II 

112TH CONGRESS 

1ST SESSION S. 1714 

To extend the milk income loss contract program, to require the Secretary 

of Agriculture to conduct hearings to assess the implications of 

transitioning Federal milk marketing orders from end-product pricing 

to a competitive pay pricing system, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 17, 2011 

Mrs. GILLIBRAND introduced the following bill; which was read twice and 

referred to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To extend the milk income loss contract program, to require 

the Secretary of Agriculture to conduct hearings to assess the implications of transitioning Federal milk marketing orders from end-product pricing to a competitive 

pay pricing system, 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Dairy Producer Income 

5 Protection Act of 2011’’. 


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1 SEC. 2. MILK INCOME LOSS CONTRACT PROGRAM. 

2 (a) IN GENERAL.—Section 1506 of the Food, Con3 servation, and Energy Act of 2008 (7 U.S.C. 8773) is 

4 amended— 

5 (1) in subsection (c)(3)— 

6 (A) in subparagraph (A), by inserting 

7 ‘‘and’’ after the semicolon at the end; 

8 (B) in subparagraph (B)— 

9 (i) by striking ‘‘ending August 31, 

10 2012’’ and inserting ‘‘thereafter’’; and 

11 (ii) by striking ‘‘; and’’ and inserting 

12 a period; and 

13 (C) by striking subparagraph (C); 

14 (2) in subsection (d)— 

15 (A) in the subsection heading, by striking 

16 ‘‘FOR FEED PRICES’’; and 

17 (B) by adding at the end the following: 

18 ‘‘(4) PAYMENT RATE ADJUSTMENTS.— 

19 ‘‘(A) IN GENERAL.—Subject to paragraphs 

20 (1) through (3), for each of fiscal years 2012 

21 through 2015, the amount specified in sub22 section (c)(2)(A) used to determine the pay23 ment rate for the fiscal year shall be the pay24 ment rate for the preceding fiscal year, as ad25 justed to reflect changes for the 12-month pe26 riod ending the preceding November 30 in the 


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1 Consumer Price Index for All Urban Con2 sumers published by the Bureau of Labor Sta3 tistics of the Department of Labor. 

4 ‘‘(B) TERMINATION OF AUTHORITY.—Ef5 fective beginning in fiscal year 2016, the au6 thority for the adjustment described in subpara7 graph (A) shall terminate.’’; 

8 (3) in subsection (e)(2)(A)— 

9 (A) in clause (i), by inserting ‘‘and’’ after 

10 the semicolon at the end; 

11 (B) in clause (ii)— 

12 (i) by striking ‘‘for the period’’ and all 

13 that follows through ‘‘2012’’ and inserting 

14 ‘‘effective beginning October 1, 2008’’; and 

15 (ii) by striking ‘‘; and’’ and inserting 

16 a period; and 

17 (C) by striking clause (iii); and 

18 (4) in subsections (g) and (h)(1), by striking 

19 ‘‘September 30, 2012’’ each place it appears and in20 serting ‘‘September 30, 2017’’. 

21 (b) OFFSETS.— 

22 (1) REPEAL OF PERMANENT PRICE SUPPORT

23 AUTHORITY FOR MILK.— 


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1 (A) IN GENERAL.—Section 201 of the Ag2 ricultural Act of 1949 (7 U.S.C. 1446) is 

3 amended— 

4 (i) in subsection (a), by striking 

5 ‘‘milk,’’; and 

6 (ii) by striking subsections (c) and 

7 (d). 

8 (B) CONFORMING AMENDMENT.—Section 

9 301 of the Agricultural Act of 1949 (7 U.S.C. 

10 1447) is amended by inserting ‘‘(other than 

11 milk)’’ after ‘‘agricultural commodity’’. 

12 (2) REPEAL OF DAIRY PRODUCT PRICE SUP13 PORT PROGRAM.—Section 1501 of the Food, Con14 servation, and Energy Act of 2008 (7 U.S.C. 8771) 

15 is repealed. 

16 (3) REPEAL OF DAIRY EXPORT INCENTIVE PRO17 GRAM.— 

18 (A) IN GENERAL.—Section 153 of the 

19 Food Security Act of 1985 (15 U.S.C. 713a– 

20 14) is repealed. 

21 (B) CONFORMING AMENDMENTS.—Section 

22 902(2) of the Trade Sanctions Reform and Ex23 port Enhancement Act of 2000 (22 U.S.C. 

24 7201(2)) is amended— 

25 (i) by striking subparagraph (D); and 


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1 (ii) by redesignating subparagraphs 

2 (E) and (F) as subparagraphs (D) and 

3 (E), respectively. 

4 SEC. 3. FEDERAL MILK MARKETING REFORM. 

5 (a) IN GENERAL.—Not later than 180 days after the 

6 date of enactment of this Act, the Secretary of Agriculture 

7 shall conduct hearings to assess the implications of 

8 transitioning Federal milk marketing orders from end9 product pricing to a competitive pay pricing system. 

10 (b) REQUIREMENTS.—In conducting hearings under 

11 this section, the Secretary shall— 

12 (1) ensure that market administrators conduct 

13 a thorough analysis of the reforms to the Federal 

14 milk marketing orders proposed by the Maine Dairy 

15 Industry Advisory Council and the reforms included 

16 in title II of the Dairy Security Act of 2011; 

17 (2) analyze the implications of transitioning 

18 from a 4-class system for milk products to a 2-class 

19 system; 

20 (3) explore methods to improve signals for price 

21 discovery in the short- and long-term to allow dairy 

22 producers to better use risk management tools; 

23 (4) assess whether a 2-class competitive pay 

24 pricing system for milk products would be more or 


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1 less transparent than the system in effect as of the 

2 day before the date of enactment of this Act; and 

3 (5) analyze the impact of eliminating a min4 imum regulated price on price volatility in dairy 

5 markets. 

6 SEC. 4. BUDGETARY EFFECTS. 

7 The budgetary effects of this Act, for the purpose of 

8 complying with the Statutory Pay-As-You-Go Act of 2010, 

9 shall be determined by reference to the latest statement 

10 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

11 Act, submitted for printing in the Congressional Record 

12 by the Chairman of the Senate Budget Committee, pro13 vided that such statement has been submitted prior to the 

14 vote on passage. 

Æ 


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