I
103D CONGRESS
2D SESSION
H. R. 4235
To enable milk producers to implement a national Class IV Pool to establish
a fair and equitable blend price for milk used in export dairy products,
to establish the Dairy Export Marketing Board to administer the Class
IV Pool and otherwise work to expand exports of and develop markets
for milk and dairy products, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 14, 1994
Mr. VOLKMER (for himself, Mr. ROSE, Mr. STENHOLM, Ms. LONG, Mr.
SARPALIUS, Mr. PETERSON of Minnesota, Mr. HOLDEN, Mr. POMEROY,
Ms. DANNER, Mr. ANDREWS of Maine, and Ms. SNOWE) introduced the
following bill; which was referred to the Committee on Agriculture
A BILL
To enable milk producers to implement a national Class
IV Pool to establish a fair and equitable blend price
for milk used in export dairy products, to establish the
Dairy Export Marketing Board to administer the Class
IV Pool and otherwise work to expand exports of and
develop markets for milk and dairy products, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Dairy Producer Mar-
ket Stabilization and Export Development Act of 1994’’.
SEC. 2. FINDINGS, PURPOSES, AND STATEMENT OF POLICY.
(a) FINDINGS.—Congress finds that—
(1) milk and dairy products are vital compo-
nents of a balanced diet and have high nutritive
value, and the production of milk and dairy products
is an important segment of the Nation’s agricultural
industry;
(2) effective Federal dairy programs are needed
to ensure consumers of a reliable and adequate sup-
ply of pure and wholesome milk and dairy products
at reasonable prices, to respond adequately to cur-
rent and anticipated future supply and demand
problems, and to ensure a level of farm income ade-
quate to maintain productive capacity sufficient to
meet anticipated future needs;
(3) the effectiveness of the current Federal
dairy programs is being diminished and the eco-
nomic stress on milk producers increasing due to the
growing demands made on milk producers to provide
funds for reduction of the Federal budget deficit
through direct levies and similar measures included
in budget reconciliation Acts;
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(4) milk producers are being asked to pay more
and more in budget reconciliation levies, while the
economic pressures being placed on the milk produc-
tion industry continue to squeeze them financially;
(5) given the stresses being put on milk produc-
ers and on the current Federal dairy programs, it is
in the national interest and crucial to milk producers
that action be taken to establish a producer—not
government—program to help stabilize milk prices,
develop markets for dairy products, and promote
dairy sales that is financially supported by milk pro-
ducers and managed within the dairy production in-
dustry;
(6) a program to implement a national Class IV
Pool to establish a fair and equitable blend price for
milk used in commercial export dairy products and
to establish a Dairy Export Marketing Board to ad-
minister the Pool and otherwise work to expand ex-
ports of and develop markets for milk and dairy
products will meet the goals of paragraph (5);
(7) since most government outlays under the
Federal milk price support program stem from Com-
modity Credit Corporation removals of surplus dairy
products from the market to reduce the adverse ef-
fect of the surpluses on producer market prices for
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milk, net Federal expenditures under the price sup-
port program can be reduced, and thus budget sav-
ings achieved, by reducing the level of removals of
surplus dairy products by the Corporation under
that program;
(8) an effective way to reduce the level of the
Commodity Credit Corporation’s price support re-
movals is through the implementation of a producer-
financed program as described in paragraph (6), be-
cause such a program will—
(A) ensure producers that there will be a
blend price for milk used in commercially-ex-
ported dairy products sufficiently high that they
will market their milk excess to domestic needs
in the export market rather than sell it to the
Corporation under the price support program;
and
(B) provide nongovernmental moneys to
fund efforts needed to develop additional mar-
kets for United States dairy products;
(9) if milk producers shoulder the financial bur-
den of facilitating export sales of dairy products and
developing markets for domestic milk production
under this new program, it is appropriate, as well as
most conducive to the efficient implementation of
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the program, that the milk production and market-
ing industry be directly responsible for managing the
program;
(10) the Federal milk price support program it-
self is the responsibility of the Secretary of Agri-
culture under the Agricultural Act of 1949, and the
new producer-financed program should be coordi-
nated with the milk price support program and other
Department of Agriculture dairy programs; and
(11) the future of effective milk price stabiliza-
tion requires the opening of new market opportuni-
ties that the efficient production capacity of our Na-
tion’s milk producers can respond to, and the new
producer-financed program provided for in this Act
should include aggressive efforts to search out and
find new market opportunities in promising export
markets.
(b) STATEMENT OF PURPOSES AND POLICY.—
(1) PURPOSES.—The purposes of this Act are
to—
(A) provide for the implementation by pro-
ducers of a national Class IV Pool to establish
a fair and equitable blend price for milk used
in commercially-exported dairy products;
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(B) establish the Dairy Export Marketing
Board to develop and implement annual plans
for the Class IV Pool and exporting dairy prod-
ucts under this Act, and to otherwise work to
expand exports of and develop new markets for
milk and dairy products; and
(C) make related changes in Federal dairy
programs that will aid in maintaining a stable
and efficient dairy production industry in the
United States.
(2) STATEMENTS OF POLICY.—
(A) IN GENERAL.—It is declared to be the
policy of Congress that it is in the public inter-
est, and necessary to protect and strengthen the
Nation’s milk production and marketing sys-
tem, to reduce any adverse effects of Federal
budget deficit reduction actions on milk produc-
ers, and to facilitate the continued effective op-
erations of the Federal dairy programs, that the
implementation of the producer-financed na-
tional Class IV Pool program and the establish-
ment of the Dairy Export Marketing Board
provided for in this Act be achieved.
(B) OPERATIONS
OF
THE
PROGRAM.—It
further is declared to be the policy of Congress
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that the producer-financed national Class IV
Pool program provided for in this Act should be
operated—
(i) in addition to, and not as a sub-
stitute for, the Dairy Export Incentive
Program of the Department of Agriculture;
and
(ii) in a manner consistent with the
trade obligations of the United States.
(C) PROTECTION OF CONSUMERS.—It fur-
ther is declared to be the policy of Congress
that the powers provided in this Act shall not
be used to reduce the production of pure and
wholesome milk and dairy products below the
level required for United States consumers or to
divert production from meeting the needs of
such consumers, and that, in carrying out this
Act, due regard shall be given to the mainte-
nance of a continuous and stable supply of milk
and dairy products adequate to meet the de-
mands of United States consumers at prices
fair both to producers and consumers.
SEC. 3. NATIONAL CLASS IV MILK MARKETING POOL.
(a) IN GENERAL.—
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(1) ESTABLISHMENT.—The Secretary of Agri-
cultural, by regulation as provided in subsection (f),
shall establish a national milk marketing pool, which
shall be known as the ‘‘Class IV Pool’’.
