Sec. 2. 7 MRSA §§3153-B and 3153-C are enacted to read:

§3153-B. Dairy stabilization

1.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A. "Annual production" means the total quantity of milk produced in a 12-month period beginning June 1st and ending May 31st of the next calendar year. Total quantity is expressed in hundredweight.

B. "Base price" means the price of milk calculated each month in accordance with subsection 2.

C.__"Suffolk County price" means the Suffolk County, Massachusetts statistical uniform price of milk as determined for each month by the Northeast Market Administrator of the United States Department of Agriculture and expressed per hundredweight of milk.

D.__"Target price" means the short-run break-even point for each of 3 categories of annual production. Target prices are determined in accordance with subsection 3.

2.__Calculation of base price.__Base price is calculated each month by adding to the Suffolk County price:

A.__The amount per hundredweight paid to milk producers in the State as monthly premiums established by the Maine Milk Commission under section 2954, subsection 1; and

B.__The amount per hundredweight received by milk producers as a monthly payment from the Federal Government due to low milk prices.

Cost-of-production adjustments established under section 2954, subsection 2, paragraph A are not considered premiums for the purpose of calculating base price.

3.__Determination of target prices.__The Maine Milk Commission shall establish 3 tiers of production, each