•HR 2419 EH1S 
each edition of the World Agricultural Supply 
and Demand Estimates. 
‘‘(5) PENALTY.—Any person willfully failing or 
refusing to furnish the information required to be 
reported by paragraph (1), (2), or (3), or furnishing 
willfully false information, shall be subject to a civil 
penalty of not more than $10,000 for each such vio-
lation. 
‘‘(6) MONTHLY REPORTS.—Taking into consid-
eration the information received under this sub-
section, the Secretary shall publish on a monthly 
basis composite data on production, imports, dis-
tribution, and stock levels of sugar. 
‘‘(h) SUBSTITUTION OF REFINED SUGAR.—For pur-
poses of Additional U.S. Note 6 to chapter 17 of the Har-
monized Tariff Schedule of the United States and the re-
export programs and polyhydric alcohol program adminis-
tered by the Secretary, all refined sugars (whether derived 
from sugar beets or sugarcane) produced by cane sugar 
refineries and beet sugar processors shall be fully substi-
tutable for the export of sugar and sugar-containing prod-
ucts under those programs. 
‘‘(i) EFFECTIVE PERIOD.—This section shall be ef-
fective only for the 2008 through 2012 crops of sugar 
beets and sugarcane.’’.
•HR 2419 EH1S 
(b) TRANSITION.—The Secretary of Agriculture shall 
make loans for raw cane sugar and refined beet sugar 
available for the 2007 crop year on the terms and condi-
tions provided in section 156 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7272), 
as in effect on the day before the date of the enactment 
of this Act. 
SEC. 1302. UNITED STATES MEMBERSHIP IN THE INTER-
NATIONAL SUGAR ORGANIZATION. 
The Secretary of Agriculture shall work with the Sec-
retary of State to restore United States membership in 
the International Sugar Organization within one year 
after the date of enactment of this Act. 
SEC. 
1303. 
FLEXIBLE 
MARKETING 
ALLOTMENTS 
FOR 
SUGAR. 
(a) DEFINITION OF HUMAN CONSUMPTION.—Section 
359a of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1359aa) is amended— 
(1) by redesignating paragraphs (1) through 
(4) as paragraphs (2) through (5), respectively; and 
(2) by inserting before paragraph (2), as so re-
designated, the following new paragraph (1): 
‘‘(1) 
HUMAN
CONSUMPTION.—The 
term 
‘human consumption’, when used in the context of a 
reference to sugar (whether in the form of sugar, in-
•HR 2419 EH1S 
process sugar, syrup, molasses, or in some other 
form) for human consumption, includes sugar for 
use in human food, beverages, or similar products.’’. 
(b) SUGAR ALLOTMENTS.—Section 359b of the Agri-
cultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is 
amended to read as follows: 
‘‘SEC. 359b. FLEXIBLE MARKETING ALLOTMENTS FOR 
SUGAR. 
‘‘(a) SUGAR ESTIMATES.— 
‘‘(1) IN GENERAL.—Not later than August 1 
before the beginning of each of the 2008 through 
2012 crop years for sugarcane and sugar beets, the 
Secretary shall estimate— 
‘‘(A) the quantity of sugar that will be 
subject to human consumption in the United 
States during the crop year; 
‘‘(B) the quantity of sugar that would pro-
vide for reasonable carryover stocks; 
‘‘(C) the quantity of sugar that will be 
available from carry-in stocks for human con-
sumption in the United States during the crop 
year; 
‘‘(D) the quantity of sugar that will be 
available from the domestic processing of sugar-
•HR 2419 EH1S 
cane, sugar beets, and in-process beet sugar; 
and 
‘‘(E) the quantity of sugars, syrups, and 
molasses that will be imported for human con-
sumption or to be used for the extraction of 
sugar for human consumption in the United 
States during the crop year, whether such arti-
cles are under a tariff-rate quota or are in ex-
cess or outside of a tariff-rate quota. 
‘‘(2) EXCLUSION.—The estimates under this 
subsection shall not apply to sugar imported for the 
production of polyhydric alcohol or to any sugar re-
fined and reexported in refined form or in products 
containing sugar. 
