I 

110TH CONGRESS 

1ST SESSION H. R. 2462 

To amend the Farm Security and Rural Investment Act of 2002 to promote 

growth and opportunity for the dairy industry in the United States, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 23, 2007 

Mr. HOLDEN introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committee on Ways and 

Means, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Farm Security and Rural Investment Act 

of 2002 to promote growth and opportunity for the dairy 

industry in the United States, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. REPEAL OF DAIRY PRICE SUPPORT PROGRAM. 

4 (a) IN GENERAL.—Section 1501 of the Farm Secu5 rity and Rural Investment Act of 2002 (7 U.S.C. 7981) 

6 is repealed. 


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1 (b) CONFORMING AMENDMENT.—Section 1507 of the 

2 Farm Security and Rural Investment Act of 2002 (7 

3 U.S.C. 7983) is repealed. 

4 SEC. 2. MILK TARGET PRICE PROGRAM. 

5 Section 1502 of the Farm Security and Rural Invest6 ment Act of 2002 (7 U.S.C. 7982) is amended— 

7 (1) by striking the section heading and insert8 ing ‘‘MILK TARGET PRICE PROGRAM’’; 

9 (2) in subsection (a), by striking paragraph (1) 

10 and inserting the following: 

11 ‘‘(1) CLASS III MILK.—The term ‘Class III 

12 milk’ means milk (including milk components) classi13 fied as milk for manufacturing purposes under a 

14 Federal milk marketing order.’’; 

15 (3) by striking subsection (c) and inserting the 

16 following: 

17 ‘‘(c) AMOUNT.— 

18 ‘‘(1) IN GENERAL.—Subject to paragraph (3), 

19 payments to a producer under this section shall be 

20 calculated by multiplying (as determined by the Sec21 retary)— 

22 ‘‘(A) the payment quantity for the pro23 ducer during the applicable month established 

24 under subsection (d); by 

25 ‘‘(B) the amount equal to— 


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1 ‘‘(i) $12.00 per hundredweight (as ad2 justed under paragraph (2); less 

3 ‘‘(ii) the Class III milk price per hun4 dredweight under the applicable Federal 

5 milk marketing order. 

6 ‘‘(2) FEED PRICE INDEX AND ADJUSTMENT

7 FACTOR.— 

8 ‘‘(A) FEED PRICE INDEX.—The Secretary 

9 shall develop a feed price index, using a base10 line period of calendar years 2001 through 

11 2005, to reflect the feed cost of producing 100 

12 pounds of milk. 

13 ‘‘(B) FEED ADJUSTMENT FACTOR.—The 

14 Secretary shall establish a feed adjustment fac15 tor that reflects changes in the feed price index, 

16 as determined by the Secretary. 

17 ‘‘(C) ADJUSTMENT.—Each month that 

18 there is an increase in the feed price index, the 

19 Secretary shall adjust the amount described in 

20 paragraph (1)(B)(i) to reflect any increases in 

21 the feed adjustment factor. 

22 ‘‘(3) MAXIMUM AMOUNT.—The maximum an23 nual payment for all producers on a single dairy op24 eration during the months of the applicable fiscal 


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1 year for which the producers receive payments under 

2 this section shall not exceed $50,000.’’; and 

3 (4) in subsections (f) and (g)(1), by striking 

4 ‘‘September 30, 2007’’ both places it appears and 

5 inserting ‘‘September 30, 2012’’. 

6 SEC. 3. DAIRY OPTIONS PROGRAM. 

7 Subtitle E of title I of the Farm Security and Rural 

8 Investment Act of 2002 (7 U.S.C. 7981 et seq.) is amend9 ed by adding at the end the following: 

10 ‘‘SEC. 1509. DAIRY OPTIONS PROGRAM. 

11 ‘‘(a) ESTABLISHMENT.—The Secretary shall carry 

12 out a nationwide program under similar terms and condi13 tions as the Secretary used to carry out the dairy options 

14 pilot program established in accordance with section 191 

15 of the Federal Agricultural Improvement Reform Act of 

16 1996 (7 U.S.C. 7331). 

17 ‘‘(b) FUNDING.— 

18 ‘‘(1) COMMODITY CREDIT CORPORATION.—The 

19 Secretary shall use the funds, facilities, and authori20 ties of the Commodity Credit Corporation to carry 

21 out this section. 