(2) COVERAGE.—Effective for the period begin-
ning January 1, 1995, and ending December 31,
1999, all milk produced in the 48 contiguous States
and marketed by producers shall be entered into the
Class IV Pool. Milk shall enter the Pool at the time
the milk is removed from the farm and before it en-
ters any other marketing channel, including Federal
and State milk marketing orders.
(3) FIRST HANDLER’S DUTY.—Each first han-
dler of milk shall be responsible for ensuring that all
milk is entered into the Class IV Pool and is han-
dled in compliance with the requirements of the
Pool, as provided in this Act and in regulations is-
sued by the Secretary of Agriculture under sub-
section (f).
(b) POOL ADMINISTRATION.—The Class IV Pool
shall be administered, as provided in the annual Class IV
Pool plans established under section 5 of this Act, by the
Dairy Export Marketing Board established under section
4 of this Act.
(c) BLEND PRICING IN THE POOL.—
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(1) ESTABLISHMENT OF BLEND PRICE AND AP-
PLICATION TO ALL MILK IN THE POOL.—The Class
IV Pool shall establish for all milk entering the pool
during each calendar year a blend price for each
hundredweight of such milk, equal to the weighted
average of—
(A) the price support level, per hundred-
weight, for milk under the Agricultural Act of
1949, as applied to all milk entering the pool
that is not used for those export dairy products
described in subparagraph (B), as determined
by the Dairy Export Marketing Board; and
(B) the average market price, per hundred-
weight of milk, for the milk equivalent (total
milk solids basis) used in that amount of export
dairy products projected to be exported during
such year under the Class IV Pool plan for that
year, as determined by the Board,
adjusted as provided in paragraph (2): Provided,
That in no case may such blend price be less than
the milk price support level per hundredweight
minus 10 cents.
(2) ADJUSTMENT
TO
ACCOUNT
FOR
RE-
FUNDS.—The blend price for a year calculated as a
weighted average price for milk under paragraph (1)
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shall be adjusted by the Dairy Export Marketing
Board as necessary to cover the costs of refunds
paid under paragraph (5) and other expenditures
made out of the settlement fund, as provided in sub-
section (d)(3), during such year.
(3) QUARTERLY ADJUSTMENTS.—The Class IV
Pool blend price established for a year may be ad-
justed at the beginning of each of the second, third,
and fourth quarters of such year to reflect changes
in the Board’s determinations as to the amount of
milk that will enter the Pool during the year, the
amount of export dairy products eligible for blend
price payments under paragraph (4)(B), and dairy
product export market prices during such year.
(4) APPLICATION OF BLEND PRICING TO MILK
ENTERING THE POOL.—The Board shall apply the
Class IV Pool blend price established under para-
graph (1) or (3), as appropriate, to milk entering
the Pool by—
(A) collecting on each hundredweight of
milk entering the Pool, and depositing into the
settlement fund established under subsection
(e), a uniform adjustment amount equal to the
difference between the per hundredweight price
support level for milk and the blend price, ex-
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cept that, whenever the difference between the
price support level and the blend price is less
than 1 cent, or there is no difference between
the two figures, the Board may collect up to 1
cent on each hundredweight of milk entering
the Pool as necessary to adequately fund the
operation of the Pool and the Board; and
(B) paying out of the settlement fund, on
dairy products commercially exported from the
United States (not including exports under the
Dairy Export Incentive Program) that cumula-
tively do not exceed the level of exports for
which the Class IV blend pricing shall be estab-
lished for the year, as provided in the Class IV
Pool plan for the year, an amount per hundred-
weight of milk equivalent (total milk solids
basis) exported that reflects the difference be-
tween the milk equivalent (total milk solids
basis) market price for the product exported
and the Pool blend price.
(5) REFUNDS.—The Dairy Export Marketing
Board shall provide a refund of the entire amount
remitted to the settlement fund on a producer’s milk
entering the Class IV Pool during a calendar year,
if the producer provides evidence that the producer
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did not increase marketings in that calendar year
when compared to the producer’s marketings during
the immediately preceding calendar year. A refund
under this paragraph shall not be considered as any
type of price support or payment for purposes of
sections 1211 and 1221 of the Food Security Act of
1985 (16 U.S.C. 3811 and 3821).
(6) WHEN BLEND PRICE PAYMENTS MADE.—
Blend price payments on dairy product exports
under paragraph (4)(B) may be made before, at the
time, or after the dairy product involved is exported
as long as the milk equivalent (total milk solids
basis) market price for the exported product is ade-
quately documented and established to the satisfac-
tion of the Board.
(d) HANDLER REMITTANCES.—Each first handler of
milk produced in the 48 contiguous States and marketed
by producers shall collect and remit to the Dairy Export
Marketing Board blend price adjustments required under
subsection (c)(4)(A) on all milk handled by such handler.
(e) SETTLEMENT FUND.—
(1) IN GENERAL.—The Dairy Export Market-
ing Board shall establish a special fund, to be known
as the ‘‘settlement fund’’. Monies in such fund shall
be available solely for the use of the Board to oper-
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ate the Class IV Pool, make blend price payments,
other payments as provided in paragraph (3), and
refunds under subsection (c)(5), as provided in the
budgets of the Board.
(2) MONEY INTO THE FUND.—There shall be
deposited into the settlement fund—
(A) all blend price adjustments remitted by
first handlers under subsection (d); and
(B) all revenues received by the Board
from sales of dairy products it has directly re-
moved from the domestic market or from any
other source.
(3) ADDITIONAL EXPENDITURES OUT OF THE
SETTLEMENT
FUND.—Moneys in the settlement
fund may be used by the Board for export expansion
and market development activities, and administra-
tive activities of the Board, provided for in sections
4 and 5 of this Act.
(4) TERMINATION OF FUND.—The settlement
fund shall terminate, and any monies remaining in
the Fund returned to milk producers as rebates
under section 4(l), at such time as the Board winds
up its affairs and all legal obligations of the Board.
(f) USDA REGULATIONS.—The Secretary of Agri-
culture, by regulation, shall establish—
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(1) rules governing the manner in which blend
price adjustments shall be remitted by first handlers
to the settlement fund for milk marketed through
Federal or State milk marketing orders, and for
milk marketed through producer-handlers or other
operations outside the Federal and State milk mar-
keting order systems;
(2) provisions for coordination of the operation
of the Class IV Pool with milk marketings under
Federal and State milk marketing orders, and with
milk marketing done outside Federal or State milk
marketing orders;
(3) such other terms and conditions, not incon-
sistent with the provisions of this Act, necessary to
effectuate the establishment and operation of the
Class IV Pool, the operation of the Dairy Export
Marketing Board, and the implementation of annual
Class IV Pool plans; and
(4) provisions for assessment of penalties for
violations of this Act and the Secretary’s regula-
tions, and for the filing of petitions by persons sub-
ject to such regulations objecting to such regulations
or seeking exemption from them. For the purposes
of regulations under this paragraph, notwithstanding
any other provision of law, the provisions of para-
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graphs (14) and (15) of section 8c of the Agricul-
tural Adjustment Act, as reenacted and amended by
the Agricultural Marketing Agreement Act of 1937
(7 U.S.C. 608c), shall be applicable to this Act and
the regulations under this subsection and persons
subject to this Act or regulations as if such laws are
orders, and such persons are handlers, under section
8c.
