Dairy Pricing Deregulation Act - Amends the Agricultural Adjustment Act, reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, to revise the terms of federal milk marketing orders.
Directs the Secretary of Agriculture (USDA) to: (1) survey and publish data regarding milk handler payments for milk purchased from producers or associations of producers, and (2) publish such data on a national weighted-average basis and on a regional basis with respect to as many multi-state regions as the Secretary determines appropriate.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3372 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 3372
To amend the Agricultural Adjustment Act to deregulate the Federal milk
marketing order program, to publish competitive milk price survey data,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 4, 2011
Mr. Walsh of Illinois introduced the following bill; which was referred
to the Committee on Agriculture
_______________________________________________________________________
A BILL
To amend the Agricultural Adjustment Act to deregulate the Federal milk
marketing order program, to publish competitive milk price survey data,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Dairy Pricing Deregulation Act''.
SEC. 2. REFORM OF FEDERAL MILK MARKETING ORDERS.
(a) Terms and Conditions of Milk and Milk Products Orders.--Section
8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937, is
amended--
(1) in subsection (5)--
(A) by striking paragraphs (C), (D), (H), (I), (J),
and (K);
(B) by amending paragraph (A) to read as follows:
``(A) Fixing a differential which all handlers of
milk used for fluid purposes shall pay with respect to
such milk, and the time when payments shall be made,
for milk purchased from producers or associations of
producers. Such differential shall be uniform as to all
such handlers, subject only to adjustment for the
locations at which delivery of such milk is made to
such handlers.'';
(C) by amending paragraph (B) to read as follows:
``(B) Providing for the payment to all producers
and associations of producers delivering milk to any
fluid milk handler regulated by the order, or to any
non-fluid milk handler which supplies milk to such
fluid milk handler in conformity with such requirements
as the Secretary may establish, a proportionate share,
based on volume of delivered milk, of all differentials
required to be paid under paragraph (A) of this
subsection (5), subject only to adjustment for the
locations at which delivery of such milk is made.'';
(D) by amending paragraph (F) to read as follows:
``(F) Nothing contained in this subsection is
intended or shall be construed to prevent a cooperative
marketing association qualified under the provisions of
the Act of Congress of February 18, 1922, known as the
`Capper-Volstead Act' (7 U.S.C. 291 et seq.), engaged
in making collective sales or marketing of milk or its
products for the producers thereof, from blending the
net proceeds of all of its sales of milk or its
products in all markets, and making distribution
thereof to its producers in accordance with the
contract between the association and its producers.'';
(E) by amending paragraph (L) to read as follows:
``(L) Providing that adjustments in payments by
handlers under paragraph (A) need not be the same as
adjustments to producers under paragraph (B).'';
(F) by amending paragraph (M) to read as follows:
``(M)(i) Application of requirements.--
Notwithstanding any other provision of this section, a
milk handler described in clause (ii) shall be subject
to all of the fluid milk differential requirements of a
Federal milk marketing order issued pursuant to this
section applicable to the county in which the plant of
the handler is located, if the handler has packaged
fluid milk product route dispositions, or sales of
packaged fluid milk products to other plants, in a
marketing area located in a State that requires
handlers to pay minimum prices for raw milk purchases.
``(ii) Covered milk handlers.--Except as provided
in clause (iv), clause (i) applies to a handler of
Class I milk products (including a producer-handler or
producer operating as a handler) that--
``(I) operates a plant that is located within the
boundaries of a Federal order milk marketing area (as
those boundaries are in effect as of April 11, 2006);
``(II) has packaged fluid milk product route
dispositions, or sales of packaged fluid milk products
to other plants, in a milk marketing area located in a
State that requires handlers to pay fluid milk
differentials for raw milk purchases; and
``(III) is not otherwise obligated by a Federal
milk marketing order, or a regulated milk pricing plan
operated by a State, to pay minimum class prices or
fluid milk differentials for the raw milk that is used
for such dispositions or sales.