22 ‘‘(2) FUNDING AMOUNT.—Of the funds of the 

23 Commodity Credit Corporation, the Secretary shall 

24 use to carry out this section $25,000,000 for each 


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1 of fiscal years 2008 through 2012, to remain avail2 able until expended. 

3 ‘‘(3) BUDGET NEUTRALITY.—To the maximum 

4 extent practicable, the Secretary shall operate the 

5 program in a budget neutral manner.’’. 

6 SEC. 4. RECOURSE LOAN PROGRAM FOR COMMERCIAL 

7 PRODUCERS OF DAIRY PRODUCTS. 

8 Subtitle E of title I of the Farm Security and Rural 

9 Investment Act of 2002 (7 U.S.C. 7981 et seq.) (as 

10 amended by section 3) is amended by adding at the end 

11 the following: 

12 ‘‘SEC. 1510. RECOURSE LOAN PROGRAM FOR COMMERCIAL 

13 PRODUCERS OF DAIRY PRODUCTS. 

14 ‘‘(a) DEFINITION OF ELIGIBLE DAIRY PRODUCTS.— 

15 In this section, the term ‘eligible dairy products’ means 

16 cheddar cheese, butter, and nonfat dry milk. 

17 ‘‘(b) PROGRAM.—Effective beginning on September 

18 30, 2007, the Secretary shall make recourse loans avail19 able to commercial processors of eligible dairy products— 

20 ‘‘(1) to assist the processors to manage inven21 tories of eligible dairy products; and 

22 ‘‘(2) to ensure a greater degree of price stability 

23 for the dairy industry. 

24 ‘‘(c) AMOUNT OF LOAN.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall estab2 lish a loan rate for eligible dairy products, that re3 flects a milk equivalent value of $9.90 per hundred4 weight of milk containing 3.67 percent butterfat, as 

5 determined by the Secretary. 

6 ‘‘(2) INTEREST.—The Secretary shall charge a 

7 processor that receives a recourse loan under this 

8 section a rate of interest that is not less than the 

9 rate of interest that the Secretary of the Treasury 

10 charges the Commodity Credit Corporation, as de11 termined by the Secretary. 

12 ‘‘(d) PERIOD OF LOAN.— 

13 ‘‘(1) IN GENERAL.—The original term of a re14 course loan made under this section may not extend 

15 beyond the end of the fiscal year in which the loan 

16 is made. 

17 ‘‘(2) EXTENSION.—At the end of a fiscal year, 

18 the Secretary may extend a recourse loan for an ad19 ditional period not to exceed the end of the next fis20 cal year.’’. 

21 SEC. 5. MILK REVENUE INSURANCE PILOT PROGRAM. 

22 Section 523 of the Federal Crop Insurance Act (7 

23 U.S.C. 1523) is amended by adding at the end the fol24 lowing: 

25 ‘‘(f) MILK REVENUE INSURANCE PILOT PROGRAM.— 


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1 ‘‘(1) IN GENERAL.—During each of crop years 

2 2008 through 2012, the Corporation shall carry out 

3 a pilot program under which producers on a dairy 

4 farm may elect to receive insurance against loss of 

5 revenue due to natural disasters and price fluctua6 tions, as determined by the Corporation, based on 

7 the average revenue received by producers for each 

8 cow during the 5-year period ending the preceding 

9 crop year. 

10 ‘‘(2) REQUIREMENTS.—The Corporation shall 

11 carry out the pilot program under this section using 

12 similar terms and conditions as were contained in 

13 the crop insurance policy proposal entitled ‘Milk 

14 Revenue Policy (from bovine animals)’ submitted to 

15 the Board on April 26, 2007, in accordance with 

16 section 508(h).’’. 

17 SEC. 6. FEDERAL MILK MARKETING ORDERS. 

18 (a) 2-CLASS SYSTEM FOR CLASSIFYING MILK.— 

19 (1) IN GENERAL.—Not later than September 

20 30, 2008, the Secretary of Agriculture shall conduct 

21 a study of the economic benefits to milk producers 

22 of establishing a 2-class system for classifying milk 

23 under Federal milk marketing orders issued under 

24 section 8c(5) of the Agricultural Adjustment Act (7 

25 U.S.C. 608c(5)), reenacted with amendments by the 


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1 Agricultural Marketing Agreement Act of 1937, con2 sisting of a fluid milk class and a manufacturing 

3 grade milk class (with the price for both classes de4 termined using the component prices of butterfat, 

5 protein, and other solids). 

