II 

110TH CONGRESS 

1ST SESSION S. 1721 

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 SENATE OF THE UNITED STATES 

JUNE 27, 2007 

Mr. SPECTER (for himself and Mr. CASEY) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

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6 is repealed. 

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

8 Farm Security and Rural Investment Act of 2002 (7 

9 U.S.C. 7983) is repealed. 


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1 SEC. 2. MILK TARGET PRICE PROGRAM. 

2 Section 1502 of the Farm Security and Rural Invest3 ment Act of 2002 (7 U.S.C. 7982) is amended— 

4 (1) by striking the section heading and insert5 ing ‘‘MILK TARGET PRICE PROGRAM’’; 

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

7 and inserting the following: 

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

9 milk’ means milk (including milk components) classi10 fied as milk for manufacturing purposes under a 

11 Federal milk marketing order.’’; 

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

13 following: 

14 ‘‘(c) AMOUNT.— 

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

16 payments to a producer under this section shall be 

17 calculated by multiplying (as determined by the Sec18 retary)— 

19 ‘‘(A) the payment quantity for the pro20 ducer during the applicable month established 

21 under subsection (d); by 

22 ‘‘(B) the amount equal to— 

23 ‘‘(i) $12.00 per hundredweight (as ad24 justed under paragraph (2)); less 


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1 ‘‘(ii) the Class III milk price per hun2 dredweight under the applicable Federal 

3 milk marketing order. 

4 ‘‘(2) FEED PRICE INDEX AND ADJUSTMENT

5 FACTOR.— 

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

7 shall develop a feed price index, using a base8 line period of calendar years 2001 through 

9 2005, to reflect the feed cost of producing 100 

10 pounds of milk. 

11 ‘‘(B) FEED ADJUSTMENT FACTOR.—The 

12 Secretary shall establish a feed adjustment fac13 tor that reflects changes in the feed price index, 

14 as determined by the Secretary. 

15 ‘‘(C) ADJUSTMENT.—Each month that 

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

17 Secretary shall adjust the amount described in 

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

19 the feed adjustment factor. 

20 ‘‘(3) MAXIMUM AMOUNT.—The maximum an21 nual payment for all producers on a single dairy op22 eration during the months of the applicable fiscal 

23 year for which the producers receive payments under 

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


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

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

3 inserting ‘‘September 30, 2012’’. 

4 SEC. 3. DAIRY OPTIONS PROGRAM. 

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

6 Investment Act of 2002 (7 U.S.C. 7981 et seq.) is amend7 ed by adding at the end the following: 

8 ‘‘SEC. 1509. DAIRY OPTIONS PROGRAM. 

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

10 out a nationwide program under similar terms and condi11 tions as the Secretary used to carry out the dairy options 

12 pilot program established in accordance with section 191 

13 of the Federal Agricultural Improvement Reform Act of 

14 1996 (7 U.S.C. 7331). 

15 ‘‘(b) FUNDING.— 

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

17 Secretary shall use the funds, facilities, and authori18 ties of the Commodity Credit Corporation to carry 

19 out this section. 

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

21 Commodity Credit Corporation, the Secretary shall 

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

23 of fiscal years 2008 through 2012, to remain avail24 able until expended. 


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

2 extent practicable, the Secretary shall operate the 

3 program in a budget neutral manner.’’. 

4 SEC. 4. RECOURSE LOAN PROGRAM FOR COMMERCIAL 

5 PRODUCERS OF DAIRY PRODUCTS. 

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

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

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

9 the following: 

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

11 PRODUCERS OF DAIRY PRODUCTS. 

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

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

14 cheddar cheese, butter, and nonfat dry milk. 

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

16 30, 2007, the Secretary shall make recourse loans avail17 able to commercial processors of eligible dairy products— 

18 ‘‘(1) to assist the processors to manage inven19 tories of eligible dairy products; and 

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

21 for the dairy industry. 

22 ‘‘(c) AMOUNT OF LOAN.— 

23 ‘‘(1) IN GENERAL.—The Secretary shall estab24 lish a loan rate for eligible dairy products, that re25 flects a milk equivalent value of $9.90 per hundredVerDate Aug 31 2005 22:55 Jun 28, 2007 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1721.IS S1721

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1 weight of milk containing 3.67 percent butterfat, as 

2 determined by the Secretary. 

