(B) a referendum conducted by the Sec-
retary of Agriculture pursuant to subsections
(17) or (19) of such section 8c;
(C) the Statement of Policy of the Sec-
retary of Agriculture effective July 24, 1971
(36 Fed. Reg. 13804), relating to notices of
proposed rulemaking and public participation in
rulemaking; and
(D) chapter 35 of title 44, United States
Code (commonly known as the ‘‘Paperwork Re-
duction Act’’).
(3) EFFECT ON MINIMUM MILK PRICES.—If the
Secretary of Agriculture announces minimum prices
for milk under Federal milk marketing orders pursu-
ant to section 1000.50 of title 7, Code of Federal
Regulations, before the date on which the Secretary
first implements the modified formula, the minimum
prices so announced before that date shall be the
only applicable minimum prices under Federal milk
marketing orders for the months for which the
prices have been announced.
SEC. 3. ONE-YEAR EXTENSION OF CURRENT MILK PRICE
SUPPORT PROGRAM.
(a) EXTENSION OF PROGRAM.—Subsection (h) of
section 141 of the Agricultural Market Transition Act (7
U.S.C. 7251) is amended by striking ‘‘1999’’ both places
it appears and inserting ‘‘2000’’.
(b) CONTINUATION OF CURRENT PRICE SUPPORT
RATE.—Subsection (b)(4) of such section is amended by
striking ‘‘year 1999’’ and inserting ‘‘years 1999 and
2000’’.
(c) ELIMINATION OF RECOURSE LOAN PROGRAM FOR
PROCESSORS.—Section 142 of the Agricultural Market
Transition Act (7 U.S.C. 7252) is repealed.
SEC. 4. DAIRY FORWARD PRICING PROGRAM.
The Agricultural Adjustment Act (7 U.S.C. 601 et
seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, is amended by adding
at the end the following new section:
‘‘SEC. 23. DAIRY FORWARD PRICING PILOT PROGRAM.
‘‘(a) PILOT PROGRAM REQUIRED.—Not later than 90
days after the date of the enactment of this section, the
Secretary of Agriculture shall establish a temporary pilot
program under which milk producers and cooperatives are
authorized to voluntarily enter into forward price con-
tracts with milk handlers.
‘‘(b) MINIMUM MILK PRICE REQUIREMENTS.—Pay-
ments made by milk handlers to milk producers and co-
operatives, and prices received by milk producers and co-
operatives, under the forward contracts shall be deemed
to satisfy—
‘‘(1) all regulated minimum milk price require-
ments of paragraphs (B) and (F) of subsection (5)
of section 8c; and
‘‘(2) the requirement of paragraph (C) of such
subsection regarding total payments by each han-
dler.
‘‘(c) MILK COVERED BY PILOT PROGRAM.—The pilot
program shall apply only with respect to the marketing
of federally regulated milk that—
‘‘(1) is not classified as Class I milk or other-
wise intended for fluid use; and
‘‘(2) is in the current of interstate or foreign
commerce or directly burdens, obstructs, or affects
interstate or foreign commerce in federally regulated
milk.
‘‘(d) DURATION.—The authority of the Secretary of
Agriculture to carry out the pilot program shall terminate
on December 31, 2004. No forward price contract entered
into under the program may extend beyond that date.
‘‘(e) STUDY AND REPORT ON EFFECT OF PILOT
PROGRAM.—
‘‘(1) STUDY.—The Secretary of Agriculture
shall conduct a study on forward contracting be-
tween milk producers and cooperatives and milk
handlers to determine the impact on milk prices paid
to producers in the United States. To obtain infor-
mation for the study, the Secretary may use the au-
thorities available to the Secretary under section 8d,
subject to the confidentiality requirements of sub-
section (2) of such section.
‘‘(2) REPORT.—Not later than April 30, 2002,
the Secretary shall submit to the Committee on Ag-
riculture, Nutrition and Forestry of the Senate and
the Committee on Agriculture of the House of Rep-
resentatives a report containing the results of the
study.’’.
Passed the House of Representatives September 22,
1999.
Attest:
Clerk.