S 1682 ISCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 1682CommentsClose CommentsPermalink

To amend the Food, Conservation, and Energy Act of 2008 to promote growth and opportunity for the dairy industry in the United States, and for other purposes.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

October 12, 2011CommentsClose CommentsPermalink

Mr. CASEY introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and ForestryCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Food, Conservation, and Energy Act of 2008 to promote growth and opportunity for the dairy industry in the United States, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Dairy Advancement Act of 2011’.CommentsClose CommentsPermalink

SEC. 2. REPEAL OF DAIRY PRODUCT PRICE SUPPORT PROGRAM.

Section 1501 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8771) is repealed.CommentsClose CommentsPermalink

SEC. 3. LIVESTOCK GROSS MARGIN INSURANCE FOR DAIRY.

Subtitle E of title I of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8771 et seq.) is amended by adding at the end the following:CommentsClose CommentsPermalink

‘SEC. 1511. LIVESTOCK GROSS MARGIN INSURANCE FOR DAIRY.

‘(a) In General- As an alternative to receiving milk income loss contract program payments under section 1506, the Secretary shall give the producers on a dairy farm an opportunity to make an irrevocable election to instead receive livestock gross margin insurance for dairy and receive a subsidy from the Secretary for an insurance policy that provides the producers on the dairy farm protection against the loss of gross margin (the market value of milk minus feed costs) for specified portions of milk produced by dairy cows of the producers, for the initial month for which the election is made through September 30, 2012.CommentsClose CommentsPermalink





‘(b) Subsidy-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Except as provided in paragraph (2), the Secretary shall provide to the dairy producers on a farm under this section a subsidy at the $1.50-deductible level for not more than 3,000,000 pounds of milk for each year.CommentsClose CommentsPermalink





‘(2) PRODUCER OPTIONS- The producers on a dairy farm may, at the expense of the producers, reduce the deductible level or increase the quantity of covered pounds for a subsidy provided under this section.’.CommentsClose CommentsPermalink

SEC. 4. FEDERAL MILK MARKETING ORDERS.

(a) 2-Class System for Classifying Milk-CommentsClose CommentsPermalink





(1) IN GENERAL- Not later than September 30, 2014, the Secretary of Agriculture shall establish a 2-class system for classifying milk under Federal milk marketing orders issued under section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, consisting of a fluid milk class and a manufacturing milk class (with the price for both classes determined using the component prices of butterfat, protein, and other solids).CommentsClose CommentsPermalink





(2) AMENDMENT TO ORDERS-CommentsClose CommentsPermalink





(A) IN GENERAL- The Secretary shall submit a report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that includes the text of proposed amendments to the Federal milk marketing orders to implement the 2-class system for classifying milk.CommentsClose CommentsPermalink





(B) EFFECTIVE DATE- The proposed amendments described in subparagraph (A) shall take effect not earlier than the date that is 180 days after the date on which the report is submitted under that subparagraph.CommentsClose CommentsPermalink





(b) Deadline for Issuance of Orders- Section 8c(4) of the Agricultural Adjustment Act (7 U.S.C. 608c(4)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by striking ‘After’ and inserting ‘Not later than 30 days after’.CommentsClose CommentsPermalink





(c) Economic Impact Assessment- The Secretary of Agriculture shall--CommentsClose CommentsPermalink





(1) carry out a review of the milk-feed margin during the 1-year period ending on the date of enactment of this Act; andCommentsClose CommentsPermalink





(2) not later than September 30, 2013, and each time a proposed change in the Federal milk marketing order formulas is considered by the Secretary--CommentsClose CommentsPermalink





(A) assess the economic impact, over a 1- and 2-year period, of proposed changes in Federal milk marketing order formulas on--CommentsClose CommentsPermalink





(i) milk supply;CommentsClose CommentsPermalink





(ii) farm profitability;CommentsClose CommentsPermalink





(iii) consumer demand; andCommentsClose CommentsPermalink





(iv) market prices;CommentsClose CommentsPermalink





(B) submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the assessment; andCommentsClose CommentsPermalink





(C) consider, and include in the record, the results of the assessment before making a decision on any proposed change to the Federal milk marketing order formulas.CommentsClose CommentsPermalink

SEC. 5. DAIRY PROCESSING EQUIPMENT LOAN GUARANTEE FUND.

(a) Loans- Section 310B(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(a)) is amended--CommentsClose CommentsPermalink





(1) by striking the section heading and inserting the following:CommentsClose CommentsPermalink

‘SEC. 310B. RURAL INDUSTRIALIZATION ASSISTANCE.’;

andCommentsClose CommentsPermalink





(2) in paragraph (2)--CommentsClose CommentsPermalink





(A) in subparagraph (C), by striking ‘and’ after the semicolon;CommentsClose CommentsPermalink





(B) in subparagraph (D)--CommentsClose CommentsPermalink





(i) by striking ‘to facilitate’ and inserting ‘facilitating’; andCommentsClose CommentsPermalink





(ii) by striking the period at the end and inserting ‘; and’; andCommentsClose CommentsPermalink