SEC. 4. DAIRY EXPORT MARKETING BOARD.
(a) ESTABLISHMENT.—Not later than October 1,
1994, or 30 days after the date of the enactment of this
Act, whichever occurs later, the Secretary of Agriculture
shall establish the Dairy Export Marketing Board to ad-
minister the national Class IV Pool established under sec-
tion 3, develop and implement Class IV Pool plans, and
perform other tasks of the Board provided for in this Act.
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Dairy Export Market-
ing Board shall consist of 18 members appointed by
the Secretary of Agriculture as provided in this sub-
section. No person may be appointed to the Board
unless the Secretary determines that the person
meets the qualification criteria set out in paragraph
(5).
(2) COMPOSITION OF BOARD.—
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(A) REGIONAL
DISTRIBUTION.—The 18
seats on the Board shall be evenly allocated
among the 6 geographic regions described in
paragraph (3).
(B) 
REGIONAL
APPOINTMENTS.—Three
members shall be appointed to the Board from
each of the 6 geographic regions, as follows:
(i) 2 members shall be qualified milk
producers whose farms are located in that
region, each appointed from among nomi-
nees selected by the milk producers in such
region, as provided in this subsection; and
(ii) 1 member shall be a qualified per-
son employed in some capacity in the dairy
industry other than as a producer, and se-
lected in such manner as the Secretary de-
termines appropriate. For any individual
employed by a company or organization
that conducts business in more than one
such region, such individual will be deemed
to be located in the region in which such
individual’s normal place of business is
located.
(3) SIX GEOGRAPHIC REGIONS.—For purposes
of making regional appointments of persons to the
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Board, as provided in paragraph (2), the 48 contig-
uous States shall be grouped into 6 regions, as fol-
lows:
(A) Region I: Connecticut, Maine, Massa-
chusetts, New Hampshire, New Jersey, New
York, Pennsylvania, Rhode Island, and Ver-
mont.
(B) Region II: Illinois, Indiana, Iowa, Kan-
sas, Michigan, Missouri, Nebraska, and Ohio.
(C) Region III: Alabama, Arkansas, Dela-
ware, Florida, Georgia, Kentucky, Louisiana,
Maryland, Mississippi, North Carolina, Okla-
homa, South Carolina, Tennessee, Texas, Vir-
ginia, and West Virginia.
(D) Region IV: Wisconsin.
(E) Region V: Colorado, Idaho, Minnesota,
Montana, North Dakota, Oregon, South Da-
kota, Utah, Washington, and Wyoming.
(F) Region VI: Arizona, California, Ne-
vada, and New Mexico.
(4) SELECTION
OF
NOMINEES
FOR
APPOINT-
MENT AS PRODUCER MEMBERS.—
(A) TWO NOMINEES REQUIRED.—For the
appointment of the initial Board and whenever
there is a vacancy on the Board, the producers
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in each of the 6 geographic regions described in
paragraph (3) that has a producer seat on the
Board that is vacant shall choose, by election,
two producer nominees for such seat.
(B) NOMINATION
PROCESS.—The Sec-
retary shall begin the process of appointing a
person to fill a producer seat on the Board by
soliciting recommendations of the names of pro-
ducers in the region involved to be listed on the
ballot for election as a nominee for appointment
to that seat. The names and qualifications of
producers for inclusion on the ballot may be
submitted by any milk producer in the region,
or any organization that represents milk pro-
ducers in such region. The Secretary shall de-
termine whether each such producer whose
name is submitted for inclusion on the ballot is
eligible to serve on the Board and meets the
qualification criteria set out in paragraph (5),
and shall include on the ballot the name of
every qualified person determined to be eligible
and qualified if such person agrees to permit
his or her name being put on the ballot.
(C) ELECTIONS.—Following the develop-
ment of any ballot under subparagraph (B), the
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Secretary shall conduct an election among milk
producers in the region involved to choose the
two nominees for appointment to the vacant
seat to which the ballot applies. Each producer
shall have one vote in the election of each nomi-
nee, and bloc voting as provided in subpara-
graph (D) shall be permitted. The two persons
receiving the highest number of votes in the
election shall be the nominees.
(D) VOTING BY ASSOCIATIONS.—For the
purpose of elections under this paragraph, the
Secretary shall consider the vote cast by any co-
operative association of producers, engaged in a
bona fide manner in marketing milk or dairy
products, as the vote of the producers who are
members of or under contract with such cooper-
ative association of producers. If a cooperative
association of producers elects to vote on behalf
of its members, such cooperative association
shall provide each producer, on whose behalf
the cooperative association is voting, a descrip-
tion of the election process and a description of
each nominee (including the person’s qualifica-
tions), together with a statement of the manner
in which the cooperative association intends to
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cast its vote on behalf of the membership. Such
information shall inform the producer of proce-
dures to follow to cast an individual ballot
should the producer so choose within the period
of time established by the Secretary for casting
ballots. Such notification shall be made at least
15 days prior to the election and shall include
an official ballot. The ballots shall be tabulated
by the Secretary and the vote of the cooperative
association shall be adjusted to reflect such in-
dividual votes.
(E) ADDITIONAL
RULES.—The Secretary
shall establish such additional rules for the con-
duct of elections to choose producer nominees
as are appropriate.
(5) QUALIFICATION CRITERIA.—
(A) BASIC CRITERIA.—The name of a per-
son may not be included on the ballot in an
election to choose producer nominees for the
Board, nor may the Secretary appoint any
member to the Board, unless the Secretary de-
termines that such person meets the following
qualification criteria:
(i) the person must have substantial
experience or a high level of expertise in
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the production of milk, the marketing of
milk or dairy products, or the financing of
such marketing activities;
(ii) if the person is being considered
for a producer seat on the Board, the per-
son must have been a milk producer for at
least 5 years; and
(iii) if the person is being considered
for a non-producer seat on the board, the
person must have leadership experience in
his or her field of expertise.
(B) FURTHER
CRITERIA.—In choosing
among producer nominees or directly selecting
non-producer members for appointment to the
Board, the Secretary shall give priority to per-
sons with—
(i) if the appointment is to a non-pro-
ducer seat on the Board, substantial expe-
rience as a professional milk marketer; or
(ii) practical familiarity with, or dem-
onstrated knowledge of, the process of
marketing agricultural commodities for ex-
port or the financing of such transactions;
or
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(iii) practical familiarity with, or dem-
onstrated knowledge of, the mechanics and
market effects of moving dairy products
from the processing plant into the market;
or
(iv) substantial experience with the
Federal milk price support program, or
Commodity Credit Corporation removals of
dairy products from the market under that
program, or operations of milk marketing
order blend price pools.
