I 
108TH CONGRESS 
1ST SESSION 
H. R. 455
To require the Secretary of Agriculture to use the Department of Agri-
culture’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 mar-
keting 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 Depart-
ment of Agriculture’s preferred Option 1B as the price 
structure for Class I fluid milk under Federal milk mar-
keting orders, to provide emergency market loss pay-
ments 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 tar-
get price of $11.50 per hundredweight, and for other 
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Dairy Policy 
Act of 2003’’. 
SEC. 2. USE OF DEPARTMENT OF AGRICULTURE’S PRE-
FERRED OPTION 1B AS PRICE STRUCTURE 
FOR CLASS I MILK UNDER FEDERAL MILK 
MARKETING ORDERS. 
Section 1 of H.R. 3428 of the 106th Congress, as 
enacted into law by section 1000(a)(8) of Public Law 106–
113 (Appendix H; 113 Stat. 1501A–517; 7 U.S.C. 7253 
note), is amended—
(1) in subsection (b), by striking ‘‘this Act’’ and 
inserting ‘‘the National Dairy Policy Act of 2003’’; 
and 
(2) by striking subsection (c) and inserting the 
following new subsection (c): 
‘‘(c) USE OF OPTION 1B FOR PRICING CLASS I 
MILK.—As specified in the final rule, the Secretary of Ag-
riculture shall price fluid or Class I milk under the Federal 
milk marketing orders using the Class I price differentials 
known as Option 1B.’’. 
SEC. 3. EMERGENCY MARKET LOSS PAYMENTS TO DAIRY 
PRODUCERS. 
(a) DEFINITIONS.—In this section: 
(1) FEDERAL MILK MARKETING ORDER.—The 
term ‘‘Federal milk marketing order’’ means a milk
marketing order issued under section 8c of the Agri-
cultural Adjustment Act (7 U.S.C. 608c), reenacted 
with amendments by the Agricultural Marketing 
Agreement Act of 1937. 
(2) CLASS
III
MILK.—The term ‘‘Class III 
milk’’ means milk classified as Class III milk (milk 
used to produce cheese) under a Federal milk mar-
keting order. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture, acting through the 
Farm Service Agency. 
(b) PAYMENTS REQUIRED.—Using the funds, facili-
ties, and authorities of the Commodity Credit Corporation, 
the Secretary shall make an emergency market loss pay-
ment under this section to dairy producers on a farm in 
the 48 contiguous States, including producers on farms 
not covered by a Federal milk marketing order, whenever 
the national average price for Class III milk under Federal 
milk marketing orders for a calendar year quarter is less 
than a target price of $11.50 per hundredweight for milk 
containing 3.5 percent butterfat. 
(c) PAYMENT AMOUNTS.—
(1) BASIS
FOR
PAYMENT.—Subject to para-
graph (2), payments under subsection (b) to dairy 
producers on a farm for a calendar year quarter
shall be based on the total quantity of milk mar-
keted by the producers during that quarter and de-
signed to ensure that the producers receive not less 
than the target price for that milk. 
(2) PAYMENT AND VOLUME LIMITATIONS.—The 
Secretary may impose maximum payments per farm 
or volume limitations on the quantity of the pro-
ducers’ quarterly production on which payments will 
be made under this section. 
(d) TIME
FOR
PAYMENTS.—Payments required 
under this section for a month shall be made not later 
than the 21st day after the end of a calendar year quarter 
for which payments are required. 
(e) FARM RECONSTITUTION.—The Secretary shall 
carry out this section in such a manner that there are 
no additional outlays under this section as a result of the 
reconstitution of a farm that the Secretary determines oc-
curred in whole or in part for the purpose of increasing 
the amounts received as payments under this section.
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