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

4 processor that receives a recourse loan under this 

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

6 rate of interest that the Secretary of the Treasury 

7 charges the Commodity Credit Corporation, as de8 termined by the Secretary. 

9 ‘‘(d) PERIOD OF LOAN.— 

10 ‘‘(1) IN GENERAL.—The original term of a re11 course loan made under this section may not extend 

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

13 is made. 

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

15 the Secretary may extend a recourse loan for an ad16 ditional period not to exceed the end of the next fis17 cal year.’’. 

18 SEC. 5. MILK REVENUE INSURANCE PILOT PROGRAM. 

19 Section 523 of the Federal Crop Insurance Act (7 

20 U.S.C. 1523) is amended by adding at the end the fol21 lowing: 

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

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

24 2008 through 2012, the Corporation shall carry out 

25 a pilot program under which producers on a dairy 


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1 farm may elect to receive insurance against loss of 

2 revenue due to natural disasters and price fluctua3 tions, as determined by the Corporation, based on 

4 the average revenue received by producers for each 

5 cow during the 5-year period ending the preceding 

6 crop year . 

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

8 carry out the pilot program under this section using 

9 similar terms and conditions as were contained in 

10 the crop insurance policy proposal entitled ‘Milk 

11 Revenue Policy (from bovine animals)’ submitted to 

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

13 section 508(h).’’. 

14 SEC. 6. FEDERAL MILK MARKETING ORDERS. 

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

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

17 30, 2008, the Secretary of Agriculture shall conduct 

18 a study of the economic benefits to milk producers 

19 of establishing a 2-class system for classifying milk 

20 under Federal milk marketing orders issued under 

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

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

23 Agricultural Marketing Agreement Act of 1937, con24 sisting of a fluid milk class and a manufacturing 

25 grade milk class (with the price for both classes deVerDate Aug 31 2005 22:55 Jun 28, 2007 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1721.IS S1721

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1 termined using the component prices of butterfat, 

2 protein, and other solids). 

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

4 determines (on the basis of the study conducted 

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

6 classifying milk under Federal milk marketing or7 ders would have a positive impact on milk producers, 

8 the Secretary shall amend Federal milk marketing 

9 orders to implement the 2-class system for 

10 classifying milk. 

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

12 8c(4) of the Agricultural Adjustment Act (7 U.S.C. 

13 608c(4)), reenacted with amendments by the Agricultural 

14 Marketing Agreement Act of 1937, is amended by striking 

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

16 (c) ADVANCED PRICING.—Section 8c(5) of the Agri17 cultural Adjustment Act (7 U.S.C. 608c(5)), reenacted 

18 with amendments by the Agricultural Marketing Agree19 ment Act of 1937, is amended by adding at the end the 

20 following: 

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

22 September 30, 2007, in calculating the ad23 vanced price of Class I butterfat milk and Class 

24 I and II skim milk under Federal milk mar25 keting orders, the Secretary shall use the 4- 


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1 week component prices that are used to cal2 culate prices for Class III and Class IV milk, 

3 as determined by the Secretary.’’. 

4 (d) ECONOMIC IMPACT ASSESSMENT.—The Sec5 retary of Agriculture shall— 

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

7 during the 1-year period ending on the date of en8 actment of this Act; and 

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

10 each time a proposed change in the Federal milk 

11 marketing order formulas is considered by the Sec12 retary— 

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

14 and 2-year period, of proposed changes in Fed15 eral milk marketing order formulas on— 

16 (i) milk supply; 

17 (ii) farm profitability; 

18 (iii) consumer demand; and 

19 (iv) market prices; 

20 (B) submit to the Committee on Agri21 culture of the House of Representatives and the 

22 Committee on Agriculture, Nutrition, and For23 estry a report that describes the results of the 

24 assessment; and 


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

2 results of the assessment before making a deci3 sion on any proposed change to the Federal 

4 milk marketing order formulas. 

5 SEC. 7. DAIRY FORWARD PRICING PROGRAM. 

6 Section 23 of the Agricultural Adjustment Act (7 

7 U.S.C. 627), reenacted with amendments by the Agricul8 tural Marketing Agreement Act of 1937, is amended— 

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

10 (2) in subsection (a)— 

11 (A) by striking ‘‘PILOT PROGRAM RE12 QUIRED.—’’ and all that follows through ‘‘pilot’’ 

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

14 Agriculture shall carry out a’’; 

15 (B) by striking ‘‘under which milk pro16 ducers’’ and inserting ‘‘under which— 

17 ‘‘(1) milk producers’’; and 

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

19 ‘‘handlers; and 

20 ‘‘(2) proprietary processors and cooperatives 

21 regulated under Federal milk marketing orders are 

22 authorized to voluntarily enter into forward price 

23 contracts with the members of the processors and 

24 cooperatives.’’; 

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


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

2 ‘‘(d) FUNDING.— 

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

4 Secretary shall use the funds, facilities, and authori5 ties of the Commodity Credit Corporation to carry 

6 out this section. 