(6) DIVERSITY OF APPOINTMENT.—In making
appointments to the Board, the Secretary shall en-
sure that not more than one person employed by a
particular company or associated with a particular
cooperative organization that can bloc vote in the
election of producer nominees sits on the Board at
the same time.
(7) REJECTION.—The Secretary may reject any
nominee selected by milk producers. If there are in-
sufficient nominations from which to appoint mem-
bers to the Board as a result of the Secretary reject-
ing nominees selected by milk producers, milk pro-
ducers shall select additional nominees, as provided
in this subsection.
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(8) TIME SCHEDULE.—The Secretary shall con-
duct the regional elections of producer nominees for
appointment to the initial Board and appoint all the
initial members to the Board no later than October
1, 1994, or 30 days after the date of the enactment
of this Act, whichever occurs later. Thereafter,
whenever a seat becomes vacant for any reason, the
Secretary, as soon as practicable, shall conduct an
election (if the vacant seat is a producer seat) and
make an appointment of a person to fill the vacant
seat.
(9) TERMS OF MEMBERS.—Each member of the
Board shall serve for a 3-year term except that
terms shall be staggered, as follows:
(A) 4 of the producer members and 2 of
the non-producer members appointed to the ini-
tial Board shall have a 1-year term;
(B) 4 of the producer members and 2 of
the non-producer members appointed to the ini-
tial Board shall have a 2-year term; and
(C) 4 of the producer members and 2 of
the non-producer members appointed to the ini-
tial Board shall have a full 3-year term.
(10) OPERATIONS
COMMITTEE.—The Board
may establish an Operations Committee for con-
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sultation and advice, consisting of persons not sit-
ting on the Board who as a group are suitably quali-
fied, either in experience or knowledge, in the var-
ious aspects of the dairy industry, including but not
limited to marketing order blend price pools, export
marketing, and dairy research and production. The
Operations Committee shall have no right to cast
votes in any matter voted on by the Board or the
Board’s member committees, nor shall it have the
power to perform any of the functions of the Board
under this Act.
(11) CONFLICT RULES.—The members of the
Board shall be subject to such conflict of interest
rules as determined appropriate by the Secretary.
(12) REIMBURSEMENT FOR EXPENSES.—Mem-
bers of the Board and the Operating Committee
shall serve without pay, but shall be allowed reim-
bursement for expenses incurred in their service on
the Board or Committee, including reasonable travel
costs and out-of-pocket expenses when required to be
away from their home or place of business in the
service of the Board or Committee.
(13) REMOVAL
FOR
CAUSE.—The Secretary
may remove any member of the Board for good
cause shown.
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(14) TERMINATION
OF
THE
BOARD.—The
Board shall terminate at such date—not later than
June 30, 2000—agreed on by the Secretary and the
Board, unless extended by later enactment of Con-
gress.
(c) BOARD PROCEDURES.—
(1) MEETINGS OF THE BOARD.—
(A) FIRST
MEETING.—Within 2 weeks
after a quorum has been appointed to the initial
Dairy Export Marketing Board, the Secretary
of Agriculture shall convene the Board for its
initial meeting; and at that meeting the Board
shall elect officers and adopt written bylaws and
rules of procedure to govern its meetings, and
determine a place of domicile for the Board.
(B) SUBSEQUENT
MEETINGS.—Following
the initial meeting, the Board shall meet at the
call of the chair, but at least once every 3
months.
(2) QUORUM.—A quorum of the Board shall be
10 persons.
(3) NOTICE TO SECRETARY; EX OFFICIO REP-
RESENTATION.—The Board shall notify the Sec-
retary of Agriculture in advance of each meeting of
the Board. The Secretary, or a representative of the
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Secretary, shall attend each meeting as a non-voting
ex officio member of the Board.
(d) DUTIES
OF
THE BOARD.—The Dairy Export
Marketing Board shall have the duties to—
(1) prepare annually, for each of the 1995
through 1999 calendar years, a plan for the oper-
ation during that year of the Class IV Pool estab-
lished under section 3, and establish a per hundred-
weight blend price for milk entering the Pool during
such year as provided in this Act;
(2) before the beginning of the second, third,
and fourth quarter of each calendar year, make ad-
justments in the blend price for milk in the Pool as
necessary to reflect changes in the Board’s deter-
minations as to the amount of milk that will enter
the Pool during the year, the amount of export dairy
products eligible for blend price payments under sec-
tion 3(c)(4)(B) of this Act, and dairy product export
market prices during such year;
(3) prepare the Board’s proposed budget for
each calendar year it is in operation, as provided in
subsection (f);
(4) implement each annual Class IV Pool plan
and budget, administer the Class IV Pool, and co-
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ordinate activities under the plan with the programs
of the Secretary of Agriculture;
(5) evaluate results under each annual Class IV
Pool plan and report on the evaluations to the Sec-
retary, and provide a copy of each such report to the
Senate Committee on Agriculture, Nutrition, and
Forestry and the House Committee on Agriculture;
(6) with respect to the estimate of the value
and volume of Commodity Credit Corporation milk
and milk product purchases made by the Secretary
by November 20 of each year under section 204(f)
of the Agricultural Act of 1949, in cooperation with
the Secretary, make monthly revisions of such esti-
mate for each month of the year to which the esti-
mate applies;
(7) receive, investigate, and report to the Sec-
retary complaints of violations of this Act and regu-
lations issued under this Act; and
(8) manage the settlement fund established
under section 3(e).
(e) POWERS OF THE BOARD.—
(1) GENERAL
POWERS.—The Dairy Export
Marketing Board may—
(A) adopt bylaws and issue rules and regu-
lations governing the manner in which its busi-
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ness may be conducted and the powers vested
in it may be exercised;
(B) sue and be sued, complain and defend,
in any court of law or equity, State or Federal.
All suits of a civil nature at common law or in
equity to which the Board shall be a party shall
be deemed to arise under the laws of the United
States, and the United States district courts
shall have original jurisdiction thereof, without
regard to the amount in controversy, and the
Board, in any capacity, without bond or secu-
rity, may remove any such action, suit, or pro-
ceeding from a State court to the United States
district court by following any procedure for re-
moval then in effect. Any suit filed against the
Board shall be filed in the district in which the
Board is domiciled or in the district wherein the
plaintiff resides or is engaged in business;
(C) incur and pay for administrative and
other expenses under this Act;
(D) appoint staff, define their duties, and
fix and provide their compensation;
(E) enter into contracts and agreements as
necessary in the conduct of its business;
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(F) contract for the use, in accordance
with the usual customs of trade and commerce,
of plants and facilities for the physical han-
dling, storage, processing, servicing, and trans-
portation of dairy products subject to its con-
trol;
(G) make final and conclusive settlement
and adjustment of any claims by or against the
Board or its accounts;
(H) use and expend monies in the settle-
ment fund established under section 3(e); and
(I) exercise other powers that are inciden-
tal to its performance of the functions required
or authorized for it under this Act.
(2) SPECIFIC
POWERS.—To meet its duties
under this Act and implement annual Class IV Pool
plans, the Board may use its general powers to—
(A) remove, or cause the removal, of dairy
products from the domestic commercial market
or accept donated stocks from the Commodity
Credit Corporation, and maintain such products
in inventory;
(B) dispose, or cause the disposal, of dairy
products it has removed from the market or re-
ceived from the Commodity Credit Corporation
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through outlets that are not in competition with
United States commercial markets, primarily
through export sales;
(C) transfer to the Commodity Credit Cor-
poration, at the Corporation’s announced price,
dairy products it has removed from the market,
as necessary for Board or Corporation stock
management purposes, and the regulations of
the Corporation shall so provide;
(D) cause the export of dairy cattle;
(E) conduct other activities related to mar-
ket development and product disposal specified
in section 5, as necessary to meet its respon-
sibilities under this Act and annual Class IV
Pool plans; and
(F) recommend to the Secretary amend-
ments to the regulations issued under this Act.
(f) BUDGETS OF THE BOARD.—
(1) PREPARATION.—Not later than October 31
of each of the years 1994 through 1998 (or, with re-
spect to the first budget, 60 days after the date of
the enactment of this Act if that sixtieth day is later
than October 31, 1994) the Dairy Export Marketing
Board shall prepare a budget of its anticipated ex-
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penses and disbursements in the upcoming calendar
year.
(2) ITEMS IN EACH BUDGET.—
(A) IN GENERAL.—Each such budget shall
provide—
(i) a detailed account of the Board’s
anticipated administrative expenses and
other outlays to be incurred in implement-
ing the annual Class IV Pool plan for the
upcoming year;
(ii) an estimate of expected blend
price revenues and other revenues of, and
blend price payments on dairy exports and
refunds made by, the Board during the up-
coming year, to which the budget of all
other expenditures of the Board during
such year shall be reconciled;
(iii) an analysis of anticipated expend-
itures for administrative expenses, showing
how they are being kept to the minimum
necessary to operate the Class IV Pool and
the programs of the Board; and
(iv) a description of the anticipated
contracts during such year for the removal
and disposition of dairy products.
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(B) ADDITIONAL ITEMS.—The budget pre-
pared for calendar year 1995 shall include an
additional amount to reimburse the Commodity
Credit Corporation for expenditures to cover ex-
penses of the Board prior to January 1, 1995,
as provided for in subsection (h)(1)(B); and the
budget prepared for calendar year 1999 shall
include an additional amount to cover the
Board’s administrative expenses to be incurred
in calendar year 2000 in wrapping up its busi-
ness.
(3) SUBMISSION
WITH
PLAN.—Each budget
prepared under this subsection shall be submitted to
the Secretary of Agriculture with the annual Class
IV Pool plan for the year involved.
(g) ADMINISTRATION; CONTRACTING.—
(1) LIMITATION
ON
ADMINISTRATIVE
EX-
PENSES.—For any calendar year in which the Sec-
retary of Agriculture estimates under section 204(f)
of the Agricultural Act of 1949 that the level of
Commodity Credit Corporation purchases of milk
and the products of milk will exceed 5,000,000,000
pounds (milk equivalent, total milk solids basis), the
Board may not budget for or incur administrative
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expenses (including the cost of paying employees of
the Board) in the year that exceed the lesser of—
(A) $2,000,000, or
(B) 5 percent of the annual budget of the
Board for the year.
(2) CONTRACTS FOR SERVICES.—
(A) IN GENERAL.—To ensure efficient use
of funds available to the Board under this Act
and avoid duplication of efforts, whenever pos-
sible, the Board shall enter into contracts and
agreements for the removal of dairy products
from the market, the disposition of such prod-
ucts, and such other nonadministrative activi-
ties of the Board, and for the payment of cost
thereof with funds available to the Board under
this Act.
(B) SCOPE.—The tasks that may be in-
cluded under a contract or agreement include,
but are not limited to, offers to buy, purchases
of dairy products, storage and delivery of dairy
products, management of dairy product inven-
tories, and statistical collection and analysis.
(C) REQUIREMENTS.—In any contract or
agreement of the Board under this paragraph,
the contracting or agreeing party shall agree to
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keep accurate records of all its transactions, ac-
count for funds received and expended, make
periodic reports to the Board of activities con-
ducted, and make such other reports as the
Board may require.
(3) DIRECT
SALES
BY
OTHERS.—The Board
shall ensure, to the extent practicable, that the ac-
tual export marketing and sale of dairy products for
which blend price payments are made available
under this Act are done by dairy cooperatives or
other persons engaged in international marketing.
(h) FUNDING FOR THE BOARD; EXPENDITURES.—
(1) IN GENERAL.—
(A) SETTLEMENT FUND.—Monies in the
settlement fund established under section 3(e)
shall be available to the Dairy Export Market-
ing Board, effective January 1, 1995, for ex-
penditure as provided in this subsection.
(B) CCC FUNDS.—Notwithstanding any
other provision of law, prior to January 1,
1995, the activities of the Board in starting up
operation and preparing the initial annual Class
IV Pool plan shall be paid with funds of the
Commodity Credit Corporation. The Corpora-
tion shall be reimbursed by the Board for such
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payments from monies placed in the settlement
fund during 1995.
(2) LIMITATION.—Monies in the settlement
fund may be expended by the Board only to cover
budgeted activities of the Board under a budget es-
tablished under subsection (f), including expendi-
tures to transfer to the Commodity Credit Corpora-
tion general account reimbursements provided for in
paragraph (1)(B), and to provide for rebates to milk
producers of excess monies remaining in the Fund
when the Board is terminated, as provided in sub-
section (l).
(3) CARRYOVER OF FUNDS.—To allow for con-
tinuity of activities of the Board from year to year,
monies in the settlement fund shall be available to
the Board without fiscal or calendar year limitation,
except that, in any year into which monies are car-
ried over, any Class IV Pool blend price for the year
under section 3(c) shall be reduced so as to reduce
blend price adjustments remitted to the settlement
fund during such year by the amount of the carry-
over.
(j) BOOKS AND RECORDS.—
(1) IN GENERAL.—The Dairy Export Market-
ing Board shall—
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(A) maintain such books and records
(which shall be available to the Secretary for in-
spection and audit) as the Secretary may pre-
scribe;
(B) prepare and submit to the Secretary,
from time to time, such reports as the Sec-
retary may prescribe; and
(C) account for the receipt and disburse-
ment of all funds entrusted to the Board.
