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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5649 Introduced in House (IH)]

106th CONGRESS
  2d Session
                                H. R. 5649

 To require the Secretary of Agriculture to make emergency market loss 
payments to dairy producers for any month in which the national average 
 price for Class III milk under Federal milk marketing orders is less 
            than a target price of $11.50 per hundredweight.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            December 8, 2000

   Mr. Obey (for himself, Mr. Kind, and Ms. Baldwin) introduced the 
   following bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL

 
 To require the Secretary of Agriculture to make emergency market loss 
payments to dairy producers for any month in which the national average 
 price for Class III milk under Federal milk marketing orders is less 
            than a target price of $11.50 per hundredweight.

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

SECTION 1. EMERGENCY MARKET LOSS PAYMENTS TO DAIRY PRODUCERS IN 
              RESPONSE TO LOW CLASS III MILK PRICES.

    (a) Definitions.--In this section:
            (1) Federal milk marketing order.--The term ``Federal milk 
        marketing order'' means a milk marketing order issued under 
        section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), 
        reenacted with amendments by the Agricultural Marketing 
        Agreement Act of 1937.
            (2) Class III milk.--The term ``Class III milk'' means milk 
        classified as Class III milk under a Federal milk marketing 
        order.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture, acting through the Farm Service Agency.
    (b) Payments Required.--Using the funds, facilities, and 
authorities of the Commodity Credit Corporation, the Secretary shall 
make an emergency market loss payment under this section to dairy 
producers on a farm in the 48 contiguous States whenever the national 
average price for Class III milk under Federal milk marketing orders 
for a month is less than a target price of $11.50 per hundredweight for 
milk containing 3.5 percent butterfat.
    (c) Payment Amounts.--
            (1) Basis for payment.--The amount of the payment made 
        under subsection (b) to dairy producers on a farm covered by a 
        Federal milk marketing order region for a month shall be based 
        on the Class III milk utilization rates within the order. In 
        the case of payments to dairy producers on a farm outside of 
        the Federal milk marketing order system, the Secretary shall 
        determine the utilization rate for milk used for cheese 
        production for the State in which the farm is located. Payments 
        shall make up the difference between the average Class III 
        price for the month and the target price specified in 
        subsection (b).
            (2) Payment limitation.--Notwithstanding paragraph (1), 
        producers on a farm may not receive payments under this section 
        for more than 216,666 pounds of milk produced on that farm 
        during a month.
    (d) Time for Payments.--Payments required under this section for a 
month shall be made not later than the 21st day after the end of the 
month.
    (e) Farm Reconstitution.--The Secretary shall carry out this 
section in such a manner that there are no additional outlays under 
this section as a result of the reconstitution of a farm that the 
Secretary determines occurred in whole or in part for the purpose of 
increasing the amounts received as payments under this section.
                                 <all>
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