WIC Exemption, School Lunch Reimbursement and Supply Management Reserve

                 Not all of the proceeds of the over-order obligation are distributed directly to producers on a per cwt basis.  Exemption payments are made to the six New England state’s WIC programs, and reimbursement payments are made to the region’s school districts for school milk purchases.  In addition, two payments were made to the Commodity Credit Corporation, pursuant to the congressional condition of consent.  In addition, some of the obligation proceeds are held in reserve for distribution in accordance with the regulation’s Supply Management Program. (Attachment 1a).