(2) AUDITS.—The Board shall cause its books
and records to be audited by an independent auditor
at the end of each fiscal year, and a report of each
such audit to be submitted to the Secretary.
(k) FACA NOT APPLICABLE.—The Federal Advisory
Committee Act (5 U.S.C. App. 2) shall not apply to the
Dairy Export Marketing Board, or the operations of the
Board.
(l) REBATES ON TERMINATION OF BOARD.—
(1) IN GENERAL.—At the time that the Dairy
Export Marketing Board terminates and winds up
its affairs, any funds remaining in the settlement
fund established under section 3(e) of this Act shall
be rebated to milk producers who have been subject
to the operation of the Class IV Pool under section
3, unless the administrative costs of distributing any
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such rebate will exceed the amount rebated (in which
case, the amount shall revert to the Commodity
Credit Corporation general account). Rebates shall
be made pro rata, based on the cumulative amount
of milk entered into the Class IV Pool by each milk
producer to which refunds under section 3(c)(5) do
not apply during the period the Class IV Pool was
in operation.
(2) REBATE NOT DEEMED A GOVERNMENT PAY-
MENT.—Any rebate under this paragraph shall not
be considered as any type of price support or pay-
ment for purposes of section 1211 or 1212 of the
Food Security Act of 1985 (16 U.S.C. 3811 and
3821).
SEC. 5. ANNUAL CLASS IV POOL PLANS.
(a) REQUIREMENTS.—The Dairy Export Marketing
Board shall prepare and implement an annual Class IV
Pool plan for each of the calendar years 1995 through
1999, as provided in this section, that shall provide a busi-
ness plan of operation for the Class IV Pool and the Board
for the year, and shall include the following elements:
(1) GENERALLY.—The plan for any year may
include such of the activities described in subsection
(d) or comparable activities within the authority of
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prices, and to improve farm income during such
year.
(3) WHEN ESTIMATED CCC PURCHASES EXCEED
7,000,000,000 POUNDS.—For any year in which the
Secretary estimates, by November 20 of the preced-
ing year under section 204(f) of the Agricultural Act
of 1949, that Commodity Credit Corporation pur-
chases of milk and the products of milk (less sales
under section 407 of the Agricultural Act of 1949
for unrestricted use) will exceed 7,000,000,000
pounds (milk equivalent, total milk solids basis), the
plan shall provide for such market intervention
measures that the Board agrees with the Commodity
Credit Corporation that it should undertake if ap-
proved by the Secretary, regarding those anticipated
purchases in excess of 7,000,000,000 pounds, using
for such purposes monies transferred to the settle-
ment fund established under section 3(e) of this Act
by the Commodity Credit Corporation from the col-
lected reductions in price under section 204(g) of
the Agricultural Act of 1949.
(4) CONTINUATION AND CARRYOVER.—For the
second and succeeding plans, to the extent necessary
or appropriate, the plan shall provide for the con-
tinuation of activities initiated in the preceding year
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and the carryover of funds made available for the
preceding year but not expended and the payment of
obligations incurred in the preceding year but not
paid.
(5) 1999 PLAN.—The plan for calendar year
1999 shall cover activities and expenditures of the
Board in calendar year 2000 to wind up the busi-
ness of the Board.
(b) SCHEDULE FOR DEVELOPMENT OF PLAN.—Each
annual Class IV Pool plan for a year—
(1) shall be prepared, and the Class IV blend
price for the year shall be determined, during the
period after the preliminary estimate of net Com-
modity Credit Corporation purchases of milk and
milk products for a year is issued on August 1 of
the preceding year; and
(2) shall be submitted to the Secretary not later
than October 31 preceding the year the plan ad-
dresses, except that the plan for 1995 shall be sub-
mitted not later than 60 days after the date of the
enactment of this Act if such sixtieth day is later
than October 31, 1994.
(c) QUARTERLY REVISIONS.—
(1) IN GENERAL.—The annual Class IV Pool
plan for any year shall be updated and revised at the
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beginning of each of the second, third, and fourth
quarters of the year, or at such other times deter-
mined necessary by the Board.
(2) REVISION OF DEDUCTION RATE.—Any revi-
sion of a plan at the beginning of the second, third,
or fourth quarter of a year, as provided in para-
graph (1), may include a revision in the blend price
for milk entering the Class IV Pool under section 3
for such year, as necessary to reflect changes in the
Board’s determinations as to the amount of milk
that will enter the Pool during the year, the amount
of export dairy products eligible for blend price pay-
ments under section 3(c)(4)(B) of this Act, and
dairy product export market prices during such year.
(d) ACTIVITIES OF THE BOARD IN IMPLEMENTING A
PLAN.—
(1) WHEN ESTIMATED CCC PURCHASES EXCEED
5,000,000,000 POUNDS.—The Dairy Export Marketing
Board, in implementing the annual Class IV Pool
plan for any year in which the Secretary estimates,
by November 20 of the preceding year under section
204(f) of the Agricultural Act of 1949, that Com-
modity Credit Corporation purchases of milk and the
products of milk (less sales under section 407 of the
Agricultural Act of 1949 for unrestricted use) will
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exceed 5,000,000,000 pounds (milk equivalent, total
milk solids basis), the Board may undertake the fol-
lowing activities with respect to the amount of milk
included in the portion of Corporation purchases in
excess of 5,000,000,000 pounds, in addition to ad-
ministering the Pool and managing the settlement
fund estimated under section 3(e):
(A) To acquire, or otherwise cause the re-
moval of, dairy products from domestic com-
mercial markets on the basis of bids by sellers
in response to invitations for bids announced by
the Board.
(B) To acquire, or otherwise cause the re-
moval of, dairy products from domestic com-
mercial markets at announced prices during pe-
riods announced by the Board.
(C) To implement a program to cause the
export of dairy products the Board has removed
from the market, in coordination with the ac-
tivities of the Foreign Agricultural Service in
implementing the Dairy Export Incentive Pro-
gram under section 153 of the Food Security
Act of 1985 (15 U.S.C. 713a–14). Under the
program, the Board may cause the export of
dairy products with the assistance of export bo-
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nuses provided by the Board, and determined
on the basis of bids by exporters in response to
invitations for bids announced by the Board. In
implementing such a program, the Board shall
enter into an agreement with the General Sales
Manager to seek the Manager’s prior approval
of any export transactions under the program.
This program shall not be implemented as a re-
placement for the Dairy Export Incentive Pro-
gram, but as a supplement to it.
(D) To implement a program to cause the
export of dairy cattle. Under the program, the
Board may cause the export of dairy cattle with
the assistance of export bonuses provided by the
Board, and determined on the basis of bids by
exporters in response to invitations for bids an-
nounced by the Board.
(E) To effect the sale abroad, at world
market prices, of dairy products removed from
the market by the Board.
(F) To effect the domestic sale for unre-
stricted use of dairy products removed from the
market by the Board at market prices, but in
no case less than 110 percent of the Commodity
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Credit Corporation announced purchase prices
for the products.
(G) To donate, through the Secretary,
products the Board has removed from the mar-
ket to domestic and international feeding and
aid programs, as needed for emergency or dis-
aster assistance.
(H) To transfer dairy products it has re-
moved from the market to the Commodity
Credit Corporation at the Corporation’s an-
nounced purchase price (less an amount, deter-
mined by the Secretary, to represent the aver-
age level of bonus paid to exporters under the
Dairy Export Incentive Program), as necessary
to manage Corporation or Board inventories.
(2) CCC OPERATIONS.—Notwithstanding any
other provision of law, the Commodity Credit Cor-
poration shall accept the transfer of dairy products
from the Board as provided in paragraph (1)(H),
and at any time may transfer its excess inventories
of dairy products to the control of the Board, as
necessary to manage Corporation or Board stocks or
as provided for in paragraph (4)(A).
(3) WHEN
ESTIMATED
CCC
PURCHASES
ARE
5,000,000,000 POUNDS OR LESS.—The Board, in im-
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plementing the annual Class IV Pool plan for any
year in which the Secretary estimates, by November
20 of the preceding year under section 204(f) of the
Agricultural Act of 1949, that Commodity Credit
Corporation purchases of milk and the products of
milk (less sales under section 407 of the Agricultural
Act 
of 
1949 
for 
unrestricted 
use) 
will 
be
5,000,000,000 pounds or less (milk equivalent, total
milk solids basis), the Board may undertake the fol-
lowing activities as authorized under the plan:
(A) To dispose of carryover stocks of dairy
products it had removed from the market in a
previous year, in any manner as specified in
paragraph (1).
(B) To cause the export of dairy heifers
with the assistance of export bonuses provided
by the Board on the basis of bids by exporters
in response to invitations for bids announced by
the Board.
(4) IN GENERAL.—The Board, in implementing
the annual Class IV Pool plan for any year, may un-
dertake the following activities as authorized under
the plan:
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(A) To accept stocks of dairy products
transferred from the Commodity Credit Cor-
poration for use in projects under the plan.
(B) To provide funds to the Foreign Agri-
cultural Service cooperator organization for
dairy products to implement export market de-
velopment projects.
(C) To work with the Commodity Credit
Corporation, the Foreign Agricultural Service,
marketing organizations, and other entities in
the dairy industry in facilitating export sales of
dairy products.
(D) To work with the Commodity Credit
Corporation and, through the Secretary, hu-
manitarian relief and development organizations
in providing dairy products for emergency relief
and development programs.
(E) To develop surplus disposal opportuni-
ties for use in years in which removals of sur-
plus dairy products will be needed.
(5) CONTRACTS AND AGREEMENTS.—In order
to efficiently manage stock acquisition and disposi-
tion under the annual Class IV Pool plans and to
avoid excessive overhead and unnecessary duplica-
tion in any area of the Board’s operations, the
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Board shall contract or enter agreements, as pro-
vided in section 4(g)(2), for the performance of any
or all of the functions described in paragraphs (1),
(3), and (4) or similar functions included in annual
plans.
(6) LIMITS ON MARKET INTERVENTION.—The
Board shall ensure that any activity under an an-
nual Class IV Pool plan does not interfere with nor-
mal commercial inventory build-ups of dairy prod-
ucts that are necessary to ensure adequate supplies
on a year-round basis. In this regard, the criterion
the Board shall use in planning activities under any
plan is that intervention by the Board in the market
should promote moderate, regulated market adjust-
ments and prevent steep or contraseasonal changes
in the prices for dairy products.
SEC. 6. REVISIONS OF AUTHORITY FOR ‘‘EXCESS PUR-
CHASES’’ REDUCTIONS IN PRICE.
Effective January 1, 1995, subsection (g) of section
204 of the Agricultural Act of 1949 (7 U.S.C. 1446e) is
amended by adding at the end thereof the following:
‘‘(3) TARGETED REDUCTIONS.—
‘‘(A) IN GENERAL.—At any time during
which a reduction in price under this subsection
is in effect, if during the two consecutive
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months immediately preceding any month, the
United States average manufacturing grade
milk price, as reported by the Secretary, does
not exceed the Federal support price for milk
by more than 50 cents per hundredweight, be-
ginning the month following such two consecu-
tive months the reduction in price shall cease
being collected on a uniform basis on all milk
produced in the 48 contiguous States and mar-
keted by producers for commercial use, and
shall be collected from each milk producer in
the contiguous 48 States only on the quantity
of milk marketed during each month by the
producer in excess of the producer’s monthly
base for milk marketings.
‘‘(B) RATE OF REDUCTION.—The amount
of the reduction in the price received by produc-
ers on such over-base milk marketings shall be
an amount per hundredweight determined by
the Secretary to be sufficient, when applied to
the amount of all such over-base milk market-
ings during the remainder of the year, as esti-
mated by the Secretary, to result in total reduc-
tions during the remainder of the year equal to
the total amounts of reductions in price that
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would otherwise be made on a uniform basis on
all milk marketings under the procedures pro-
vided in paragraph (2).
‘‘(C) BASES.—For purposes of determin-
ing, for each milk producer, whether the pro-
ducer is subject to the targeted reduction in
price under this paragraph, an annual base
made up to 12 monthly bases will be established
by the Secretary for each dairy farm reflecting
the farm’s milk marketings during the preced-
ing year. New milk producers will be assigned
a base equal to 75 percent of their milk market-
ings during each month of the year the reduc-
tion is in effect.
‘‘(D) 
MAXIMUM
TARGETED
REDUC-
TIONS.—No milk producer shall be liable for a
targeted reduction in price under this para-
graph on more than 25 percent of the produc-
er’s marketings during any month targeted re-
ductions are in effect.
‘‘(E) TERMINATION OF TARGETED REDUC-
TIONS.—If, after targeted reductions in price
are implemented during a year under this para-
graph, the United States average manufactur-
ing grade milk price, as reported by the Sec-
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retary, rises to exceed the support price for
milk by more than $1.50 per hundredweight
during two consecutive months of such year, be-
ginning the following month, the targeted re-
duction in price will cease being collected, and
the reduction in price shall be made uniformly
on all milk produced in the 48 contiguous
States and marketed by producers for commer-
cial use in the amount provided for in para-
graph (2).
