not at fault. No payment will be made if, within thirty days after the farmer applies, the Secretary finds another legal way to recover money. Payments continue until the farmer is allowed to sell milk again.

Full Legal Text

Title 7, §4551

Agriculture — Source: USLM XML via OLRC

The Secretary of Agriculture is authorized to make indemnity payments for milk or cows producing such milk at a fair market value, to dairy farmers who have been directed since January 1, 1964 (but only since August 10, 1973, in the case of indemnity payments not authorized prior to August 10, 1973), to remove their milk, and to make indemnity payments for dairy products at fair market value to manufacturers of dairy products who have been directed since November 30, 1970, to remove their dairy products from commercial markets because of residues of chemicals registered and approved for use by the Federal Government at the time of such use. The Secretary is also authorized to make indemnity payments for milk, or cows producing such milk, at a fair market value to any dairy farmer who is directed to remove his milk from commercial markets because of (1) the presence of products of nuclear radiation or fallout if such contamination is not due to the fault of the farmer, or (2) residues of chemicals or toxic substances not included under the first sentence of this section if such chemicals or toxic substances were not used in a manner contrary to applicable regulations or labeling instructions provided at the time of use and the contamination is not due to the fault of the farmer: Provided, That no indemnity payment may be made for contamination resulting from such residues of chemicals or toxic substances if the Secretary determines within thirty days after the date of application for payment that other legal recourse is available to the farmer. Any indemnity payment to any farmer shall continue until he has been reinstated and is again allowed to dispose of his milk on commercial markets.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Section was formerly classified to section 450j of this title prior to editorial reclassification and renumbering as this section. Section was enacted as part of Pub. L. 90–484, and not as part of the Dairy Production Stabilization Act of 1983 which comprises this chapter.

Prior Provisions

The following Acts authorized indemnity payments for the periods ending as indicated:
June 30, 1968—Pub. L. 90–95, § 1, Sept. 28, 1967, 81 Stat. 231.
June 30, 1967—Pub. L. 89–794, title III, § 301(c), Nov. 8, 1966, 80 Stat. 1465.
June 30, 1966—Pub. L. 89–253, § 24, Oct. 9, 1965, 79 Stat. 977.
June 30, 1965—Pub. L. 89–16, title III, § 303, Apr. 30. 1965, 79 Stat. 108. Jan. 31, 1965—Pub. L. 88–452, title III, § 331, Aug. 20, 1964, 78 Stat. 525.

Amendments

1977—Pub. L. 95–113 authorized indemnity payments for milk, or cows producing such milk, at a fair market value to any dairy farmer who is directed to remove his milk from commercial markets because of the presence of products of nuclear radiation or fallout if such contamination is not due to the fault of the farmer, or because of residues of chemicals or toxic substances not included under the first sentence of this section if such chemicals or toxic substances were not used in a manner contrary to applicable

Regulations

or labeling instructions provided at the time of use and the contamination is not due to the fault of the farmer, and inserted provision that no indemnity payment may be made for contamination resulting from residues of chemicals or toxic substances if the Secretary determines within thirty days after the date of application for payment that other legal recourse is available to the farmer. 1973—Pub. L. 93–86 inserted “for milk or cows producing such milk” after “The Secretary of Agriculture is authorized to make indemnity payments” and “(but only since
August 10, 1973, in the case of indemnity payments not authorized prior to
August 10, 1973)” after “
January 1, 1964” and substituted “, and to make indemnity payments for dairy products at fair market value to” for “and” after “remove their milk” and “of” for “it contained” before “residues of chemicals”. 1970—Pub. L. 91–524 inserted “and manufacturers of dairy products who have been directed since
November 30, 1970, to remove their dairy products,” after “milk”, in first sentence, and substituted “Any indemnity payment to any farmer shall continue” for “Such indemnity payments shall continue to each dairy farmer” in second sentence.

Statutory Notes and Related Subsidiaries

Effective Date

of 1977 AmendmentAmendment by Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title.

Reference

Citations & Metadata

Citation

7 U.S.C. § 4551

Title 7Agriculture

Last Updated

Apr 6, 2026

Release point: 119-73