I
107TH CONGRESS
1ST SESSION
H. R. 3578
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
DECEMBER 20, 2001
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 2001’’.
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 2001’’;
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.
Æ