I 

108TH CONGRESS 

1ST SESSION H. R. 455

To require the Secretary of Agriculture to use the Department of Agriculture’s preferred Option 1B as the price structure for Class I fluid 

milk under Federal milk marketing orders, to provide emergency market 

loss payments to dairy producers for any calendar year quarter 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, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 29, 2003

Mr. GREEN of Wisconsin (for himself and Mr. RYAN of Wisconsin) introduced 

the following bill; which was referred to the Committee on Agriculture 

A BILL

To require the Secretary of Agriculture to use the Department of Agriculture’s preferred Option 1B as the price 

structure for Class I fluid milk under Federal milk marketing orders, to provide emergency market loss payments to dairy producers for any calendar year quarter 

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, 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,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘National Dairy Policy 

3 Act of 2003’’. 

4 SEC. 2. USE OF DEPARTMENT OF AGRICULTURE’S PRE5 FERRED OPTION 1B AS PRICE STRUCTURE 

6 FOR CLASS I MILK UNDER FEDERAL MILK 

7 MARKETING ORDERS. 

8 Section 1 of H.R. 3428 of the 106th Congress, as 

9 enacted into law by section 1000(a)(8) of Public Law 106–

10 113 (Appendix H; 113 Stat. 1501A–517; 7 U.S.C. 7253 

11 note), is amended—

12 (1) in subsection (b), by striking ‘‘this Act’’ and 

13 inserting ‘‘the National Dairy Policy Act of 2003’’; 

14 and 

15 (2) by striking subsection (c) and inserting the 

16 following new subsection (c): 

17 ‘‘(c) USE OF OPTION 1B FOR PRICING CLASS I 

18 MILK.—As specified in the final rule, the Secretary of Ag19 riculture shall price fluid or Class I milk under the Federal 

20 milk marketing orders using the Class I price differentials 

21 known as Option 1B.’’. 

22 SEC. 3. EMERGENCY MARKET LOSS PAYMENTS TO DAIRY 

23 PRODUCERS. 

24 (a) DEFINITIONS.—In this section: 

25 (1) FEDERAL MILK MARKETING ORDER.—The 

26 term ‘‘Federal milk marketing order’’ means a milk 
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1 marketing order issued under section 8c of the Agri2 cultural Adjustment Act (7 U.S.C. 608c), reenacted 

3 with amendments by the Agricultural Marketing 

4 Agreement Act of 1937. 

5 (2) CLASS III MILK.—The term ‘‘Class III 

6 milk’’ means milk classified as Class III milk (milk 

7 used to produce cheese) under a Federal milk mar8 keting order. 

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

10 the Secretary of Agriculture, acting through the 

11 Farm Service Agency. 

12 (b) PAYMENTS REQUIRED.—Using the funds, facili13 ties, and authorities of the Commodity Credit Corporation, 

14 the Secretary shall make an emergency market loss pay15 ment under this section to dairy producers on a farm in 

16 the 48 contiguous States, including producers on farms 

17 not covered by a Federal milk marketing order, whenever 

18 the national average price for Class III milk under Federal 

19 milk marketing orders for a calendar year quarter is less 

20 than a target price of $11.50 per hundredweight for milk 

21 containing 3.5 percent butterfat. 

22 (c) PAYMENT AMOUNTS.—

23 (1) BASIS FOR PAYMENT.—Subject to para24 graph (2), payments under subsection (b) to dairy 

25 producers on a farm for a calendar year quarter 
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1 shall be based on the total quantity of milk mar2 keted by the producers during that quarter and de3 signed to ensure that the producers receive not less 

4 than the target price for that milk. 

5 (2) PAYMENT AND VOLUME LIMITATIONS.—The 

6 Secretary may impose maximum payments per farm 

7 or volume limitations on the quantity of the pro8 ducers’ quarterly production on which payments will 

9 be made under this section. 

10 (d) TIME FOR PAYMENTS.—Payments required 

11 under this section for a month shall be made not later 

12 than the 21st day after the end of a calendar year quarter 

13 for which payments are required. 

14 (e) FARM RECONSTITUTION.—The Secretary shall 

15 carry out this section in such a manner that there are 

16 no additional outlays under this section as a result of the 

17 reconstitution of a farm that the Secretary determines oc18 curred in whole or in part for the purpose of increasing 

19 the amounts received as payments under this section.

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