‘‘(3) REESTIMATES.—The Secretary shall make 
reestimates of sugar consumption, stocks, produc-
tion, and imports for a crop year as necessary, but 
no later than the beginning of each of the second 
through fourth quarters of the crop year. 
‘‘(b) SUGAR ALLOTMENTS.— 
‘‘(1) ESTABLISHMENT.—By the beginning of 
each crop year, the Secretary shall establish for that 
crop year appropriate allotments under section 359c 
for the marketing by processors of sugar processed 
from sugar cane or sugar beets or in-process beet
•HR 2419 EH1S 
sugar (whether such sugar beets or in-process beet 
sugar was produced domestically or imported) at a 
level sufficient to maintain raw and refined sugar 
prices above forfeiture levels so that there will be no 
forfeitures of sugar to the Commodity Credit Cor-
poration under the loan program for sugar estab-
lished under section 156 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7272). 
‘‘(2) MINIMUM.—The level of allotments estab-
lished under paragraph (1) may not be less than 85 
percent of the estimated quantity of sugar for do-
mestic human consumption for the crop year. 
‘‘(3) PRODUCTS.—The Secretary may include 
sugar products, whose majority content is sucrose, in 
the allotments established under paragraph (1) if 
the Secretary determines that the inclusion of such 
sugar products is appropriate for controlling the 
supply of sugar for human consumption. 
‘‘(c) COVERAGE OF ALLOTMENTS.— 
‘‘(1) IN GENERAL.—The marketing allotments 
provided for in this part shall apply to the mar-
keting by processors of sugar intended for domestic 
human consumption that has been processed from 
sugar cane or sugar beets or in-process beet sugar
•HR 2419 EH1S 
(whether such sugar beets or in-process beet sugar 
was produced domestically or imported). 
‘‘(2) EXCEPTIONS.—Consistent with the admin-
istration of marketing allotments during crop years 
2002 through 2007, the marketing allotments shall 
not apply to sugar sold— 
‘‘(A) to facilitate the exportation of such 
sugar to a foreign country, except that such ex-
ports of sugar shall not be eligible to receive 
credits under re-export programs for refined 
sugar or sugar containing products adminis-
tered by the Secretary; 
‘‘(B) to enable another processor to fulfill 
an allocation established for such other proc-
essor, except that such sales must be made be-
fore May 1 and must be reported to the Sec-
retary; or 
‘‘(C) for uses other than domestic human 
consumption. 
‘‘(d) PROHIBITIONS.— 
‘‘(1) IN GENERAL.—During any crop year or 
portion thereof for which marketing allotments have 
been established, no processor of sugar beets or sug-
arcane shall market for domestic human consump-
tion a quantity of sugar in excess of the allocation
•HR 2419 EH1S 
established for such processor, except to enable an-
other processor to fulfill an allocation established for 
such other processor or to facilitate the exportation 
of such sugar. 
‘‘(2) CIVIL
PENALTY.—Any processor who 
knowingly violates paragraph (1) shall be liable to 
the Commodity Credit Corporation for a civil penalty 
in an amount equal to 3 times the United States 
market value, at the time of the commission of the 
violation, of that quantity of sugar involved in the 
violation. 
‘‘(3) DEFINITION OF MARKET.—For purposes 
of this part, the term ‘market’ shall mean to sell or 
otherwise dispose of in commerce in the United 
States, including— 
‘‘(A) the forfeiture of sugar under the loan 
program for sugar under section 156 of the 
Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7272) and such forfeited 
sugar shall be deemed to have been marketed 
during the crop year in which the loan was 
made; 
‘‘(B) with respect to any integrated proc-
essor and refiner, the movement of raw cane 
sugar into the refining process; and
•HR 2419 EH1S 
‘‘(C) the sale of sugar for the production 
of ethanol or other bioenergy product, if such 
ethanol or bioenergy product is the subject of a 
payment under the feedstock flexibility program 
for bioenergy producers.’’. 
(c) ESTABLISHMENT.—Section 359c of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1359cc) is 
amended— 
(1) by striking subsection (b) and inserting the 
following new subsection: 
‘‘(b) OVERALL ALLOTMENT QUANTITY.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish the overall quantity of sugar to be allotted for 
the crop year (in this part referred to as the ‘overall 
allotment quantity’) at a level sufficient to maintain 
raw and refined sugar prices above forfeiture levels 
to avoid the forfeiture of sugar to the Commodity 
Credit Corporation. 
‘‘(2) MINIMUM.—The overall allotment quantity 
established under paragraph (1) may not be less 
than 85 percent of the estimated quantity of sugar 
for domestic human consumption for the crop year. 
‘‘(3) ADJUSTMENT.—Subject to paragraphs (1) 
and (2), the Secretary shall adjust the overall allot-
ment quantity—
•HR 2419 EH1S 
‘‘(A) to maintain raw and refined sugar 
prices above forfeiture levels to avoid the for-
feiture of sugar to the Commodity Credit Cor-
poration; and 
‘‘(B) to maintain adequate supplies of raw 
and refined sugar in the domestic market.’’; 
(2) in subsection (d)(2), by inserting before the 
period the following: ‘‘or in-process beet sugar’’; 
(3) in subsection (g)(1), by inserting at the end 
the following new sentence: ‘‘However, the overall al-
lotment quantity may not be reduced to a quantity 
less than 85 percent of the estimated quantity of 
sugar for domestic human consumption for the crop 
year.’’; and 
(4) by striking subsection (h). 
(d) ALLOCATION OF MARKETING ALLOTMENTS.— 
Section 359d(b) of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1359dd(b)) is amended— 
(1) in paragraph (1)(F), by striking ‘‘Except as 
otherwise provided in section 359f(c)(8), if’’ and in-
serting ‘‘If’’; and 
(2) in paragraph (2), by striking subparagraphs 
(H) and (I) and inserting the following new subpara-
graph:
•HR 2419 EH1S 
‘‘(H) NEW ENTRANTS STARTING PRODUC-
TION, REOPENING, OR ACQUIRING AN EXISTING 
FACTORY WITH PRODUCTION HISTORY.— 
‘‘(i) ALLOCATION
FOR
A
NEW
EN-
TRANT THAT HAS CONSTRUCTED A NEW 
FACTORY OR REOPENED A FACTORY THAT 
WAS
NOT
OPERATING
SINCE
BEFORE 
1998.—If a New Entrant constructs a new 
sugar beet processing factory, or acquires 
and reopens a sugar beet processing fac-
tory that last processed sugar beets prior 
to the 1998 crop year and there is no allo-
cation currently associated with the fac-
tory, the Secretary shall— 
‘‘(I) assign an allocation for beet 
sugar to the New Entrant that pro-
vides a fair and equitable distribution 
of the allocations for beet sugar in 
order to enable the New Entrant to 
achieve a factory utilization rate com-
parable to the factory utilization rates 
of other similarly situated processors; 
and 
‘‘(II) reduce the allocations for 
beet sugar of all other processors on
•HR 2419 EH1S 
a pro rata basis to reflect the alloca-
tion to the New Entrant. 
‘‘(ii) ALLOCATION
FOR
A
NEW
EN-
TRANT THAT HAS ACQUIRED AN EXISTING 
FACTORY WITH A PRODUCTION HISTORY.— 
If a New Entrant acquires an existing fac-
tory that has processed sugar beets from 
the 1998 or later crop years and has a 
production history, then, upon the mutual 
agreement of the New Entrant and the 
company currently holding the allocation 
associated with the factory, the Secretary 
shall transfer to the New Entrant a por-
tion of allocation of the current allocation 
holder to reflect the historical contribution 
of the production of the acquired factory to 
the total allocation of the current alloca-
tion holder. In the absence of mutual 
agreement, the new entrant shall be ineli-
gible for a beet sugar allocation. 
‘‘(iii) APPEALS.—Any decision made 
under this subsection may be appealed to 
the Secretary pursuant to section 359i. 
‘‘(iv) DEFINITION.—In this subpara-
graph, the term ‘New Entrant’ means an
•HR 2419 EH1S 
individual, corporation, or other entity that 
does not have an allocation of the beet 
sugar allotment under this part, is not af-
filiated with any other individual, corpora-
tion, or entity that has an allocation of 
beet sugar under this part (known as a 
‘third party’), and will process sugar beets 
produced by sugar beet growers under con-
tract with the New Entrant for the produc-
tion of sugar at the new or re-opened fac-
tory that is the basis for the New Entrant 
allocation. 
