I
106TH CONGRESS
2D SESSION
H. R. 5051
To provide direct payments to dairy producers for any month in which
the prices received by milk producers for milk for the preceding three
months is less than a target price of $12.50 per hundredweight.
IN THE HOUSE OF REPRESENTATIVES
JULY 27, 2000
Mr. KIND (for himself, Mr. OBEY, Ms. BALDWIN, Mr. HOUGHTON, Mr. SAND-
ERS, and Mr. BALDACCI) introduced the following bill; which was referred
to the Committee on Agriculture
A BILL
To provide direct payments to dairy producers for any month
in which the prices received by milk producers for milk
for the preceding three months is less than a target
price of $12.50 per hundredweight.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘National Family Farm
Dairy Equity Act of 2000’’.
SEC. 2. DIRECT PAYMENTS TO DAIRY PRODUCERS TO OFF-
SET LOW MILK PRICES.
(a) DEFINITIONS.—In this section:
(1) AVERAGE MILK PRICE.—The term ‘‘average
milk price’’ means the average price under the Fed-
eral milk marketing orders of Class III milk (or milk
used to produce cheese) and Class IV milk (or milk
used to produce butter and nonfat dry milk) for the
preceding three-month period.
(2) CLASS I MILK.—The term ‘‘Class I milk’’
means milk classified as Class I milk under a Fed-
eral milk marketing order.
(3) CLASS II MILK.—The term ‘‘Class II milk’’
means milk classified as Class II milk under a Fed-
eral milk marketing order.
(4) CLASS III MILK.—The term ‘‘Class III
milk’’ means milk classified as Class III milk under
a Federal milk marketing order.
(5) CLASS IV MILK.—The term ‘‘Class IV
milk’’ means milk classified as Class IV milk under
a Federal milk marketing order.
(6) 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.
(7) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
(8) TARGET PRICE.—The term ‘‘target price’’
means $12.50 per hundredweight for milk con-
taining 3.67 percent butterfat.
(b) PAYMENTS
REQUIRED.—The Secretary shall
make a payment under this section to producers on a farm
for any month in which the average milk price applicable
to that month is less than the target price. Producers shall
be eligible for payments regardless of whether they market
their milk within the Federal milk marketing order sys-
tem. Payments for producers operating outside the Fed-
eral order system shall be calculated to be equivalent to
payments for producers operating within the Federal
order system.
(c) AMOUNT OF PAYMENT.—Subject to subsection
(d), the amount of the payment to be made to producers
on a farm under subsection (b) for a month shall be equal
to the following:
(1) The difference between the target price and
the average Class III milk price multiplied by the
percentage of milk used as Class III milk of the
total amount of milk marketed by the producer, as
determined by the Secretary.
(2) The difference between the target price and
the average Class IV milk price multiplied by the
percentage of milk used as Class IV milk of the total
amount of milk marketed by the producer, as deter-
mined by the Secretary.
(3) The difference between the target price and
the average Class I milk mover multiplied by the
percentage of milk used as Class I milk of the total
amount of milk marketed by the producer, as deter-
mined by the Secretary.
(4) The difference between the target price and
the average Class II milk price multiplied by the
percentage of milk used as Class II milk of the total
amount of milk marketed by the producer, as deter-
mined by the Secretary.
(d) LIMITATIONS.—
(1) PAYMENT
LIMITATION.—Maximum pay-
ments under this section for a calendar year may
not exceed $50,000 per farm.
(2) QUANTITY LIMITATION.—The producers on
a farm shall be eligible for payments under this sec-
tion for a month for not more than the smaller of
the following:
(A) The producers’ average monthly pro-
duction, determined using the production dur-
ing the previous calendar year and the current
calendar year.
(B) 216,666 pounds produced monthly.
(C) Some other production base for the
farm considered appropriate by the Secretary.
(3) NEW
PRODUCERS.—In the case of pro-
ducers on a farm who do not have a production base
for the previous calender year, the quantity limita-
tion otherwise applicable under paragraph (2)(A)
shall be based on current monthly production only.
(4) TRANSFER OF PRODUCTION BASE.—There
is no restriction on the ability of the producers on
a farm to transfer the production history determined
under paragraph (2)(A) for the farm as part of the
transfer of the ownership of the farm.
(e) 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.
(f) 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.
(g) ADMINISTRATION; FUNDING SOURCE.—The Sec-
retary shall carry out this section using the funds, facili-
ties, and authorities of the Commodity Credit Corporation.
(h) PERIOD OF EFFECTIVENESS.—This section shall
be effective only during the period beginning on January
1, 2001, and ending on December 31, 2005.
(i) COMPTROLLER GENERAL REPORT.—Not later
than three years after the date of the enactment of this
Act, the Comptroller General shall submit to Congress a
report that analyzes the effect of the operation of this sec-
tion on farm income, milk production levels, milk prices,
and Government and consumer costs.
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