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

8 use such funds of the Commodity Credit Corporation 

9 as are necessary to carry out this section for each 

10 of fiscal years 2008 through 2012, to remain avail11 able until expended.’’. 

12 SEC. 8. DAIRY PROCESSING EQUIPMENT LOAN GUARANTEE 

13 FUND. 

14 (a) LOANS.— 

15 (1) IN GENERAL.—Section 310B(a) of the Con16 solidated Farm and Rural Development Act (7 

17 U.S.C. 1932(a)) is amended— 

18 (A) by designating the first through fifth 

19 sentences as paragraphs (1) through (5), re20 spectively; 

21 (B) by striking ‘‘SEC. 310B. (a) The Sec22 retary’’ and inserting the following: 

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

24 ‘‘(a) LOANS.— 

25 ‘‘(1) IN GENERAL.—The Secretary’’; 


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

2 improving’’ and inserting ‘‘for the purposes 

3 of— 

4 ‘‘(A) improving’’; 

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

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

7 and control; 

8 ‘‘(B) the conservation’’; 

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

10 and inserting ‘‘rural areas; 

11 ‘‘(C) reducing’’; 

12 (F) by striking ‘‘rural areas, and (4) to fa13 cilitate economic’’ and inserting ‘‘rural areas; 

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

15 (G) by striking ‘‘foreign trade.’’ and insert16 ing ‘‘foreign trade; and 

17 ‘‘(E) providing processors of dairy prod18 ucts with incentives for investing in new equip19 ment and technologies by using not more than 

20 $15,000,000 each fiscal year to— 

21 ‘‘(i) make loans to dairy processors 

22 and cooperatives to cover not more than 50 

23 percent of the cost of acquisition and adop24 tion of new equipment, equipment up25 grades, and new technologies— 


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1 ‘‘(I) at a fixed rate of interest 

2 not to exceed the prime lending rate 

3 plus 1 percent; and 

4 ‘‘(II) with a term of not to ex5 ceed 15 years; and 

6 ‘‘(ii) guarantee loans made to dairy 

7 processors and cooperatives for the acquisi8 tion and adoption of new dairy equipment, 

9 equipment upgrades, and new technologies, 

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

11 (2) CONFORMING AMENDMENTS.— 

12 (A) Section 307(a)(6)(B)(ii) of the Con13 solidated Farm and Rural Development Act (7 

14 U.S.C. 1927(a)(6)(B)(ii)) is amended by strik15 ing ‘‘clause (1) of section 310B(a)’’ and insert16 ing ‘‘section 310B(a)(1)(A)’’. 

17 (B) Section 333A(g)(1)(B) of the Consoli18 dated Farm and Rural Development Act (7 

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

20 ‘‘310B(a)(1)’’ and inserting ‘‘310(a)(1)(A)’’. 

21 (C) Section 381E(d)(3)(B) of the Consoli22 dated Farm and Rural Development Act (7 

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

24 ‘‘310B(a)(1)’’ and inserting ‘‘310B(a)(1)(A)’’. 


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1 (b) LENDING POWER FOR DAIRY PROCESSING CO2 OPERATIVES.—Section 3.7 of the Farm Credit Act of 

3 1971 (12 U.S.C. 2128) is amended by adding at the end 

4 the following: 

5 ‘‘(g) DAIRY PROCESSING COOPERATIVES.— 

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

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

8 to provide dairy processing cooperatives with work9 ing capital lines of credit and accounts receivable fi10 nancing for the purpose of accessing export mar11 keting opportunities for milk and milk products. 

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

13 banks for cooperatives for a project under paragraph 

14 (1) may not exceed the lesser of— 

15 ‘‘(A) $1,000,000; or 

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

17 out the project. 

18 ‘‘(3) TERM.— 

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

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

21 described in paragraph (1) shall not exceed 24 

22 months. 