‘‘(v) AFFILIATION.—For purposes of 
this subparagraph, a New Entrant and a 
third party shall be deemed to be ‘affili-
ated’ if— 
‘‘(I) the third party has an own-
ership interest in the New Entrant; 
‘‘(II) the New Entrant and the 
third party have owners in common; 
‘‘(III) the third party has the 
ability to exercise control over the 
New Entrant by organizational rights, 
contractual 
rights, 
or 
any 
other 
means;
•HR 2419 EH1S 
‘‘(IV) the third party has a con-
tractual relationship with the New 
Entrant by which the New Entrant 
will make use of the facilities or assets 
of such third party; or 
‘‘(V) 
any 
other 
similar 
cir-
cumstance exists by which the Sec-
retary determines that the New En-
trant and the third party are affili-
ated.’’. 
(e) REASSIGNMENT OF DEFICITS.—Section 359e(b) 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359ee(b)) is amended in both paragraphs (1)(D) and 
(2)(C) by inserting ‘‘of raw cane sugar’’ after ‘‘imports’’. 
(f) PROVISIONS APPLICABLE TO PRODUCERS.—Sec-
tion 359f(c) of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1359ff(c)) is amended— 
(1) in paragraph (2), by striking ‘‘quantity of 
sugarcane’’ and inserting ‘‘quantity of sugar pro-
duced from sugarcane’’; 
(2) in paragraph (5)(C), by inserting ‘‘for 
sugar’’ before ‘‘in excess of the farm’s proportionate 
share’’;
•HR 2419 EH1S 
(3) in paragraph (7), by striking ‘‘amount of 
sugarcane’’ and inserting ‘‘amount of sugar from 
sugarcane’’; and 
(4) by striking paragraph (8) and inserting the 
following new paragraph: 
‘‘(8) SEED
DEFINITION.—In this subsection, 
the term ‘seed’ includes only varieties of seed dedi-
cated to the production of sugarcane from which is 
produced sugar for human consumption, and ex-
cludes seed of high-fiber cane varieties dedicated to 
other uses, as determined by the Secretary.’’. 
(g) SPECIAL RULES.—Section 359g of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1359gg) is 
amended— 
(1) by striking subsection (a) and inserting the 
following new subsection: 
‘‘(a) TRANSFER OF ACREAGE BASE HISTORY.— 
‘‘(1) TRANSFER
AUTHORIZED.—For the pur-
pose of establishing proportionate shares for sugar-
cane farms under section 359f(c), the Secretary, on 
application of any producer, with the written consent 
of all owners of a farm, may transfer the acreage 
base history of the farm to any other parcels of land 
of the applicant. 
‘‘(2) CONVERTED ACREAGE BASE.—
100 
•HR 2419 EH1S 
‘‘(A) IN GENERAL.—Sugarcane base acre-
age established under section 359f(c) that has 
been or is converted to non-agricultural use on 
or after May 13, 2002, may be transferred to 
other land suitable for the production of sugar-
cane that can be delivered to a processor in a 
proportionate share State in accordance with 
this paragraph. 
‘‘(B) NOTIFICATION.—Not later than 90 
days after the date of the enactment of the 
Farm, Nutrition, and Bioenergy Act of 2007, 
or the subsequent conversion of sugarcane base 
acreage to a non-agricultural use, the Sec-
retary, acting through the Farm Service Agen-
cy, shall notify the affected landowner (or land-
owners) of the transferability of the applicable 
sugarcane base acreage. 
‘‘(C) INITIAL
TRANSFER
PERIOD.—The 
owner of the base attributable to the acreage at 
the time of the conversion shall be afforded 90 
days from the date of the receipt of the notifi-
cation under subparagraph (B) to transfer the 
base to one or more farms owned by the owner. 
‘‘(D) GROWER OF RECORD.—If the trans-
fer under subparagraph (C) cannot be accom-
101 
•HR 2419 EH1S 
plished within the time period prescribed in 
such subparagraph, then the grower of record 
with regard to the base acreage on the date on 
which the acreage was converted to non-agricul-
tural use shall be so notified, and shall be af-
forded 90 days from the date of the receipt of 
such notification to transfer the base to one or 
more farms operated by the grower. 