(C) by adding at the end the following:CommentsClose CommentsPermalink





‘(E) providing processors of dairy products with incentives for investing in new equipment and technologies by using not more than $15,000,000 each fiscal year to--CommentsClose CommentsPermalink





‘(i) make loans to dairy processors and cooperatives to cover not more than 50 percent of the cost of acquisition and adoption of new equipment, equipment upgrades, and new technologies--CommentsClose CommentsPermalink





‘(I) at a fixed rate of interest not to exceed the prime lending rate plus 1 percent; andCommentsClose CommentsPermalink





‘(II) with a term of not to exceed 15 years; andCommentsClose CommentsPermalink





‘(ii) guarantee loans made to dairy processors and cooperatives for the acquisition and adoption of new dairy equipment, equipment upgrades, and new technologies, at a guarantee rate of not more than 90 percent.’.CommentsClose CommentsPermalink





(b) Lending Power for Dairy Processing Cooperatives- Section 3.7 of the Farm Credit Act of 1971 (12 U.S.C. 2128) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(g) Dairy Processing Cooperatives-CommentsClose CommentsPermalink





‘(1) IN GENERAL- A bank for cooperatives may use not more than $15,000,000 each fiscal year to provide dairy processing cooperatives with working capital lines of credit and accounts receivable financing for the purpose of accessing export marketing opportunities for milk and milk products.CommentsClose CommentsPermalink





‘(2) LIMITATIONS- Financing provided by a bank for cooperatives for a project under paragraph (1) may not exceed the lesser of--CommentsClose CommentsPermalink





‘(A) $1,000,000; orCommentsClose CommentsPermalink





‘(B) 75 percent of the costs of carrying out the project.CommentsClose CommentsPermalink





‘(3) TERM-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Except as provided in subparagraph (B), the term of a line of credit described in paragraph (1) shall not exceed 2 years.CommentsClose CommentsPermalink





‘(B) REVOLVING LINES OF CREDIT- A revolving line of credit may be used for multiple transactions.CommentsClose CommentsPermalink





‘(4) DUE DATE- An accounts receivable financing loan under this subsection shall be due on the earlier of--CommentsClose CommentsPermalink





‘(A) the date on which the receivable is paid; orCommentsClose CommentsPermalink





‘(B) 180 days after the date of disbursement.CommentsClose CommentsPermalink





‘(5) USE OF FINANCING-CommentsClose CommentsPermalink





‘(A) WORKING CAPITAL LINE OF CREDIT FINANCING- Working capital line of credit financing under this subsection may be used--CommentsClose CommentsPermalink





‘(i) to acquire inventory for the production of milk products;CommentsClose CommentsPermalink





‘(ii) to pay direct and indirect costs (such as design, engineering, labor, and overhead costs) used for--CommentsClose CommentsPermalink





‘(I) the manufacture or purchase of goods, including work-in-process, for the production of milk products; orCommentsClose CommentsPermalink





‘(II) the provision of services for the production of milk products; orCommentsClose CommentsPermalink





‘(iii) to support standby letters of credit used as bid bonds, performance bonds, or payment guarantees.CommentsClose CommentsPermalink





‘(B) ACCOUNTS RECEIVABLE FINANCING- Accounts receivable financing under this subsection may be used to finance export accounts receivables for milk and milk products sold on payment terms of not more than 180 days after the date of arrival at the port of importation, if the finance export accounts receivable have been insured by the Commodity Credit Corporation or other guarantor approved by the Secretary.’.CommentsClose CommentsPermalink

SEC. 6. MANDATORY REPORTING OF DAIRY COMMODITIES.

(a) Definitions- Section 272 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637a) is amended to read as follows:CommentsClose CommentsPermalink

‘SEC. 272. DEFINITIONS.

‘In this subtitle:CommentsClose CommentsPermalink





‘(1) DAIRY COMMODITY-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘dairy commodity’ means a product manufactured from milk or a milk-derived ingredient.CommentsClose CommentsPermalink





‘(B) INCLUSIONS- The term ‘dairy commodity’ includes--CommentsClose CommentsPermalink





‘(i) fluid milk;CommentsClose CommentsPermalink





‘(ii) cheese;CommentsClose CommentsPermalink





‘(iii) butter;CommentsClose CommentsPermalink





‘(iv) nonfat dry milk;CommentsClose CommentsPermalink





‘(v) skim milk;CommentsClose CommentsPermalink





‘(vi) whey products;CommentsClose CommentsPermalink





‘(vii) dry proteins (such as a milk protein concentrate, casein, and a caseinate);CommentsClose CommentsPermalink





‘(viii) a lactose product; andCommentsClose CommentsPermalink





‘(ix) a fresh dairy product (such as yogurt and ice cream).CommentsClose CommentsPermalink





‘(2) DAIRY PROCESSOR- The term ‘dairy processor’ means a person or legal entity that commercially processes a monthly average of at least 250,000 pounds of milk into cheese, butter, fresh dairy products, nonfat dry milk, or other dairy solids.CommentsClose CommentsPermalink





‘(3) SECRETARY- The term ‘Secretary’ means the Secretary of Agriculture.’.CommentsClose CommentsPermalink





