of services provided under that section on account of the
prohibition against assessments, but shall rather cover the
cost of marketing order administration and services through
funds available for the Agricultural Marketing Service of
the Department.
(d) EFFECT ON IMPLEMENTATION SCHEDULE.—Sub-
ject to subsection (e), the requirement for additional rule-
making in subsection (b) does not modify or delay the time
period for actual implementation of the final decision re-
ferred to in subsection (a) as part of Federal milk mar-
keting orders, as such time period is specified in section
738 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act,
1999 (as contained in section 101(a) of division A of Public
Law 105–277; 112 Stat. 2681–30).
(e) MODIFIED
MANUFACTURING
ALLOWANCE
FOR
CHEESE.—Pending the implementation of new pricing for-
mulas for Class III and Class IV milk as required by sub-
section (b), the Secretary of Agriculture shall modify the
formula used for determining Class III prices, as contained
in the final decision referred to in subsection (a), to replace
the manufacturing allowance of 17.02 cents per pound of
cheese each place it appears in that formula with an
amount equal to 14.7 cents per pound of cheese.
SEC. 3. ONE-YEAR EXTENSION OF CURRENT MILK PRICE
SUPPORT PROGRAM.
(a) EXTENSION OF PROGRAM.—Subsection (h) of sec-
tion 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) DELAY IN RECOURSE LOAN PROGRAM FOR PROC-
ESSORS.—Section 142(e) of the Agricultural Market Tran-
sition Act (7 U.S.C. 7252(e)) is amended by striking
‘‘2000’’ and inserting ‘‘2001’’.
SEC. 4. DAIRY FORWARD PRICING PROGRAM.
The Agricultural Adjustment Act (7 U.S.C. 601 et
seq.), reenacted with amendments by the Agricultural Mar-
keting Agreement Act of 1937, is amended by adding at
the end the following new section:
‘‘SEC. 23. DAIRY FORWARD PRICING PROGRAM.
‘‘(a) IN GENERAL.—Not later than 90 days after the
date of enactment of this section, the Secretary of Agri-
culture shall establish a program under which milk pro-
ducers and cooperatives are authorized to voluntarily enter
into forward price contracts 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 all regulated minimum milk price requirements of
paragraphs (A), (B), (C), (D), (F), and (J) of subsection
(5), and subsections (7)(B) and (18), of section 8c.
‘‘(c) APPLICATION.—This section shall apply only with
respect to the marketing of federally regulated milk (regard-
less of its use) that is in the current of interstate or foreign
commerce or that directly burdens, obstructs, or affects
interstate or foreign commerce in federally regulated milk.’’.
Union Calendar No. 137
106TH CONGRESS
1ST SESSION
H. R. 1402
[Report No. 106–239]
A BILL
To require the Secretary of Agriculture to imple-
ment the Class I milk price structure known as
Option 1A as part of the implementation of the
final rule to consolidate Federal milk marketing
orders.
JULY 19, 1999
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed