I

104TH CONGRESS

1ST SESSION H. R. 1808

To amend the Agricultural Adjustment Act to repeal the minimum adjustments to prices of fluid milk under Federal marketing orders and to

establish basing points in various geographical areas of the United States

for purposes of determining prices to be paid to milk producers under

such orders.

IN THE HOUSE OF REPRESENTATIVES

JUNE 8, 1995

Mr. ROTH introduced the following bill; which was referred to the Committee

on Agriculture

A BILL

To amend the Agricultural Adjustment Act to repeal the

minimum adjustments to prices of fluid milk under Federal marketing orders and to establish basing points in

various geographical areas of the United States for purposes of determining prices to be paid to milk producers

under such orders.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Milk Marketing Order

5 Reform Act of 1995’’.
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1 SEC. 2. REPEAL OF EXISTING MINIMUM ADJUSTMENTS TO

2 PRICES OF FLUID MILK.

3 (a) REPEAL.—Paragraph (A) of section 8c(5) of the

4 Agricultural Adjustment Act (7 U.S.C. 608c(5)), reen5 acted with amendments by the Agricultural Marketing

6 Agreement Act of 1937, is amended by striking the third

7 and fourth sentences, including the table.

8 (b) TECHNICAL AMENDMENTS.—The first sentence

9 of such paragraph is amended—

10 (1) by striking ‘‘Classifying’’ and inserting

11 ‘‘The order shall classify’’;

12 (2) by striking ‘‘fixing’’ the first place it ap13 pears and inserting ‘‘fix’’; and

14 (3) by striking ‘‘providing’’ and inserting ‘‘pro15 vide’’.

16 SEC. 3. ESTABLISHMENT OF REGIONAL MILK PRICING SYS17 TEM.

18 (a) ESTABLISHMENT.—Subsection (5) of section 8c

19 of the Agricultural Adjustment Act (7 U.S.C. 608c), reen20 acted with amendments by the Agricultural Marketing

21 Agreement Act of 1937, is amended by striking paragraph

22 (H), which is no longer effective pursuant to section 103

23 of the Food and Agriculture Act of 1965 (Public Law 89–

24 321; 79 Stat. 1188), and inserting the following new para25 graph:
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1 ‘‘(H)(i) The Secretary shall designate by rule not less

2 than 4, and not more than 8, regions in the United States

3 which together include all geographical areas in the United

4 States that are subject to milk marketing orders. The en5 tire geographical area that is subject to a single milk mar6 keting order shall be included in a single region designated

7 under this paragraph.

8 ‘‘(ii) Each region designated under this paragraph

9 shall consist of a geographical area in which less than 60

10 percent of the aggregate amount of milk of the highest

11 use classification produced is consumed for fluid use.

12 ‘‘(iii) The Secretary shall designate a single site in

13 a milk surplus area in each such region and shall use such

14 site for purposes of determining the prices to be paid to

15 producers for milk produced in such region, including

16 price adjustments under paragraphs (A) and (B) for vol17 ume, market, and production differentials customarily ap18 plied by the handlers subject to the order involved and

19 for the grade or quality of the milk purchased.

20 ‘‘(iv) The aggregate amount of the adjustments made

21 in accordance with subparagraph (iii) under paragraphs

22 (A) and (B) shall be not less than $1.12 per hundred23 weight of milk having 3.5 percent milkfat.’’.

24 (b) CONFORMING AMENDMENTS.—Such subsection is

25 further amended—
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1 (1) in the second sentence of paragraph (A), by

2 striking ‘‘for (1)’’ and all that follows through ‘‘(3)’’

3 and inserting ‘‘made in accordance with paragraph

4 (H)(iii) and adjustments for’’; and

5 (2) in paragraph (B)—

6 (A) by striking ‘‘Providing:’’ and inserting

7 ‘‘The order shall contain a provision provid8 ing—’’;

9 (B) by striking ‘‘for (a)’’ and all that fol10 lows through ‘‘(c)’’ and inserting ‘‘made in ac11 cordance with paragraph (H)(iii), adjustments

12 for’’; and

13 (C) by striking ‘‘(d)’’, ‘‘(e)’’, and ‘‘(f)’’.

14 SEC. 4. EFFECTIVE DATE.

15 The amendments made by this Act shall take effect

16 one year after the date of the enactment of this Act.

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