6 (2) AMENDMENT TO ORDERS.—If the Secretary 

7 determines (on the basis of the study conducted 

8 under paragraph (1)) that a 2-class system for 

9 classifying milk under Federal milk marketing or10 ders would have a positive impact on milk producers, 

11 the Secretary shall amend Federal milk marketing 

12 orders to implement the 2-class system for 

13 classifying milk. 

14 (b) DEADLINE FOR ISSUANCE OF ORDERS.—Section 

15 8c(4) of the Agricultural Adjustment Act (7 U.S.C. 

16 608c(4)), reenacted with amendments by the Agricultural 

17 Marketing Agreement Act of 1937, is amended by striking 

18 ‘‘After’’ and inserting ‘‘Not later than 30 days after’’. 

19 (c) ADVANCED PRICING.—Section 8c(5) of the Agri20 cultural Adjustment Act (7 U.S.C. 608c(5)), reenacted 

21 with amendments by the Agricultural Marketing Agree22 ment Act of 1937, is amended by adding at the end the 

23 following: 

24 ‘‘(P) ADVANCED PRICING.—Not later than 

25 September 30, 2007, in calculating the adVerDate Aug 31 2005 22:08 Jun 04, 2007 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2462.IH H2462

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1 vanced price of Class I butterfat milk and Class 

2 I and II skim milk under Federal milk mar3 keting orders, the Secretary shall use the 4- 

4 week component prices that are used to cal5 culate prices for Class III and Class IV milk, 

6 as determined by the Secretary.’’. 

7 (d) ECONOMIC IMPACT ASSESSMENT.—The Sec8 retary of Agriculture shall— 

9 (1) carry out a review of the milk-feed ratio 

10 during the 1-year period ending on the date of en11 actment of this Act; and 

12 (2) not later than September 30, 2008, and 

13 each time a proposed change in the Federal milk 

14 marketing order formulas is considered by the Sec15 retary— 

16 (A) assess the economic impact, over a 1- 

17 and 2-year period, of proposed changes in Fed18 eral milk marketing order formulas on— 

19 (i) milk supply; 

20 (ii) farm profitability; 

21 (iii) consumer demand; and 

22 (iv) market prices; 

23 (B) submit to the Committee on Agri24 culture of the House of Representatives and the 

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1 estry a report that describes the results of the 

2 assessment; and 

3 (C) consider, and include in the record, the 

4 results of the assessment before making a deci5 sion on any proposed change to the Federal 

6 milk marketing order formulas. 

7 SEC. 7. DAIRY FORWARD PRICING PROGRAM. 

8 Section 23 of the Agricultural Adjustment Act (7 

9 U.S.C. 627), reenacted with amendments by the Agricul10 tural Marketing Agreement Act of 1937, is amended— 

11 (1) in the section heading by striking ‘‘PILOT’’; 

12 (2) in subsection (a)— 

13 (A) by striking ‘‘PILOT PROGRAM RE14 QUIRED.—’’ and all that follows through ‘‘pilot’’ 

15 and inserting ‘‘IN GENERAL.—The Secretary of 

16 Agriculture shall carry out a’’; 

17 (B) by striking ‘‘under which milk pro18 ducers’’ and inserting ‘‘under which— 

19 ‘‘(1) milk producers’’.; and 

20 (C) by striking ‘‘handlers.’’ and inserting 

21 ‘‘handlers; and 

22 ‘‘(2) proprietary processors and cooperatives 

23 regulated under Federal milk marketing orders are 

24 authorized to voluntarily enter into forward price 


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1 contracts with the members of the processors and 

2 cooperatives.’’; 

3 (3) by striking subsections (d) and (e); and 

4 (4) by adding at the end the following: 

5 ‘‘(d) FUNDING.— 

6 ‘‘(1) COMMODITY CREDIT CORPORATION.—The 

7 Secretary shall use the funds, facilities, and authori8 ties of the Commodity Credit Corporation to carry 

9 out this section. 

10 ‘‘(2) FUNDING AMOUNT.—The Secretary shall 

11 use such funds of the Commodity Credit Corporation 

12 as are necessary to carry out this section for each 

13 of fiscal years 2008 through 2012, to remain avail14 able until expended.’’. 

