I
106TH CONGRESS
2D SESSION
H. R. 5649
To require the Secretary of Agriculture to make emergency market loss
payments to dairy producers for any month in which the national average
price for Class III milk under Federal milk marketing orders is less
than a target price of $11.50 per hundredweight.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 8, 2000
Mr. OBEY (for himself, Mr. KIND, and Ms. BALDWIN) introduced the
following bill; which was referred to the Committee on Agriculture
A BILL
To require the Secretary of Agriculture to make emergency
market loss payments to dairy producers for any month
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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. EMERGENCY MARKET LOSS PAYMENTS TO
DAIRY PRODUCERS IN RESPONSE TO LOW
CLASS III MILK PRICES.
(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 under
a Federal milk marketing 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 whenever the national average
price for Class III milk under Federal milk marketing or-
ders for a month 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.—The amount of the
payment made under subsection (b) to dairy pro-
ducers on a farm covered by a Federal milk mar-
keting order region for a month shall be based on
the Class III milk utilization rates within the order.
In the case of payments to dairy producers on a
farm outside of the Federal milk marketing order
system, the Secretary shall determine the utilization
rate for milk used for cheese production for the
State in which the farm is located. Payments shall
make up the difference between the average Class
III price for the month and the target price specified
in subsection (b).
(2) PAYMENT
LIMITATION.—Notwithstanding
paragraph (1), producers on a farm may not receive
payments under this section for more than 216,666
pounds of milk produced on that farm during a
month.
(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 the month.
(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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