7 U.S.C. § 7251 — Milk price support program

Page 1982 TITLE 7—AGRICULTURE § 7251 loans under this subsection within deadlines established by the Secretary. (2) Eligibility of acquired feed grains A loan under this subsection shall be made on a quantity of corn or grain sorghum of the same crop acquired by the producer equivalent to a quantity determined by multiplying— (A) the acreage of the corn or grain sor- ghum in a high moisture state harvested on the producer’s farm; by (B) the lower of the farm program pay- ment yield or the actual yield on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sor- ghum was obtained. (3) ‘‘High moisture state’’ defined In this subsection, the term ‘‘high moisture state’’ means corn or grain sorghum having a moisture content in excess of Commodity Credit Corporation standards for marketing assistance loans made by the Secretary under section 7231 of this title. (b) Recourse loans available for seed cotton (1) Upland cotton For each of the 1996 through 2002 crops of up- land cotton, the Secretary shall make avail- able recourse seed cotton loans, as determined by the Secretary, to producers on a farm con- taining eligible cropland covered by a produc- tion flexibility contract. (2) Extra long staple cotton For each of the 1996 through 2002 crops of extra long staple cotton, the Secretary shall make available recourse seed cotton loans, as determined by the Secretary, on any produc- tion. (c) Recourse loans available for mohair (1) Recourse loans available Notwithstanding any other provision of law, during fiscal year 1999, the Secretary shall make available recourse loans, as determined by the Secretary, to producers of mohair pro- duced during or before that fiscal year. (2) Loan rate The loan rate for a loan under paragraph (1) shall be equal to $2.00 per pound. (3) Term of loan A loan under paragraph (1) shall have a term of 1 year beginning on the first day of the first month after the month in which the loan is made. (4) Waiver of interest Notwithstanding subsection (d), the Sec- retary shall not charge interest on a loan made under paragraph (1). (d) Repayment rates Repayment of a recourse loan made under this section shall be at the loan rate established for the commodity by the Secretary, plus interest (as determined by the Secretary). (Pub. L. 104–127, title I, § 137, Apr. 4, 1996, 110 Stat. 912; Pub. L. 105–277, div. A, § 101(a) [title XI, § 1126], Oct. 21, 1998, 112 Stat. 2681, 2681–46.) Editorial Notes AMENDMENTS 1998—Pub. L. 105–277, § 101(a) [title XI, § 1126(1)], in- serted ‘‘and other fibers’’ after ‘‘seed cotton’’ in section catchline. Subsecs. (c), (d). Pub. L. 105–277, § 101(a) [title XI, § 1126(2), (3)], added subsec. (c) and redesignated former subsec. (c) as (d). SUBCHAPTER IV—OTHER COMMODITIES PART A—DAIRY § 7251. Milk price support program (a) Support activities The Secretary of Agriculture shall support the price of milk produced in the 48 contiguous States through the purchase of cheese, butter, and nonfat dry milk produced from the milk. (b) Rate The price of milk shall be supported at the fol- lowing rates per hundredweight for milk con- taining 3.67 percent butterfat: (1) During calendar year 1996, $10.35. (2) During calendar year 1997, $10.20. (3) During calendar year 1998, $10.05. (4) During each of calendar years 1999 through 2001, $9.90. (5) During the period beginning on January 1, 2002, and ending on May 31, 2002, $9.90. (c) Purchase prices The support purchase prices under this section for each of the products of milk (butter, cheese, and nonfat dry milk) announced by the Sec- retary shall be the same for all of that product sold by persons offering to sell the product to the Secretary. The purchase prices shall be suf- ficient to enable plants of average efficiency to pay producers, on average, a price that is not less than the rate of price support for milk in ef- fect under subsection (b). (d) Special rule for butter and nonfat dry milk purchase prices (1) Allocation of purchase prices The Secretary may allocate the rate of price support between the purchase prices for nonfat dry milk and butter in a manner that will re- sult in the lowest level of expenditures by the Commodity Credit Corporation or achieve such other objectives as the Secretary con- siders appropriate. Not later than 10 days after making or changing an allocation, the Sec- retary shall notify the Committee on Agri- culture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of the allocation. Sec- tion 553 of title 5 shall not apply with respect to the implementation of this section. (2) Timing of purchase price adjustments The Secretary may make any such adjust- ments in the purchase prices for nonfat dry milk and butter the Secretary considers to be necessary not more than twice in each cal- endar year. (e) Refunds of 1995 and 1996 assessments (1) Refund required The Secretary shall provide for a refund of the entire reduction required under section Page 1983 TITLE 7—AGRICULTURE § 7253 204(h)(2) of the Agricultural Act of 1949 (7 U.S.C. 1446e(h)(2)), as in effect on the day be- fore the amendment