15 SEC. 8. DAIRY PROCESSING EQUIPMENT LOAN GUARANTEE 

16 FUND. 

17 (a) LOANS.— 

18 (1) IN GENERAL.—Section 310B(a) of the Con19 solidated Farm and Rural Development Act (7 

20 U.S.C. 1932(a)) is amended— 

21 (A) by designating the first through fifth 

22 sentences as paragraphs (1) through (5), re23 spectively; 

24 (B) by striking ‘‘SEC. 310B. (a) The Sec25 retary’’ and inserting the following: 


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1 ‘‘SEC. 310B. RURAL INDUSTRIALIZATION ASSISTANCE. 

2 ‘‘(a) LOANS.— 

3 ‘‘(1) IN GENERAL.—The Secretary’’; 

4 (C) by striking ‘‘for the purposes of (1) 

5 improving’’ and inserting ‘‘for the purposes 

6 of— 

7 ‘‘(A) improving’’; 

8 (D) by striking ‘‘abatement and control, 

9 (2) the conservation’’ and inserting ‘‘abatement 

10 and control; 

11 ‘‘(B) the conservation’’; 

12 (E) by striking ‘‘rural areas, (3) reducing’’ 

13 and inserting ‘‘rural areas; 

14 ‘‘(C) reducing’’; 

15 (F) by striking ‘‘rural areas, and (4) to fa16 cilitate economic’’ and inserting ‘‘rural areas; 

17 ‘‘(D) facilitating economic’’; and 

18 (G) by striking ‘‘foreign trade.’’ and insert19 ing ‘‘foreign trade; and 

20 ‘‘(E) providing processors of dairy prod21 ucts with incentives for investing in new equip22 ment and technologies by using not more than 

23 $15,000,000 each fiscal year to— 

24 ‘‘(i) make loans to dairy processors 

25 and cooperatives to cover not more than 50 

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1 tion of new equipment, equipment up2 grades, and new technologies— 

3 ‘‘(I) at a fixed rate of interest 

4 not to exceed the prime lending rate 

5 plus 1 percent; and 

6 ‘‘(II) with a term of not to ex7 ceed 15 years; and 

8 ‘‘(ii) guarantee loans made to dairy 

9 processors and cooperatives for the acquisi10 tion and adoption of new dairy equipment, 

11 equipment upgrades, and new technologies, 

12 at a guarantee rate of 90 percent.’’. 

13 (2) CONFORMING AMENDMENTS.— 

14 (A) Section 307(a)(6)(B)(ii) of the Con15 solidated Farm and Rural Development Act (7 

16 U.S.C. 1927(a)(6)(B)(ii)) is amended by strik17 ing ‘‘clause (1) of section 310B(a)’’ and insert18 ing ‘‘section 310B(a)(1)(A)’’. 

19 (B) Section 333A(g)(1)(B) of the Consoli20 dated Farm and Rural Development Act (7 

21 U.S.C. 1983a(g)(1)(B)) is amended by striking 

22 ‘‘310B(a)(1)’’ and inserting ‘‘310(a)(1)(A)’’. 

23 (C) Section 381E(d)(3)(B) of the Consoli24 dated Farm and Rural Development Act (7 


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1 U.S.C. 2009d(d)(3)(B)) is amended by striking 

2 ‘‘310B(a)(1)’’ and inserting ‘‘310B(a)(1)(A)’’. 

3 (b) LENDING POWER FOR DAIRY PROCESSING CO4 OPERATIVES.—Section 3.7 of the Farm Credit Act of 

5 1971 (12 U.S.C. 2128) is amended by adding at the end 

6 the following: 

7 ‘‘(g) DAIRY PROCESSING COOPERATIVES.— 

8 ‘‘(1) IN GENERAL.—The banks for cooperatives 

9 may use not more than $15,000,000 each fiscal year 

10 to provide dairy processing cooperatives with work11 ing capital lines of credit and accounts receivable fi12 nancing for the purpose of accessing export mar13 keting opportunities for milk and milk products. 

14 ‘‘(2) LIMITATIONS.—Financing provided by the 

15 banks for cooperatives for a project under paragraph 

16 (1) may not exceed the lesser of— 

17 ‘‘(A) $1,000,000; or 

18 ‘‘(B) 75 percent of the costs of carrying 

19 out the project. 

