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manitarian relief and development organizations
in providing dairy products for emergency relief
and development programs.
‘‘(E) To develop surplus disposal opportu-
nities for use in years in which removals of sur-
plus dairy products under the Dairy Stabiliza-
tion Plans will be needed.
‘‘(5) CONTRACTS AND AGREEMENTS.—In order
to efficiently manage stock acquisition and disposi-
tion under the Dairy Stabilization Plans and to
avoid excessive overhead and unnecessary duplica-
tion in any area of the Board’s operations, the
Board shall contract or enter agreements, as author-
ized in section 204A, for the performance of any or
all of the functions described in paragraphs (1), (3),
and (4) or similar functions included in Dairy Sta-
bilization Plans and approved by the Secretary.
‘‘(6) LIMITS ON MARKET INTERVENTION.—The
Board shall ensure that any activity under a Dairy
Stabilization Plan does not interfere with normal
commercial inventory build-ups of dairy products
that are necessary to ensure adequate supplies on a
year-round basis. In this regard, the criterion the
Board shall use in planning activities under any
Plan is that intervention by the Board in the market
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should promote moderate, regulated market adjust-
ments and prevent steep or contraseasonal declines
in the prices for dairy products.’’.
SEC. 5. REVISIONS OF AUTHORITY FOR ‘‘EXCESS PUR-
CHASES’’ REDUCTIONS IN PRICE.
Effective January 1, 1994, subsection (g) of section
204 of the Agricultural Act of 1949 (7. U.S.C. 1446e)
is amended by adding at the end thereof the following:
‘‘(3) TARGETED REDUCTIONS.—
‘‘(A) IN GENERAL.—In any year in which
a reduction in price under this subsection is in
effect, if during any two consecutive months of
such year, the United States average manufac-
turing grade milk price, as reported by the Sec-
retary, does not exceed the Federal support
price for milk by more than 50 cents per hun-
dredweight, beginning the following month the
reduction in price shall cease being collected on
a uniform basis on all milk produced in the 48
contiguous States and marketed by producers
for commercial use, and shall be collected from
each milk producer in the contiguous 48 States
only on the quantity of milk marketed during
each month by the producer in excess of the
producer’s monthly base for milk marketings.
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‘‘(B) RATE OF REDUCTION.—The amount
of the reduction in the price received by produc-
ers on such over-base milk marketings shall be
an amount per hundredweight determined by
the Secretary to be sufficient, when applied to
the amount of all such over-base milk market-
ings during the remainder of the year, as esti-
mated by the Secretary, to result in total reduc-
tions during the remainder of the year equal to
the total amounts of reductions in price that
would otherwise be made on a uniform basis on
all milk marketings under the procedures pro-
vided in paragraph (2).
‘‘(C) BASES.—For purposes of determin-
ing, for each milk producer, whether the pro-
ducer is subject to the targeted reduction in
price under this paragraph, an annual base
made up of 12 monthly bases will be established
by the Secretary for each dairy farm reflecting
the farm’s milk marketings during the preced-
ing year. New milk producers will be assigned
a base equal to 75 percent of their milk market-
ings during each month of the year the reduc-
tion is in effect.