23 ‘‘(B) REVOLVING LINES OF CREDIT.—A 

24 revolving line of credit may be used for multiple 

25 transactions. 


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1 ‘‘(4) DUE DATE.—An accounts receivable fi2 nancing loan under this subsection shall be due on 

3 the earlier of— 

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

5 paid; or 

6 ‘‘(B) 180 days after the date of disburse7 ment. 

8 ‘‘(5) USE OF FINANCING.— 

9 ‘‘(A) WORKING CAPITAL LINE OF CREDIT

10 FINANCING.—Working capital line of credit fi11 nancing under this subsection may be used— 

12 ‘‘(i) to acquire inventory for the pro13 duction of milk; 

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

15 (such as design, engineering, labor, and 

16 overhead costs) used for— 

17 ‘‘(I) the manufacture or purchase 

18 of goods, including work-in-process, 

19 for the production of milk; or 

20 ‘‘(II) for the provision of services 

21 for the production of milk; or 

22 ‘‘(iii) to support standby letters of 

23 credit used as bid bonds, performance 

24 bonds, or payment guarantees. 


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1 ‘‘(B) ACCOUNTS RECEIVABLE FINANC2 ING.—Accounts receivable financing under this 

3 subsection may be used to finance export ac4 counts receivables for milk and milk products 

5 sold on payment terms of not more than 180 

6 days after the date of arrival at the port of im7 portation, if the finance export accounts receiv8 able have been insured by the Commodity Cred9 it Corporation or other guarantor approved by 

10 the Secretary.’’. 

11 SEC. 9. FEDERAL LOAN FORGIVENESS PROGRAM. 

12 The National Agricultural Research, Extension, and 

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

14 amended by adding at the end the following: 

15 ‘‘Subtitle P—Federal Dairy 

16 Education Loan Forgiveness 

17 ‘‘SEC. 1495. SHORT TITLE. 

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

19 Education Loan Forgiveness Act’. 

20 ‘‘SEC. 1496. DEFINITIONS. 

21 ‘‘In this subtitle: 

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

23 dairy farm’ means the real property of a dairy 

24 farm— 

25 ‘‘(A) owned by— 


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1 ‘‘(i) 1 or more immediate family mem2 bers; or 

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

4 and 

5 ‘‘(B) used for the production, for commer6 cial purposes, of milk or milk products. 

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

8 term ‘family dairy farm corporation’ means a cor9 poration— 

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

11 which are devoted to active involvement in 

12 farming; and 

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

14 stock of which is continuously owned by 1 or 

15 more immediate family members. 

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

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

18 stepchild, parent, stepparent, grandparent, brother, 

19 stepbrother, sister, stepsister, or similar relative-in20 law of an owner of real property, as determined by 

21 the Secretary. 

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

23 The term ‘institution of higher education’ has the 

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

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


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

2 the Federal dairy education loan forgiveness pro3 gram established under section 1497(a). 

4 ‘‘(6) QUALIFIED APPLICANT.—The term ‘quali5 fied applicant’ means a resident of the United States 

6 who, as determined by the Secretary— 

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

8 related to the production of agricultural prod9 ucts from an institution of higher education; 

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

11 commenced the first year of full-time ownership 

12 or operation of a family dairy farm; and 

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

14 qualified loan as a result of pursuing a degree 

15 described in subparagraph (A). 

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

17 loan’ means— 

18 ‘‘(A)(i) a loan made, insured, or guaran19 teed under section 428 or 428H of the Higher 

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

21 8); 

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

23 Federal Direct Unsubsidized Stafford Loan 

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

25 1087e); or 


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1 ‘‘(iii) a consolidation loan under section 

2 428C of that Act (20 U.S.C. 1078–3), or a 

3 Federal Direct Consolidation Loan under sec4 tion 455 of that Act (20 U.S.C. 1087e), to the 

5 extent that the amount of the loan was used to 

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

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

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

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

10 loan program of the Department. 

11 ‘‘SEC. 1497. FEDERAL DAIRY EDUCATION LOAN FORGIVE12 NESS PROGRAM. 

13 ‘‘(a) IN GENERAL.—Subject to the availability of ap14 propriations, the Secretary shall carry out a Federal dairy 

15 education loan forgiveness program under which the Sec16 retary shall assume the obligation to repay an amount cal17 culated in accordance with subsection (c) for 1 or more 

18 qualified loans made to eligible qualified applicants in ac19 cordance with this section. 