20 ‘‘(3) TERM.— 

21 ‘‘(A) IN GENERAL.—Except as provided in 

22 subparagraph (B), the term of a line of credit 

23 described in paragraph (1) shall not exceed 24 

24 months. 


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1 ‘‘(B) REVOLVING LINES OF CREDIT.—A 

2 revolving line of credit may be used for multiple 

3 transactions. 

4 ‘‘(4) DUE DATE.—An accounts receivable fi5 nancing loan under this subsection shall be due on 

6 the earlier of— 

7 ‘‘(A) the date on which the receivable is 

8 paid; or 

9 ‘‘(B) 180 days after the date of disburse10 ment. 

11 ‘‘(5) USE OF FINANCING.— 

12 ‘‘(A) WORKING CAPITAL LINE OF CREDIT

13 FINANCING.—Working capital line of credit fi14 nancing under this subsection may be used— 

15 ‘‘(i) to acquire inventory for the pro16 duction of milk; 

17 ‘‘(ii) to pay direct and indirect costs 

18 (such as design, engineering, labor, and 

19 overhead costs) used for— 

20 ‘‘(I) the manufacture or purchase 

21 of goods, including work-in-process, 

22 for the production of milk; or 

23 ‘‘(II) for the provision of services 

24 for the production of milk; or 


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1 ‘‘(iii) to support standby letters of 

2 credit used as bid bonds, performance 

3 bonds, or payment guarantees. 

4 ‘‘(B) ACCOUNTS RECEIVABLE FINANC5 ING.—Accounts receivable financing under this 

6 subsection may be used to finance export ac7 counts receivables for milk and milk products 

8 sold on payment terms of not more than 180 

9 days after the date of arrival at the port of im10 portation, if the finance export accounts receiv11 able have been insured by the Commodity Cred12 it Corporation or other guarantor approved by 

13 the Secretary.’’. 

14 SEC. 9. FEDERAL LOAN FORGIVENESS PROGRAM. 

15 The National Agricultural Research, Extension, and 

16 Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is 

17 amended by adding at the end the following: 

18 ‘‘Subtitle P—Federal Dairy 

19 Education Loan Forgiveness 

20 ‘‘SEC. 1495. SHORT TITLE. 

21 ‘‘This subtitle may be cited as the ‘Federal Dairy 

22 Education Loan Forgiveness Act’. 

23 ‘‘SEC. 1496. DEFINITIONS. 

24 ‘‘In this subtitle: 


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1 ‘‘(1) FAMILY DAIRY FARM.—The term ‘family 

2 dairy farm’ means the real property of a dairy 

3 farm— 

4 ‘‘(A) owned by— 

5 ‘‘(i) 1 or more immediate family mem6 bers; or 

7 ‘‘(ii) a family dairy farm corporation; 

8 and 

9 ‘‘(B) used for the production, for commer10 cial purposes, of milk or milk products. 

11 ‘‘(2) FAMILY DAIRY FARM CORPORATION.—The 

12 term ‘family dairy farm corporation’ means a cor13 poration— 

14 ‘‘(A) at least 75 percent of the assets of 

15 which are devoted to active involvement in 

16 farming; and 

17 ‘‘(B) at least 75 percent of each class of 

18 stock of which is continuously owned by 1 or 

19 more immediate family members. 

20 ‘‘(3) IMMEDIATE FAMILY MEMBER.—The term 

21 ‘immediate family member’ means a spouse, child, 

22 stepchild, parent, stepparent, grandparent, brother, 

23 stepbrother, sister, stepsister, or similar relative-in24 law of an owner of real property, as determined by 

25 the Secretary. 


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1 ‘‘(4) INSTITUTION OF HIGHER EDUCATION.— 

2 The term ‘institution of higher education’ has the 

3 meaning given the term in section 101(a) of the 

4 Higher Education Act of 1965 (20 U.S.C. 1001(a)). 

5 ‘‘(5) PROGRAM.—The term ‘program’ means 

6 the Federal dairy education loan forgiveness pro7 gram established under section 1497(a). 

