SEC. 5. MONITORING ACTIVITIES OF NATIONAL MILK MAR-
KETING BOARD.
(a) MONITORING ACTIVITIES.—The National Milk
Marketing Board shall continuously monitor—
(1) the relationship between the price received
by milk producers for sales of milk, the profits re-
ceived by processors of milk and milk products, and
the prices paid by consumers for milk and milk
products; and
(2) the actual need of nutrition assistance pro-
grams of the United States for milk and milk prod-
ucts.
(b) REPORTING.—Not less than twice annually, the
Board shall submit to Congress the results of its monitor-
ing activities under subsection (a).
SEC. 6. FINANCIAL ASSISTANCE FOR ENVIRONMENTAL
CONSERVATION COMPLIANCE BY MILK PRO-
DUCERS.
(a) FUNDS
FOR ENVIRONMENTAL CONSERVATION
COMPLIANCE.—To encourage environmentally sound con-
servation practices by milk producers in the 48 contiguous
States, the Secretary of Agriculture shall determine the
amount of money, on a per hundredweight of milk basis,
that would cover the cost of environmentally sound con-
servation practices by such milk producers mandated by
Federal, State, or local laws.
(b) AVAILABILITY.—To the extent funds are available
under subsection (d) to carry out this section, such funds
shall be provided to milk producers on an annual basis,
subject to Consolidated Farm Service Agency committee
approval. Amounts provided under this subsection shall be
in addition to any Federal cost share payments made to
milk producers under any other law.
(c) AMOUNT OF PAYMENTS.—State and county Con-
solidated Farm Service Agency committees shall deter-
mine which farm practices for which payments are appli-
cable to each milk producer based on the producer’s farm
plan and other factors. Payments to each milk producer
shall be based on the economic cost of obtaining and main-
taining compliance and the number of programs in which
the producer participates.
(d) DEDUCTION.—The amount of money involved
shall be considered an environmental conservation compli-
ance fee deducted from the Federal or State order pool
prior to the computation of the Federal order price. These
deductions shall be made and held in escrow by the State
Consolidated Farm Service Agency director in the State
of the producer’s residence until compliance payments are
made. In the case of nonregulated areas, provisions shall
be made for environmental conservation compliance fees
to be deducted by the State Regulatory Commission in-
volved or the State Commissioner of Agriculture.
(e) ENVIRONMENTAL CONSERVATION COMPLIANCE
PROGRAMS.—Environmental conservation compliance pro-
grams shall include at least the following:
(1) 
Manure 
management 
systems 
and
composting systems.
(2) Waste water management.
(3) Wetland conservation practices.
(4) Pesticide and herbicide alternatives.
(5) Rotational grazing.
(6) Green strips.
SEC. 7. PRODUCER EXPORT CONTRACTS.
(a) EXPORT CONTRACTS.—Any milk producer in the
48 contiguous States shall be allowed to contract directly
(or indirectly through another person) any volume of milk
in hundredweights or products of milk at a predetermined
price agreed to by all parties involved for the sole purpose
of export out of the United States.
(b) SUBMISSION OF CONTRACTS.—A milk producer
shall make copies of each export contract entered into
under this section available to—
(1) the Federal and State market administrator
involved; and
(2) the relevant committee of the Consolidated
Farm Service Agency with oversight of that produc-
er’s domestic production base.
(c) SCHEME OR DEVICE.—If the Secretary deter-
mines that a person has adopted a scheme or device that
would circumvent the isolation of export contract milk,
that person shall be ineligible to participate in any Govern-
ment programs for the following two years.
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