4.__Distribution of dairy stabilization support. Beginning July 1, 2004 for each month that the base price is below the target price, the administrator of the Maine Milk Pool shall distribute to each milk producer in the State an amount of money equal to the previous month's production in hundredweight multiplied by the difference between the applicable target price and the base price in the previous month.

§3153-C.__Milk Income Loss Contract

1.__Milk Income Loss Contract.__For months in which payments are made under the federal Milk Income Loss Contract authorized by Section 1502 of the federal Farm Security and Rural Investment Act of 2002, the administrator of the Maine Milk Pool shall make payments to those milk producers in the State whose annual production exceeds the cap under the federal Milk Income Loss Contract.__The administrator shall distribute an amount per hundredweight equal to the federal Milk Income Loss Contract payment for that month for production in excess of the federal limit until that producer's annual production reaches 5,000,000 pounds. No payment is made under this section for annual production in excess of 5,000,000 pounds.__ For purposes of this section, "annual production" has the same meaning as in section 3153-B, subsection 1, paragraph A.

Sec. 3. Target prices. Notwithstanding the Maine Revised Statutes, Title 7, section 3153-B, subsection 3, for the fiscal year beginning July 1, 2004 and until the Maine Milk Commission updates the Maine producer cost-of-production data and calculates new target prices, the target prices for Maine milk producers are as follows:

1. For the first 16,790 hundredweight produced per year by each producer, the target price is $16.18 per hundredweight;

2. For production between 16,790 hundredweight and 26,050 hundredweight per year, the target price is $15.59 per hundredweight; and

3. For production in excess of 26,050 hundredweight per year, the target price is $13.12 per hundredweight.

Sec. 4. Ad hoc committee. The Department of Agriculture, Food and Rural Resources shall develop a course of action for implementing the recommendations of the Governor's Task Force on the Sustainability of the Dairy Industry in Maine as presented in