8 ‘‘(6) QUALIFIED APPLICANT.—The term ‘quali9 fied applicant’ means a resident of the United States 

10 who, as determined by the Secretary— 

11 ‘‘(A) holds a 2- or 4-year degree in a field 

12 related to the production of agricultural prod13 ucts from an institution of higher education; 

14 ‘‘(B) on or after January 1, 2008, has 

15 commenced the first year of full-time ownership 

16 or operation of a family dairy farm; and 

17 ‘‘(C) is the borrower of an outstanding 

18 qualified loan as a result of pursuing a degree 

19 described in subparagraph (A). 

20 ‘‘(7) QUALIFIED LOAN.—The term ‘qualified 

21 loan’ means— 

22 ‘‘(A)(i) a loan made, insured, or guaran23 teed under section 428 or 428H of the Higher 

24 Education Act of 1965 (20 U.S.C. 1078, 1078– 

25 8); 


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1 ‘‘(ii) a Federal Direct Stafford Loan or a 

2 Federal Direct Unsubsidized Stafford Loan 

3 made under section 455 of that Act (20 U.S.C. 

4 1087e); or 

5 ‘‘(iii) a consolidation loan under section 

6 428C of that Act (20 U.S.C. 1078–3), or a 

7 Federal Direct Consolidation Loan under sec8 tion 455 of that Act (20 U.S.C. 1087e), to the 

9 extent that the amount of the loan was used to 

10 repay a loan described in clause (i) or (ii); and 

11 ‘‘(B) a loan under part B or D of title IV 

12 of that Act (20 U.S.C. 1070 et seq.); or 

13 ‘‘(C) a loan under a guaranteed student 

14 loan program of the Department. 

15 ‘‘SEC. 1497. FEDERAL DAIRY EDUCATION LOAN FORGIVE16 NESS PROGRAM. 

17 ‘‘(a) IN GENERAL.—Subject to the availability of ap18 propriations, the Secretary shall carry out a Federal dairy 

19 education loan forgiveness program under which the Sec20 retary shall assume the obligation to repay an amount cal21 culated in accordance with subsection (c) for 1 or more 

22 qualified loans made to eligible qualified applicants in ac23 cordance with this section. 

24 ‘‘(b) ELIGIBILITY.—A qualified applicant shall sub25 mit to the Secretary an application and such documentaVerDate Aug 31 2005 22:08 Jun 04, 2007 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H2462.IH H2462

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1 tion of continued eligibility as the Secretary determines 

2 to be appropriate. 

3 ‘‘(c) MAXIMUM AMOUNT.—The maximum amount 

4 that the Secretary may repay under the program for each 

5 qualified applicant shall be equal to the average annual 

6 cost of tuition at land-grant colleges and universities (as 

7 determined by the Secretary annually), for each year that 

8 the qualified applicant— 

9 ‘‘(1) is an owner or operator of a family dairy 

10 farm; and 

11 ‘‘(2) has not otherwise received loan repayment 

12 on behalf of the qualified applicant under this sec13 tion or any other Federal or State program. 

14 ‘‘(d) PROHIBITION.—Nothing in this section author15 izes the refunding of any repayment of a qualified loan. 

16 ‘‘(e) EXCLUSION FROM INCOME.—Any payment to, 

17 or on behalf of, a qualified applicant under this subtitle 

18 shall not be included in the gross income of the qualified 

19 applicant for purposes of the Internal Revenue Code of 

20 1986. 

21 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— 

22 ‘‘(1) IN GENERAL.—There are authorized to be 

23 appropriated such sums as are necessary to carry 

24 out this subtitle. 


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1 ‘‘(2) INSUFFICIENT FUNDS.—If the total 

2 amount of funds appropriated to carry out this sub3 title is insufficient to provide loan repayment under 

4 the program for all eligible qualified applicants, the 

5 Secretary shall provide loan repayment to eligible 

6 qualified applicants on a pro rata basis.’’. 

7 SEC. 10. MANDATORY REPORTING OF DAIRY COMMOD8 ITIES. 

9 (a) DEFINITIONS.—Section 272 of the Agricultural 

10 Marketing Act of 1946 (7 U.S.C. 1637a) is amended to 

11 read as follows: 

12 ‘‘SEC. 272. DEFINITIONS. 

13 ‘‘In this subtitle: 

14 ‘‘(1) DAIRY COMMODITY.— 

15 ‘‘(A) IN GENERAL.—The term ‘dairy com16 modity’ means a product manufactured from 

17 milk or a milk-derived ingredient. 