made by subsection (g), in the price of milk received by a producer dur- ing calendar year 1995 or 1996, if the producer provides evidence that the producer did not in- crease marketings in calendar year 1995 or 1996 when compared to calendar year 1994 or 1995, respectively. (2) Exception This subsection shall not apply with respect to a producer for a particular calendar year if the producer has already received a refund under section 204(h) of the Agricultural Act of 1949 for the same fiscal year before the effec- tive date of this section. (3) Treatment of refund A refund under this subsection shall not be considered as any type of price support or pay- ment for purposes of sections 3811 and 3821 of title 16. (f) Commodity Credit Corporation The Secretary shall carry out the program au- thorized by this section through the Commodity Credit Corporation. (g) Omitted (h) Period of effectiveness This section (other than subsection (g)) shall be effective only during the period beginning on the first day of the first month beginning after April 4, 1996, and ending on May 31, 2002. The program authorized by this section shall termi- nate on May 31, 2002, and shall be considered to have expired notwithstanding section 907 of title 2. (Pub. L. 104–127, title I, § 141, Apr. 4, 1996, 110 Stat. 914; Pub. L. 106–78, title VIII, § 807(a), Oct. 22, 1999, 113 Stat. 1181; Pub. L. 106–387, § 1(a) [title VII, § 742(a)], Oct. 28, 2000, 114 Stat. 1549, 1549A–35; Pub. L. 107–76, title VII, § 772(a), Nov. 28, 2001, 115 Stat. 745.) Editorial Notes REFERENCES IN TEXT Section 204 of the Agricultural Act of 1949, referred to in subsec. (e)(1), (2), was classified to section 1446e of this title prior to repeal by subsec. (g) of this section. See Codification note below. CODIFICATION Section is comprised of section 141 of Pub. L. 104–127. Subsec. (g) of section 141 of Pub. L. 104–127 repealed sec- tion 1446e of this title and enacted provisions set out as a note under section 1446e of this title. AMENDMENTS 2001—Subsec. (b)(5). Pub. L. 107–76, § 772(a)(1), added par. (5). Subsec. (h). Pub. L. 107–76, § 772(a)(2), substituted ‘‘May 31, 2002’’ for ‘‘December 31, 2001’’ in two places. 2000—Subsec. (b)(4). Pub. L. 106–387, § 1(a) [title VII, § 742(a)(1)], substituted ‘‘through 2001’’ for ‘‘and 2000’’. Subsec. (h). Pub. L. 106–387, § 1(a) [title VII, § 742(a)(2)], substituted ‘‘2001’’ for ‘‘2000’’ in two places. 1999—Subsec. (b)(4). Pub. L. 106–78, § 807(a)(1), sub- stituted ‘‘each of calendar years 1999 and 2000’’ for ‘‘cal- endar year 1999’’. Subsec. (h). Pub. L. 106–78, § 807(a)(2), substituted ‘‘2000’’ for ‘‘1999’’ in two places. § 7252. Repealed. Pub. L. 107–76, title VII, § 772(b), Nov. 28, 2001, 115 Stat. 745 Section, Pub. L. 104–127, title I, § 142, Apr. 4, 1996, 110 Stat. 915; Pub. L. 106–78, title VIII, § 807(b), Oct. 22, 1999, 113 Stat. 1181; Pub. L. 106–387, § 1(a) [title VII, § 742(b)], Oct. 28, 2000, 114 Stat. 1549, 1549A–35, related to recourse loan program for commercial processors of dairy prod- ucts. § 7253. Consolidation and reform of Federal milk marketing orders (a) Amendment of orders (1) Required consolidation The Secretary shall amend Federal milk marketing orders issued under section 608c of this title to limit the number of Federal milk marketing orders to not less than 10 and not more than 14 orders. (2) Inclusion of California as separate order Upon the petition and approval of California dairy producers in the manner provided in sec- tion 608c of this title, the Secretary shall des- ignate the State of California as a separate Federal milk marketing order. The order cov- ering California shall have the right to reblend and distribute order receipts to recognize quota value. Subsection (b) does not apply to the authority of the Secretary under this sub- section. (3) Related issues addressed in consolidation Among the issues the Secretary is author- ized to implement as part of the consolidation of Federal milk marketing orders are the fol- lowing: (A) The use of utilization rates and mul- tiple basing points for the pricing of fluid milk. (B) The use of uniform multiple compo- nent pricing when developing 1 or more basic formula prices for manufacturing milk. (4) Effect of existing law In implementing the consolidation of Fed- eral milk marketing orders and related re- forms under this subsection, the Secretary may not consider, or base any decision on, the table contained in section 608c(5)(A) of this title. (b) Expedited process (1) Use of informal rulemaking To implement the consolidation of Federal milk marketing orders and related reforms under subsection (a), the Secretary shall use the notice and comment procedures provided in section 553 of title 5. (2) Time limitations (A) Proposed amendments The Secretary shall announce the proposed amendments to be made under subsection (a) not later than 2 years after April 4, 1996. (B) Final amendments The Secretary shall implement the amend- ments not later than 3 years after April 4, 1996. (3) Effect of court order The actions authorized by this subsection are intended to ensure the timely publication