I
106TH CONGRESS
2D SESSION
H. R. 5052
To ensure that milk producers in the United States receive a fair price
for milk marketed for domestic consumption based on the cost of produc-
tion and other appropriate marketing factors and to establish a National
Milk Pricing Board consisting of industry and farmer representatives
to assist the Secretary of Agriculture in determining production costs
and milk prices.
IN THE HOUSE OF REPRESENTATIVES
JULY 27, 2000
Mr. KLINK (for himself, Mr. HOLDEN, Mr. LATOURETTE, Mr. KANJORSKI,
Mr. DOYLE, Mr. HINCHEY, Mr. BALDACCI, and Mr. MURTHA) introduced
the following bill; which was referred to the Committee on Agriculture
A BILL
To ensure that milk producers in the United States receive
a fair price for milk marketed for domestic consumption
based on the cost of production and other appropriate
marketing factors and to establish a National Milk Pric-
ing Board consisting of industry and farmer representa-
tives to assist the Secretary of Agriculture in determining
production costs and milk prices.
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 ‘‘Fairness for Dairy
Farmers Act of 2000’’.
SEC. 2. BASE PRICE FOR MILK TO REFLECT COST OF PRO-
DUCTION.
(a) COST BASIS FOR BASE PRICE.—Notwithstanding
any other provision of law, the Secretary of Agriculture
shall require milk handlers that are subject to a Federal
or State milk marketing order or that are otherwise en-
gaged in the business of receiving fluid milk for processing
and distribution to retail or wholesale outlets to pay milk
producers a base price for milk marketed for domestic con-
sumption that reflects the producers’ costs of production
as well as other appropriate marketing factors.
(b) DETERMINATION OF COST OF PRODUCTION.—(1)
Not less than quarterly, the Secretary shall determine the
cost of milk production in—
(A) every Federal milk marketing order area;
(B) every State milk marketing order area out-
side of the Federal milk marketing order system;
and
(C) every other area in the United States in
which milk is produced, but that is not included in
a Federal or State milk marketing order.
(2) In determining the cost of milk production under
paragraph (1) in an area, the Secretary shall take into
consideration the latest cash cost of milk production, as
estimated by the Secretary, in that area.
SEC. 3. ESTIMATION OF ANNUAL MILK PRODUCTION AND
DOMESTIC CONSUMPTION LEVELS.
(a) ANNUAL ESTIMATE.—On an annual basis, the
Secretary of Agriculture shall estimate—
(1) the quantity of milk to be produced in the
United States and marketed for commercial use milk
during the next 12 months; and
(2) the quantity of milk necessary to satisfy do-
mestic consumption, including Government nutrition
assistance programs, during the next 12 months.
(b) RULES FOR ESTIMATE.—When making an esti-
mate under this section, the Secretary shall—
(1) consider any existing inventory management
programs to balance domestic supply and demand;
and
(2) consider import projections of all dairy
products.
SEC. 4. NATIONAL MILK PRICING BOARD.
(a) APPOINTMENT OF BOARD.—The Secretary of Ag-
riculture shall appoint a National Milk Pricing Board to
carry out the duties specified in subsection (c).
(b) MEMBERSHIP.—The Board shall consist of the
following:
(1) At least one milk producer from each Fed-
eral milk marketing order area and from each State
with separate State milk marketing order areas.
(2) A lesser number of persons appointed by
the Secretary from among individuals who have a
demonstrable expertise in the dairy industry, includ-
ing at least one consumer advocate.
(c) DUTIES OF THE BOARD.—The Board shall assist
the Secretary—
(1) in establishing the base price (either region-
ally or nationally) for milk under section 2;
(2) in determining cost of production for an
area under section 2;
(3) in determining the quantity of milk needed
for domestic consumption, as required by section 3;
and
(4) in carrying out the supply management au-
thority provided in section 5.
SEC. 5. SUPPLY MANAGEMENT AUTHORITY.
(a) LIMITS ON AVAILABILITY OF BASE PRICE.—A
milk producer shall be eligible to receive the base price
established under section 2 only on the greater of—
(1) the percentage of the producer’s previous
year’s production corresponding to that producer’s
share of the quantity of milk estimated under sec-
tion 3(a)(2) as necessary to satisfy domestic con-
sumption, as determined by the Board; or
(2) 216,666 pounds of milk per month.
(b) TREATMENT OF MILK PRODUCED IN EXCESS OF
DOMESTIC NEEDS.—The Board shall oversee the pur-
chase of excess milk by the Commodity Credit Corporation
at the world market price. The excess milk shall be made
available for use in domestic and international nutrition
assistance programs.
SEC. 6. REPORT REQUIREMENTS.
(a) DAIRY PRODUCT STOCKS.—The Secretary of Ag-
riculture shall prepare a national monthly report of Gov-
ernment and commercial stocks of dairy products.
(b) DOMESTIC PRODUCTION
AND IMPORTS.—The
Secretary of Agriculture shall prepare an annual report
of United States milk production and milk product im-
ports. In the case of milk product imports, the Secretary
shall identify the county of origin for the imports and
evaluate the impact diary imports (particularly imports of
ultrafiltered milk) have on United States milk producers.
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