‘‘(4) TERMINATION OF ALL REDUCTIONS.—Not-
withstanding any other provision of this subsection,
if at any time during a year in which reductions in
price are being made under this subsection, the Sec-
retary, in consultation with the Dairy Export Mar-
keting Board established under section 4 of the
Dairy Producer Market Stabilization and Export
Development Act of 1994, projects (based on the
monthly revised estimates of Commodity Credit Cor-
poration purchases of milk and the products of milk
made under subsection (f)(2)) that Corporation pur-
chases of milk and the products of milk (less sales
under section 407 of the Agricultural Act of 1949
for unrestricted use) during such year shall not ex-
ceed 7,000,000,000 pounds (milk equivalent, total
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milk solids basis), less such amounts of milk equiva-
lent (total milk solids basis) exported in the form of
dairy products on which blend price payments are
made under section 3 of the Dairy Producer Market
Stabilization and Export Development Act of 1994
for that year, the reduction in price under this sub-
section will cease being made for the remainder of
the year.
‘‘(5) SPECIAL REFUNDS.—
‘‘(A) IN GENERAL.—If, at the end of any
year in which reductions in price are made
under this subsection, it is determined by the
Secretary that actual Commodity Credit Cor-
poration purchases of milk and the products of
milk (less sales under section 407 of the Agri-
cultural Act of 1949 for unrestricted use) dur-
ing that year did not exceed 7,000,000,000
pounds (milk equivalent, total milk solids basis)
less such amounts of milk equivalent (total milk
solids basis) exported in the form of dairy prod-
ucts on which blend price payments are made
under section 3 of the Dairy Producer Market
Stabilization and Export Development Act of
1994 for that year, the Secretary shall provide
refunds of all the reductions in price under this
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subsection made during such year, other than
reduction monies transferred to the Board
under an agreement made under section 5(a)(3)
of such Act. The transferred amount not sub-
ject to the special refunds shall be prorated
among all producers eligible for such refunds on
the basis of the reductions in price collected
from such producers during the year; and the
prorated amount for each producer shall be de-
ducted from the amount of refund otherwise
due to the producer under this paragraph.
‘‘(B) REFUND
NOT
DEEMED
A
GOVERN-
MENT PAYMENT.—Any refund under this para-
graph shall not be considered as any type of
price support or payment for purposes of sec-
tion 1211 or 1212 of the Food Security Act of
1985 (16 U.S.C. 3811 and 3821).’’.
SEC. 7. DAIRY PROGRAM EXTENSIONS; ESTIMATES OF CCC
PURCHASES.
(a) DAIRY PROGRAM EXTENSIONS.—
(1) IN GENERAL.—Section 204 of the Agricul-
tural Act of 1949 (7 U.S.C. 1446e) is amended by—
(A) amending the section heading to read
as follows:
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‘‘SEC. 204. MILK PRICE SUPPORT AND CERTAIN COLLEC-
TIONS 
FROM 
PRODUCERS 
IN 
CALENDAR
YEARS 1991 THROUGH 1999.’’;
(B) in subsections (a), (b), (d)(1)(A),
(d)(2)(A), (d)(3), (g)(1), and (k), striking out
‘‘1996’’ each place it appears and inserting in
lieu thereof ‘‘1999’’; and
(C) in subsection (g)(2), striking out
‘‘1996’’ and inserting in lieu thereof ‘‘1998’’.
(2) TRANSFER
TO
MILITARY
AND
VETERANS
HOSPITALS.—Subsections (a) and (b) of section 202
of the Agricultural Act of 1949 (7 U.S.C. 1446e)
are amended by striking out ‘‘1995’’ both places it
appears and inserting in lieu thereof ‘‘1999’’.
(3) FEDERAL MILK MARKETING ORDERS.—Sec-
tion 101(b) of the Agriculture and Food Act of 1981
(7 U.S.C. 603c note) is amended by striking out
‘‘1995’’ and inserting in lieu thereof ‘‘1999’’.
(4) DAIRY INDEMNITY PROGRAM.—Section 3 of
Public Law 90–484 (7 U.S.C. 450l) is amended by
striking out ‘‘1995’’ and inserting in lieu thereof
‘‘1999’’.
(5) DAIRY EXPORT INCENTIVE PROGRAM; CCC
EXPORT DAIRY SALES.—The Food Security Act of
1985 is amended by—
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(A) in section 153(a) (15 U.S.C. 713a–
14(a)), striking out ‘‘1995’’ and inserting in
lieu thereof ‘‘1999’’; and
(B) in section 1163 (7 U.S.C. 1731 note),
striking out ‘‘1995’’ each place it appears and
inserting in lieu thereof ‘‘1999’’.
(b) ESTIMATES OF CCC PURCHASES.—Subsection (f)
of section 204 of the Agricultural Act of 1949 (7 U.S.C.
1446e(f)) is amended to read as follows:
‘‘(f) ESTIMATES OF CCC PURCHASES.—
‘‘(1) IN GENERAL.—On August 1 and by No-
vember 20 of each of the calendar years 1991
through 1998, the Secretary shall notify the Com-
mittee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate regarding the value and
volume of milk and milk product purchases on a
milk equivalent, total milk solids basis, the Secretary
estimates that the Commodity Credit Corporation
will make during the upcoming calendar year, before
the effects from the operation of the national Class
IV Pool operated under section 3 of the Dairy Pro-
ducer Market Stabilization and Export Development
Act of 1994 for such year or from any reduction in
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price under subsection (g) made during such year
are calculated.
‘‘(2) REVISIONS.—The estimates of Commodity
Credit Corporation purchases made under paragraph
(1) shall be revised monthly during the year by the
Dairy Export Marketing Board established under
section 4 of the Dairy Producer Market Stabilization
and Export Development Act of 1994, in cooperation
with the Secretary.
‘‘(3) NET PURCHASES EQUIVALENT TO NET RE-
MOVALS.—As used in this section, the phrases ‘pur-
chase of milk and the products of milk’ and ‘pur-
chases of milk and the products of milk’ shall in-
clude all removals of dairy products from the domes-
tic market under this section, either by direct pur-
chase or by export under the Dairy Export Incentive
Program under section 153 of the Food Security Act
of 1985.’’.
SEC. 8. FEDERAL MILK ORDER SUPPLY BALANCING COST
SHARING PLAN.
Section 8c(5) of the Agricultural Adjustment Act (7
U.S.C. 608c(5)), reenacted with amendments by the Agri-
cultural Marketing Agreement Act of 1937, is amended
by adding at the end thereof the following new subpara-
graph:
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‘‘(M) Authorizing the market adminis-
trator to deduct and set aside an amount when
making the uniform milk price calculation each
month, to be available to the market adminis-
trator to—
‘‘(i) reimburse handlers for additional
costs incurred in obtaining supplemental
milk supplies when local supplies are insuf-
ficient for market needs;
‘‘(ii) reimburse handlers for costs in-
curred in disposing of milk that exceeds
local market needs; and
‘‘(iii) pay a distant plant that makes
a binding commitment to supply supple-
mental milk to the market when called
upon by the market administrator.’’.
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