(b) Mandatory Reporting- Section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b) is amended--CommentsClose CommentsPermalink





(1) by redesignating subsections (c) through (e) as subsections (d) through (f), respectively;CommentsClose CommentsPermalink





(2) by striking subsections (a) and (b) and inserting the following:CommentsClose CommentsPermalink





‘(a) Daily Reporting-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The corporate officers or officially designated representatives of each dairy processor shall report to the Secretary at least once each reporting day, not later than 10:00 a.m. Central Time, for each sales transaction involving a dairy commodity, information concerning--CommentsClose CommentsPermalink





‘(A) the sales price;CommentsClose CommentsPermalink





‘(B) the quantity sold;CommentsClose CommentsPermalink





‘(C) the location of the sales transaction; andCommentsClose CommentsPermalink





‘(D) product characteristics, including--CommentsClose CommentsPermalink





‘(i) moisture level;CommentsClose CommentsPermalink





‘(ii) packaging size;CommentsClose CommentsPermalink





‘(iii) grade;CommentsClose CommentsPermalink





‘(iv) if appropriate, fat or protein level;CommentsClose CommentsPermalink





‘(v) heat level for dried products; andCommentsClose CommentsPermalink





‘(vi) other defining product characteristics.CommentsClose CommentsPermalink





‘(2) PUBLICATION- The Secretary shall make the information reported under paragraph (1) available to the public not less frequently than once each reporting day, categorized by location and product characteristics.CommentsClose CommentsPermalink





‘(b) Weekly Reporting-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The corporate officers or officially designated representatives of each dairy processor shall report to the Secretary, on the first reporting day of each week, not later than 9:00 a.m. Central Time, for the prior week information concerning--CommentsClose CommentsPermalink





‘(A) the sales prices for sales transactions involving dairy commodities, categorized by product characteristics; andCommentsClose CommentsPermalink





‘(B) the quantities of dairy commodities sold.CommentsClose CommentsPermalink





‘(2) PUBLICATION- The Secretary shall make the information reported under paragraph (1) available to the public on the first reporting day of the each week, not later than 10:00 a.m. Central Time, categorized by location and product characteristics.CommentsClose CommentsPermalink





‘(3) FEDERAL ORDER PRICES- The Secretary shall use weekly prices published under paragraph (2) to calculate Federal milk marketing order prices.CommentsClose CommentsPermalink





‘(c) Monthly Reporting-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The corporate officers or officially designated representatives of each dairy processor shall report to the Secretary, on the first reporting day of each month, not later than 9:00 a.m. Central Time, the quantity of all dairy commodities processed by the dairy processor during the prior month.CommentsClose CommentsPermalink





‘(2) PUBLICATION- The Secretary shall make the information reported under paragraph (1) available to the public on the first reporting day of the each month, not later than 10:00 a.m. Central Time, categorized by location and product characteristics.’; andCommentsClose CommentsPermalink





(3) in subsection (d) (as redesignated by paragraph (2))--CommentsClose CommentsPermalink





(A) in paragraph (3), by adding at the end the following:CommentsClose CommentsPermalink





‘(C) COLD STORAGE SURVEY-CommentsClose CommentsPermalink





‘(i) IN GENERAL- For purposes of the cold storage survey of the National Agricultural Statistics Service, each facility storing dairy products shall report to the Secretary each month information on the quantity of dairy products stored.CommentsClose CommentsPermalink





‘(ii) AUDIT- Subject to the availability of appropriations, the Secretary shall take such measures as are necessary to audit the survey described in clause (i) and ensure compliance with the reporting requirement.CommentsClose CommentsPermalink





‘(D) DAIRY PRODUCTS SURVEY-CommentsClose CommentsPermalink





‘(i) IN GENERAL- For purposes of the dairy products survey of the National Agricultural Statistics Service, each manufacturer storing dairy products shall report to the Secretary each month information on the quantity of dairy products stored.CommentsClose CommentsPermalink





‘(ii) AUDIT- The Secretary shall take such measures as are necessary to audit the survey described in clause (i) and ensure compliance with the reporting requirement.’; andCommentsClose CommentsPermalink





(B) by adding at the end the followingCommentsClose CommentsPermalink





‘(7) SURVEY PRODUCTS- In carrying out this section, the Secretary shall require each manufacturer and other appropriate person to report to the Secretary, at a periodic interval determined by the Secretary, information on the products in the cold storage survey and the dairy products survey of the National Agricultural Statistics Service.CommentsClose CommentsPermalink





‘(8) EXEMPTION- The Secretary may exempt from all reporting requirements under this section any manufacturer or facility that stores less than an average of 10,000 pounds monthly on an annual basis.CommentsClose CommentsPermalink





‘(9) COLLECTION AND PUBLICATION OF DATA- The Secretary shall collect and publish data on actual milk prices paid by dairy processors.’.CommentsClose CommentsPermalink

SEC. 7. BUDGETARY EFFECTS.

The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled ‘Budgetary Effects of PAYGO Legislation’ for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage.CommentsClose CommentsPermalink