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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5052 Introduced in House (IH)]

106th CONGRESS
  2d Session
                                H. R. 5052

To ensure that milk producers in the United States receive a fair price 
    for milk marketed for domestic consumption based on the cost of 
 production and other appropriate marketing factors and to establish a 
     National Milk Pricing Board consisting of industry and farmer 
 representatives to assist the Secretary of Agriculture in determining 
                   production costs and milk prices.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2000

Mr. Klink (for himself, Mr. Holden, Mr. LaTourette, Mr. Kanjorski, Mr. 
   Doyle, Mr. Hinchey, Mr. Baldacci, and Mr. Murtha) introduced the 
   following bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL

 
To ensure that milk producers in the United States receive a fair price 
    for milk marketed for domestic consumption based on the cost of 
 production and other appropriate marketing factors and to establish a 
     National Milk Pricing Board consisting of industry and farmer 
 representatives to assist the Secretary of Agriculture in determining 
                   production costs and milk prices.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fairness for Dairy Farmers Act of 
2000''.

SEC. 2. BASE PRICE FOR MILK TO REFLECT COST OF PRODUCTION.

    (a) Cost Basis for Base Price.--Notwithstanding any other provision 
of law, the Secretary of Agriculture shall require milk handlers that 
are subject to a Federal or State milk marketing order or that are 
otherwise engaged in the business of receiving fluid milk for 
processing and distribution to retail or wholesale outlets to pay milk 
producers a base price for milk marketed for domestic consumption that 
reflects the producers' costs of production as well as other 
appropriate marketing factors.
    (b) Determination of Cost of Production.--(1) Not less than 
quarterly, the Secretary shall determine the cost of milk production 
in--
            (A) every Federal milk marketing order area;
            (B) every State milk marketing order area outside of the 
        Federal milk marketing order system; and
            (C) every other area in the United States in which milk is 
        produced, but that is not included in a Federal or State milk 
        marketing order.
    (2) In determining the cost of milk production under paragraph (1) 
in an area, the Secretary shall take into consideration the latest cash 
cost of milk production, as estimated by the Secretary, in that area.

SEC. 3. ESTIMATION OF ANNUAL MILK PRODUCTION AND DOMESTIC CONSUMPTION 
              LEVELS.

    (a) Annual Estimate.--On an annual basis, the Secretary of 
Agriculture shall estimate--
            (1) the quantity of milk to be produced in the United 
        States and marketed for commercial use milk during the next 12 
        months; and
            (2) the quantity of milk necessary to satisfy domestic 
        consumption, including Government nutrition assistance 
        programs, during the next 12 months.
    (b) Rules for Estimate.--When making an estimate under this 
section, the Secretary shall--
            (1) consider any existing inventory management programs to 
        balance domestic supply and demand; and
            (2) consider import projections of all dairy products.

SEC. 4. NATIONAL MILK PRICING BOARD.

    (a) Appointment of Board.--The Secretary of Agriculture shall 
appoint a National Milk Pricing Board to carry out the duties specified 
in subsection (c).
    (b) Membership.--The Board shall consist of the following:
            (1) At least one milk producer from each Federal milk 
        marketing order area and from each State with separate State 
        milk marketing order areas.
            (2) A lesser number of persons appointed by the Secretary 
        from among individuals who have a demonstrable expertise in the 
        dairy industry, including at least one consumer advocate.
    (c) Duties of the Board.--The Board shall assist the Secretary--
            (1) in establishing the base price (either regionally or 
        nationally) for milk under section 2;
            (2) in determining cost of production for an area under 
        section 2;
            (3) in determining the quantity of milk needed for domestic 
        consumption, as required by section 3; and
            (4) in carrying out the supply management authority 
        provided in section 5.

SEC. 5. SUPPLY MANAGEMENT AUTHORITY.

    (a) Limits on Availability of Base Price.--A milk producer shall be 
eligible to receive the base price established under section 2 only on 
the greater of--
            (1) the percentage of the producer's previous year's 
        production corresponding to that producer's share of the 
        quantity of milk estimated under section 3(a)(2) as necessary 
        to satisfy domestic consumption, as determined by the Board; or
            (2) 216,666 pounds of milk per month.
    (b) Treatment of Milk Produced in Excess of Domestic Needs.--The 
Board shall oversee the purchase of excess milk by the Commodity Credit 
Corporation at the world market price. The excess milk shall be made 
available for use in domestic and international nutrition assistance 
programs.

SEC. 6. REPORT REQUIREMENTS.

    (a) Dairy Product Stocks.--The Secretary of Agriculture shall 
prepare a national monthly report of Government and commercial stocks 
of dairy products.
    (b) Domestic Production and Imports.--The Secretary of Agriculture 
shall prepare an annual report of United States milk production and 
milk product imports. In the case of milk product imports, the 
Secretary shall identify the county of origin for the imports and 
evaluate the impact diary imports (particularly imports of 
ultrafiltered milk) have on United States milk producers.
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