``(iii) Obligation to pay fluid milk
differentials.--For purposes of clause (ii)(III), the
Secretary may not consider a handler of Class I milk
products to be obligated by a Federal milk marketing
order to pay fluid milk differentials for raw milk
unless the handler operates the plant as a fully
regulated fluid milk distributing plant under a Federal
milk marketing order.
``(iv) Certain handlers exempted.--Clause (i) does
not apply to--
``(I) a handler (otherwise described in clause
(ii)) that operates a nonpool plant (as defined in
section 1000.8(e) of title 7, Code of Federal
Regulations, as in effect on the date of the enactment
of this subparagraph);
``(II) a producer-handler (otherwise described in
clause (ii)) for any month during which the producer-
handler has route dispositions, and sales to other
plants, of packaged fluid milk products equaling less
than 3,000,000 pounds of milk; or
``(III) a handler (otherwise described in clause
(ii)) for any month during which--
``(aa) less than 25 percent of the total quantity
of fluid milk products physically received at the plant
of the handler (excluding concentrated milk received
from another plant by agreement for other than Class I
use) is disposed of as route disposition or is
transferred in the form of packaged fluid milk products
to other plants; or
``(bb) less than 25 percent in aggregate of the
route disposition or transfers are in a marketing area
or areas located in one or more States that require
handlers to pay minimum prices for raw milk
purchases.''; and
(G) by amending paragraph (N) to read as follows:
``(N) Exemption for certain milk handlers.--
Notwithstanding any other provision of this section, no
handler with distribution of Class I milk products in
the marketing area described in Order No. 131 shall be
exempt during any month from any fluid milk
differential requirement established by the Secretary
under this subsection if the total distribution of
Class I products during the preceding month of any such
handler's own farm production exceeds 3,000,000
pounds.''; and
(2) by amending subsection (18) to read as follows:
``(18) Fluid milk differentials.--The Secretary of
Agriculture, in prescribing any term in any marketing agreement
or order, or amendment thereto, relating to milk or its
products, if such term is to fix the differential to be paid to
producers or associations of producers, shall fix such
differential as follows. Such differentials shall during the
first year after the effective date of the Dairy Pricing
Deregulation Act be equal to the differentials for milk used
for fluid purposes as they existed under federal milk marketing
orders on January 1, 2011, subject to all location adjustments
as they existed under federal milk marketing orders on such
date. Such differentials shall in each successive year be
reduced by an amount equal to 20 percent of the differentials
that existed during the first year after the effective date of
such Act, and shall be discontinued in the fifth year after the
effective date of such Act.''.
(b) Conforming Amendment.--Section 10(b)(2)(i) of the Agricultural
Adjustment Act (7 U.S.C. 610(b)(2)(i)), reenacted with amendments by
the Agricultural Marketing Agreement Act of 1937, is amended by
striking ``each handler subject thereto'' and inserting ``each fluid
milk handler subject thereto and each non-fluid milk handler which
supplies milk to such fluid milk handler''.
(c) Notice and Comment.--The Secretary of Agriculture shall use the
notice and comment procedures provided in section 553 of title 5,
United States Code, to implement the requirements of the amendments
made by subsection (a) of this section.
(d) Surveys.--
(1) In general.--The Secretary of Agriculture shall survey
and publish on a regular basis data regarding the payments made
by all handlers of milk used for any purpose for milk purchased
from producers or associations of producers.
(2) Bases for publication.--The Secretary shall publish
such data on a national weighted-average basis and on a
regional basis with respect to as many multi-state regions as
the Secretary determines to be of practical use.
(3) Mandatory participation.--Participation in such surveys
by handlers shall be mandatory.
SEC. 3. EFFECTIVE DATE.
The amendments made by this Act shall be effective on the first day
of the first month beginning one year after the date of the enactment
of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Agriculture.
Referred to the Subcommittee on Livestock, Dairy, and Poultry.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line