‘‘(E) POOL DISTRIBUTION.—If the trans-
fers under subparagraphs (B) and (C) cannot 
be accomplished within the time periods pre-
scribed therein, then the county committee for 
the applicable parish shall place the acreage 
base in a pool for possible assignment to other 
farms. After providing reasonable notice to 
farm owners, operators, and growers of record 
in the parish, the county committee shall accept 
requests from owners, operators, and growers of 
record in the parish. The county committee 
shall assign the base to other farms in the par-
ish that are eligible and capable of accepting 
such base, based on a random drawing from 
among the requests received from owners, oper-
ators, and growers of record with eligible farms.
102 
•HR 2419 EH1S 
‘‘(F) STATEWIDE
REALLOCATION.—Any 
base remaining unassigned after the processes 
in subparagraphs (A) through (E) shall be 
made available to the State committee for allo-
cation among the remaining county committees 
in the State representing parishes with farms 
eligible for assignment of the base. The remain-
ing base shall be reallocated to requesting coun-
ty committees based on a random drawing. Any 
county committee receiving base under this sub-
paragraph shall allocate the base to eligible 
farms using the process described in subpara-
graph (E). 
‘‘(G) STATUS
OF
REASSIGNED
BASE.— 
Once reassigned pursuant to this paragraph, 
the acreage base shall remain on the farm, and 
will be subject to the transfer provisions of 
paragraph (1).’’; 
(2) by striking subsection (d) and inserting the 
following new subsection: 
‘‘(d) TRANSFERS OF MILL ALLOCATIONS.— 
‘‘(1) TRANSFER AUTHORIZED.—A producer in a 
proportionate share State, upon written consent 
from all affected crop-share owners (or the rep-
resentative of the crop-share owners) of a farm may
103 
•HR 2419 EH1S 
deliver sugarcane to another processing company if 
the additional delivery, when combined with such 
other processing company’s existing deliveries, does 
not exceed the processing capacity of the company. 
‘‘(2) 
ALLOCATION
ADJUSTMENT.—Notwith-
standing section 359d, the Secretary shall adjust the 
allocations of each of such processing companies af-
fected by a transfer under paragraph (1) to reflect 
the change in deliveries, based on— 
‘‘(A) the number of acres of sugarcane 
base being transferred; and 
‘‘(B) the pro-rata amount of allocation at 
the processing company holding the applicable 
allocation that equals the grower’s contribution 
to the processing company’s allocation for the 
sugarcane base acres being transferred.’’. 
(h) APPEALS.—Section 359i of the Agricultural Ad-
justment Act of 1938 (7 U.S.C. 1359ii) is amended— 
(1) in subsection (a), by inserting ‘‘or 359g(d)’’ 
after ‘‘359f’’; and 
(2) by striking subsection (c). 
(i) ADMINISTRATION OF TARIFF RATE QUOTAS.— 
The Agricultural Adjustment Act of 1938 is amended by 
striking section 359k (7 U.S.C. 1359kk) and inserting the 
following new section:
104 
•HR 2419 EH1S 
‘‘SEC. 359k. ADMINISTRATION OF TARIFF RATE QUOTAS. 
‘‘(a) ESTABLISHMENT.—Notwithstanding any other 
provision of law, at the beginning of the quota year, the 
Secretary shall establish the tariff-rate quotas for raw 
cane sugar and refined sugars at the minimum necessary 
to comply with obligations under international trade 
agreements that have been approved by the Congress. This 
subsection shall not apply to specialty sugar. 
‘‘(b) ADJUSTMENT.— 
‘‘(1) BEFORE APRIL 1.— 
‘‘(A) INITIAL
ADJUSTMENT
REQUIRED.— 
Before April 1 of a fiscal year, in the event that 
there is an emergency shortage of sugar in the 
United States market that is caused by war, 
floods, hurricanes, or other natural disaster, or 
other similar event, the Secretary shall take ac-
tion to increase supply as provided under sec-
tions 359c(b)(2) and 359e(b), including an in-
crease in the tariff-rate quota for raw cane 
sugar to accommodate the reassignment to im-
ports. 