20 ‘‘(b) ELIGIBILITY.—A qualified applicant shall sub21 mit to the Secretary an application and such documenta22 tion of continued eligibility as the Secretary determines 

23 to be appropriate. 

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

25 that the Secretary may repay under the program for each 


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1 qualified applicant shall be equal to the average annual 

2 cost of tuition at land–grant colleges and universities (as 

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

4 the qualified applicant— 

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

6 farm; and 

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

8 on behalf of the qualified applicant under this sec9 tion or any other Federal or State program. 

10 ‘‘(d) PROHIBITION.—Nothing in this section author11 izes the refunding of any repayment of a qualified loan. 

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

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

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

15 applicant for purposes of the Internal Revenue Code of 

16 1986. 

17 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— 

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

19 appropriated such sums as are necessary to carry 

20 out this subtitle. 

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

22 amount of funds appropriated to carry out this sub23 title is insufficient to provide loan repayment under 

24 the program for all eligible qualified applicants, the 


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1 Secretary shall provide loan repayment to eligible 

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

3 SEC. 10. MANDATORY REPORTING OF DAIRY COMMOD4 ITIES. 

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

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

7 read as follows: 

8 ‘‘SEC. 272. DEFINITIONS. 

9 ‘‘In this subtitle: 

10 ‘‘(1) DAIRY COMMODITY.— 

11 ‘‘(A) IN GENERAL.—The term ‘dairy com12 modity’ means a product manufactured from 

13 milk or a milk-derived ingredient. 

14 ‘‘(B) INCLUSIONS.—The term ‘dairy com15 modity’ includes— 

16 ‘‘(i) fluid milk; 

17 ‘‘(ii) cheese; 

18 ‘‘(iii) butter; 

19 ‘‘(iv) nonfat dry milk; 

20 ‘‘(v) skim milk; 

21 ‘‘(vi) whey products; 

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

23 protein concentrate, casein, and a casein24 ate); 

25 ‘‘(viii) a lactose product; and 


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

2 yogurt and ice cream). 

3 ‘‘(2) DAIRY PROCESSOR.—The term ‘dairy proc4 essor’ means a person or legal entity that commer5 cially processes milk into cheese, butter, nonfat dry 

6 milk, or other dairy solids. 

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

8 the Secretary of Agriculture.’’. 

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

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

11 amended— 

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

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

14 (2) by striking subsections (a) and (b) and in15 serting the following: 

16 ‘‘(a) DAILY REPORTING.— 

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

18 officially–designated representatives of each dairy 

19 processor shall report to the Secretary at least once 

20 each reporting day, not later than 10:00 a.m. Cen21 tral Time, for each sales transaction involving a 

22 dairy commodity, information concerning— 

23 ‘‘(A) the sales price; 

24 ‘‘(B) the quantity sold; 


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

2 and 

3 ‘‘(D) product characteristics, including— 

4 ‘‘(i) moisture level; 

5 ‘‘(ii) packaging size; 

6 ‘‘(iii) grade; 

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

8 level; 

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

10 ‘‘(vi) other defining product character11 istics. 

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

13 the information reported under paragraph (1) avail14 able to the public not less frequently than once each 

15 reporting day, categorized by location and product 

16 characteristics. 

17 ‘‘(b) WEEKLY REPORTING.— 

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

19 officially–designated representatives of each dairy 

20 processor shall report to the Secretary, on the first 

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

22 Central Time, for the prior week information con23 cerning— 


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

2 involving dairy commodities, categorized by 

3 product characteristics; and 

4 ‘‘(B) the quantities of dairy commodities 

5 sold. 

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

7 the information reported under paragraph (1) avail8 able to the public on the first reporting day of the 

9 each week, not later than 10:00 a.m. Central Time, 

10 categorized by location and product characteristics. 

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

12 shall use weekly prices published under paragraph 

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

14 ‘‘(c) MONTHLY REPORTING.— 

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

16 officially-designated representatives of each dairy 

17 processor shall report to the Secretary, on the first 

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

19 a.m. Central Time, the quantity of all dairy com20 modities processed by the dairy processor during the 

21 prior month. 

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

23 the information reported under paragraph (1) avail24 able to the public on the first reporting day of the 


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25 

•S 1721 IS

1 each month, not later than 10:00 a.m. Central Time, 

2 categorized by location and product characteristics.’’. 

Æ 


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