vanced price of Class I butterfat milk and Class 
I and II skim milk under Federal milk mar-
keting orders, the Secretary shall use the 4- 
week component prices that are used to cal-
culate prices for Class III and Class IV milk, 
as determined by the Secretary.’’. 
(d) ECONOMIC
IMPACT
ASSESSMENT.—The Sec-
retary of Agriculture shall— 
(1) carry out a review of the milk-feed ratio 
during the 1-year period ending on the date of en-
actment of this Act; and 
(2) not later than September 30, 2008, and 
each time a proposed change in the Federal milk 
marketing order formulas is considered by the Sec-
retary— 
(A) assess the economic impact, over a 1- 
and 2-year period, of proposed changes in Fed-
eral milk marketing order formulas on— 
(i) milk supply; 
(ii) farm profitability; 
(iii) consumer demand; and 
(iv) market prices; 
(B) submit to the Committee on Agri-
culture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and For-
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estry a report that describes the results of the 
assessment; and 
(C) consider, and include in the record, the 
results of the assessment before making a deci-
sion on any proposed change to the Federal 
milk marketing order formulas. 
SEC. 7. DAIRY FORWARD PRICING PROGRAM. 
Section 23 of the Agricultural Adjustment Act (7 
U.S.C. 627), reenacted with amendments by the Agricul-
tural Marketing Agreement Act of 1937, is amended— 
(1) in the section heading by striking ‘‘PILOT’’; 
(2) in subsection (a)— 
(A) by striking ‘‘PILOT PROGRAM RE-
QUIRED.—’’ and all that follows through ‘‘pilot’’ 
and inserting ‘‘IN GENERAL.—The Secretary of 
Agriculture shall carry out a’’; 
(B) by striking ‘‘under which milk pro-
ducers’’ and inserting ‘‘under which— 
‘‘(1) milk producers’’.; and 
(C) by striking ‘‘handlers.’’ and inserting 
‘‘handlers; and 
‘‘(2) proprietary processors and cooperatives 
regulated under Federal milk marketing orders are 
authorized to voluntarily enter into forward price 
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contracts with the members of the processors and 
cooperatives.’’; 
(3) by striking subsections (d) and (e); and 
(4) by adding at the end the following: 
‘‘(d) FUNDING.— 
‘‘(1) COMMODITY CREDIT CORPORATION.—The 
Secretary shall use the funds, facilities, and authori-
ties of the Commodity Credit Corporation to carry 
out this section. 
‘‘(2) FUNDING AMOUNT.—The Secretary shall 
use such funds of the Commodity Credit Corporation 
as are necessary to carry out this section for each 
of fiscal years 2008 through 2012, to remain avail-
able until expended.’’. 
SEC. 8. DAIRY PROCESSING EQUIPMENT LOAN GUARANTEE 
FUND. 
(a) LOANS.— 
(1) IN GENERAL.—Section 310B(a) of the Con-
solidated Farm and Rural Development Act (7 
U.S.C. 1932(a)) is amended— 
(A) by designating the first through fifth 
sentences as paragraphs (1) through (5), re-
spectively; 
(B) by striking ‘‘SEC. 310B. (a) The Sec-
retary’’ and inserting the following: 
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‘‘SEC. 310B. RURAL INDUSTRIALIZATION ASSISTANCE. 
‘‘(a) LOANS.— 
‘‘(1) IN GENERAL.—The Secretary’’; 
(C) by striking ‘‘for the purposes of (1) 
improving’’ and inserting ‘‘for the purposes 
of— 
‘‘(A) improving’’; 
(D) by striking ‘‘abatement and control, 
(2) the conservation’’ and inserting ‘‘abatement 
and control; 
‘‘(B) the conservation’’; 
(E) by striking ‘‘rural areas, (3) reducing’’ 
and inserting ‘‘rural areas; 
‘‘(C) reducing’’; 
(F) by striking ‘‘rural areas, and (4) to fa-
cilitate economic’’ and inserting ‘‘rural areas; 
‘‘(D) facilitating economic’’; and 
(G) by striking ‘‘foreign trade.’’ and insert-
ing ‘‘foreign trade; and 
‘‘(E) providing processors of dairy prod-
ucts with incentives for investing in new equip-
ment and technologies by using not more than 
$15,000,000 each fiscal year to— 
‘‘(i) make loans to dairy processors 
and cooperatives to cover not more than 50 
percent of the cost of acquisition and adop-
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tion of new equipment, equipment up-
grades, and new technologies— 
‘‘(I) at a fixed rate of interest 
not to exceed the prime lending rate 
plus 1 percent; and 
‘‘(II) with a term of not to ex-
ceed 15 years; and 
‘‘(ii) guarantee loans made to dairy 
processors and cooperatives for the acquisi-
tion and adoption of new dairy equipment, 
equipment upgrades, and new technologies, 
at a guarantee rate of 90 percent.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 307(a)(6)(B)(ii) of the Con-
solidated Farm and Rural Development Act (7 
U.S.C. 1927(a)(6)(B)(ii)) is amended by strik-
ing ‘‘clause (1) of section 310B(a)’’ and insert-
ing ‘‘section 310B(a)(1)(A)’’. 
(B) Section 333A(g)(1)(B) of the Consoli-
dated Farm and Rural Development Act (7 
U.S.C. 1983a(g)(1)(B)) is amended by striking 
‘‘310B(a)(1)’’ and inserting ‘‘310(a)(1)(A)’’. 
(C) Section 381E(d)(3)(B) of the Consoli-
dated Farm and Rural Development Act (7 
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