‘‘(B) ADDITIONAL ADJUSTMENT.—If, after 
adjustment under subparagraph (A), there is 
still a shortage of sugar in the United States 
market, and marketings of domestic sugar have 
been maximized, the Secretary may increase the
105 
•HR 2419 EH1S 
tariff-rate quota for refined sugars sufficient to 
accommodate the supply increase, if such fur-
ther increase will not threaten to result in the 
forfeiture of sugar pledged as collateral for a 
loan under section 156 of the Federal Agri-
culture Improvement and Reform Act of 1996 
(7 U.S.C. 7272). 
‘‘(2) ON OR AFTER APRIL 1.— 
‘‘(A) 
INITIAL
ADJUSTMENT
AUTHOR-
IZED.—On or after April 1 of a fiscal year, the 
Secretary may take action to increase supply as 
provided 
under 
sections 
359c(b)(2) 
and 
359e(b), including an increase in the tariff-rate 
quota for raw cane sugar to accommodate the 
reassignment to imports. 
‘‘(B) ADDITIONAL ADJUSTMENT.—If, after 
adjustment under subparagraph (A), there is 
still a shortage of sugar in the United States 
market, and marketings of domestic sugar have 
been maximized, the Secretary may increase the 
tariff-rate quota for raw cane sugar if such fur-
ther increase will not threaten to result in the 
forfeiture of sugar pledged as collateral for a 
loan under section 156 of the Federal Agri-
106 
•HR 2419 EH1S 
culture Improvement and Reform Act of 1996 
(7 U.S.C. 7272). 
‘‘(c) ORDERLY SHIPPING PATTERNS
FOR MAJOR 
SUPPLIERS.— 
‘‘(1) IN
GENERAL.—The Secretary of Agri-
culture shall establish orderly shipping patterns for 
major suppliers of sugar to the United States under 
the tariff rate quotas in accordance with this sub-
section. 
‘‘(2) VERY
LARGE
MAJOR
SUPPLIERS.—If a 
country holds quota allocations of at least 100,000 
metric tons of sugar, the Secretary shall allow the 
country to export up to 25 percent of the country’s 
quota allocation to the United States in each cal-
endar quarter. Sugar permitted to enter into the 
United States in a calendar quarter, but not actually 
entered in that quarter, may be entered into the 
United States at any time during the remainder of 
the fiscal year. 
‘‘(3) LARGE MAJOR SUPPLIERS.—For countries 
holding quota allocations of more than 45,000 met-
ric tons of sugar, but less than 100,000 metric tons 
of sugar, the Secretary shall require that the coun-
try may ship not more than 50 percent of the coun-
107 
•HR 2419 EH1S 
try’s quota sugar to the United States in the first 
six months of the year.’’. 
(j) EFFECTIVE DATE.—The Agricultural Adjustment 
Act of 1938 is amended by inserting after section 359k 
(7 U.S.C. 1359kk) the following new section: 
‘‘SEC. 359l. EFFECTIVE PERIOD. 
‘‘This part shall be effective only for the 2008 
through 2012 crop years for sugar.’’. 
(k) TRANSITION.—The Secretary of Agriculture shall 
administer flexible marketing allotments for sugar for the 
2007 crop year for sugar on the terms and conditions pro-
vided in part VII of title III of the Agricultural Adjust-
ment Act of 1938, as in effect on the day before the date 
of the enactment of this Act. 
Subtitle D—Dairy-Related 
Provisions 
SEC. 1401. DAIRY PRODUCT PRICE SUPPORT PROGRAM. 
(a) SUPPORT ACTIVITIES.—During the period begin-
ning on January 1, 2008, through December 31, 2012, 
the Secretary of Agriculture shall support the price of 
cheddar cheese, butter, and nonfat dry milk through the 
purchase of such products made from milk produced in 
the United States.
108 
•HR 2419 EH1S 
(b) PURCHASE PRICE.—To carry out subsection (a) 
during the period specified in such subsection, the Sec-
retary shall purchase— 
(1) cheddar cheese in blocks at not less than 
$1.13 per pound; 
(2) cheddar cheese in barrels at not less than 
$1.10 per pound; 
(3) butter at not less than $1.05 per pound; 
and 
(4) nonfat dry milk at not less than $0.80 per 
pound. 