18 ‘‘(B) INCLUSIONS.—The term ‘dairy com19 modity’ includes— 

20 ‘‘(i) fluid milk; 

21 ‘‘(ii) cheese; 

22 ‘‘(iii) butter; 

23 ‘‘(iv) nonfat dry milk; 

24 ‘‘(v) skim milk; 

25 ‘‘(vi) whey products; 


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1 ‘‘(vii) dry proteins (such as a milk 

2 protein concentrate, casein, and a casein3 ate); 

4 ‘‘(viii) a lactose product; and 

5 ‘‘(ix) a fresh dairy product (such as 

6 yogurt and ice cream). 

7 ‘‘(2) DAIRY PROCESSOR.—The term ‘dairy proc8 essor’ means a person or legal entity that commer9 cially processes milk into cheese, butter, nonfat dry 

10 milk, or other dairy solids. 

11 ‘‘(3) SECRETARY.—The term ‘Secretary’ means 

12 the Secretary of Agriculture.’’. 

13 (b) MANDATORY REPORTING.—Section 273 of the 

14 Agricultural Marketing Act of 1946 (7 U.S.C. 1637b) is 

15 amended— 

16 (1) by redesignating subsections (c) and (d) as 

17 subsections (d) and (e), respectively; and 

18 (2) by striking subsections (a) and (b) and in19 serting the following: 

20 ‘‘(a) DAILY REPORTING.— 

21 ‘‘(1) IN GENERAL.—The corporate officers or 

22 officially-designated representatives of each dairy 

23 processor shall report to the Secretary at least once 

24 each reporting day, not later than 10:00 a.m. CenVerDate Aug 31 2005 22:08 Jun 04, 2007 Jkt 059200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H2462.IH H2462

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1 tral Time, for each sales transaction involving a 

2 dairy commodity, information concerning— 

3 ‘‘(A) the sales price; 

4 ‘‘(B) the quantity sold; 

5 ‘‘(C) the location of the sales transaction; 

6 and 

7 ‘‘(D) product characteristics, including— 

8 ‘‘(i) moisture level; 

9 ‘‘(ii) packaging size; 

10 ‘‘(iii) grade; 

11 ‘‘(iv) if appropriate, fat or protein 

12 level; 

13 ‘‘(v) heat level for dried products; and 

14 ‘‘(vi) other defining product character15 istics. 

16 ‘‘(2) PUBLICATION.—The Secretary shall make 

17 the information reported under paragraph (1) avail18 able to the public not less frequently than once each 

19 reporting day, categorized by location and product 

20 characteristics. 

21 ‘‘(b) WEEKLY REPORTING.— 

22 ‘‘(1) IN GENERAL.—The corporate officers or 

23 officially-designated representatives of each dairy 

24 processor shall report to the Secretary, on the first 

25 reporting day of each week, not later than 9:00 a.m. 


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24 

•HR 2462 IH

1 Central Time, for the prior week information con2 cerning— 

3 ‘‘(A) the sales prices for sales transactions 

4 involving dairy commodities, categorized by 

5 product characteristics; and 

6 ‘‘(B) the quantities of dairy commodities 

7 sold. 

8 ‘‘(2) PUBLICATION.—The Secretary shall make 

9 the information reported under paragraph (1) avail10 able to the public on the first reporting day of each 

11 week, not later than 10:00 a.m. Central Time, cat12 egorized by location and product characteristics. 

13 ‘‘(3) FEDERAL ORDER PRICES.—The Secretary 

14 shall use weekly prices published under paragraph 

15 (2) to calculate Federal milk marketing order prices. 

16 ‘‘(c) MONTHLY REPORTING.— 

17 ‘‘(1) IN GENERAL.—The corporate officers or 

18 officially-designated representatives of each dairy 

19 processor shall report to the Secretary, on the first 

20 reporting day of each month, not later than 9:00 

21 a.m. Central Time, the quantity of all dairy com22 modities processed by the dairy processor during the 

23 prior month. 

24 ‘‘(2) PUBLICATION.—The Secretary shall make 

25 the information reported under paragraph (1) availVerDate Aug 31 2005 22:08 Jun 04, 2007 Jkt 059200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H2462.IH H2462

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25 

•HR 2462 IH

1 able to the public on the first reporting day of each 

2 month, not later than 10:00 a.m. Central Time, cat3 egorized by location and product characteristics.’’. 

Æ 


pwalker on PROD1PC71 with BILLS