(c) TEMPORARY PRICE ADJUSTMENT TO AVOID EX-
CESS INVENTORIES.— 
(1) ADJUSTMENTS
AUTHORIZED.—The Sec-
retary may adjust the minimum purchase prices es-
tablished under subsection (b) only as permitted 
under this subsection. 
(2) CHEESE INVENTORIES IN EXCESS OF 200 
MILLION POUNDS.—If net removals for a period of 
12 consecutive months exceed 200 million pounds of 
cheese, but do not exceed 400 million pounds, the 
Secretary may reduce the purchase prices under 
paragraphs (1) and (2) of subsection (b) during the 
immediately following month by not more than 10 
cents per pound.
109 
•HR 2419 EH1S 
(3) CHEESE INVENTORIES IN EXCESS OF 400 
MILLION POUNDS.—If net removals for a period of 
12 consecutive months exceed 400 million pounds of 
cheese, the Secretary may reduce the purchase 
prices under paragraphs (1) and (2) of subsection 
(b) during the immediately following month by not 
more than 20 cents per pound. 
(4) BUTTER INVENTORIES IN EXCESS OF 450 
MILLION POUNDS.—If net removals for a period of 
12 consecutive months exceed 450 million pounds of 
butter, but do not exceed 650 million pounds, the 
Secretary may reduce the purchase price under sub-
section (b)(3) during the immediately following 
month by not more than 10 cents per pound. 
(5) BUTTER INVENTORIES IN EXCESS OF 650 
MILLION POUNDS.—If net removals for a period of 
12 consecutive months exceed 650 million pounds of 
butter, the Secretary may reduce the purchase price 
under subsection (b)(3) during the immediately fol-
lowing month by not more than 20 cents per pound. 
(6) NONFAT DRY MILK INVENTORIES IN EX-
CESS OF 600 MILLION POUNDS.—If net removals for 
a period of 12 consecutive months exceed 600 mil-
lion pounds of nonfat dry milk, but do not exceed 
800 million pounds, the Secretary may reduce the
110 
•HR 2419 EH1S 
purchase price under subsection (b)(4) during the 
immediately following month by not more than 5 
cents per pound. 
(7) NONFAT DRY MILK INVENTORIES IN EX-
CESS OF 800 MILLION POUNDS.—If net removals for 
a period of 12 consecutive months exceed 800 mil-
lion pounds of nonfat dry milk, the Secretary may 
reduce the purchase price under subsection (b)(4) 
during the immediately following month by not more 
than 10 cents per pound. 
(d) UNIFORM PURCHASE PRICE.—The prices that 
the Secretary pays for cheese, butter, or nonfat dry milk, 
respectively, under subsection (a) shall be uniform for all 
regions of the United States. 
(e) SALES FROM INVENTORIES.—In the case of each 
commodity specified in subsection (b) that is available for 
unrestricted use in inventories of the Commodity Credit 
Corporation, the Secretary may sell the commodity at the 
market prices prevailing for that commodity at the time 
of sale, except that the sale price may not be less than 
110 percent of the minimum purchase price specified in 
subsection (b) for that commodity. 
(f) NET REMOVALS DEFINED.—In this section, the 
term ‘‘net removals’’ means—
111 
•HR 2419 EH1S 
(1) the sum of the quantity of a product de-
scribed in subsection (a) purchased by the Com-
modity Credit Corporation under this section and 
the quantity of such product exported under section 
153 of the Food Security Act of 1985 (15 U.S.C. 
713a–14); less 
(2) the amount of such product sold for unre-
stricted use by the Commodity Credit Corporation. 
(g) COMMODITY CREDIT CORPORATION.—The Sec-
retary shall use the funds of the Commodity Credit Cor-
poration to carry out this section. 
SEC. 1402. DAIRY FORWARD PRICING PROGRAM. 
(a) PROGRAM REQUIRED.—The Secretary of Agri-
culture shall establish a program under which milk pro-
ducers and cooperative associations of producers are au-
thorized 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 coop-
erative associations of producers, and prices received by 
milk producers and cooperative associations, in accordance 
with the terms of a forward price contract authorized by 
subsection (a), shall be deemed to satisfy— 
(1) all uniform and minimum milk price re-
quirements of paragraphs (B) and (F) of subsection