USC Subchapter IV

USC Subchapter IV
in effect

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

(a) Support activitiesThe 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) RateThe price of milk shall be supported at the following rates per hundredweight for milk containing 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 pricesThe support purchase prices under this section for each of the products of milk (butter, cheese, and nonfat dry milk) announced by the Secretary 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 sufficient 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 effect under subsection (b). (d) Special rule for butter and nonfat dry milk purchase prices(1) Allocation of purchase pricesThe Secretary may allocate the rate of price support between the purchase prices for nonfat dry milk and butter in a manner that will result in the lowest level of expenditures by the Commodity Credit Corporation or achieve such other objectives as the Secretary considers appropriate. Not later than 10 days after making or changing an allocation, the Secretary shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of the allocation. Section 553 of title 5 shall not apply with respect to the implementation of this section. (2) Timing of purchase price adjustmentsThe Secretary may make any such adjustments in the purchase prices for nonfat dry milk and butter the Secretary considers to be necessary not more than twice in each calendar year. (e) Refunds of 1995 and 1996 assessments(1) Refund requiredThe Secretary shall provide for a refund of the entire reduction required under section 204(h)(2) of the Agricultural Act of 1949 (7 U.S.C. 1446e(h)(2)), as in effect on the day before the amendment made by subsection (g), in the price of milk received by a producer during calendar year 1995 or 1996, if the producer provides evidence that the producer did not increase marketings in calendar year 1995 or 1996 when compared to calendar year 1994 or 1995, respectively. (2) ExceptionThis 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 effective date of this section. (3) Treatment of refundA refund under this subsection shall not be considered as any type of price support or payment for purposes of sections 3811 and 3821 of title 16. (f) Commodity Credit CorporationThe Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation. (g) Omitted (h) Period of effectivenessThis 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 terminate on May 31, 2002, and shall be considered to have expired notwithstanding section 907 of title 2.

7 U.S.C. § 7253 Consolidation and reform of Federal milk marketing orders

(a) Amendment of orders(1) Required consolidationThe 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 orderUpon the petition and approval of California dairy producers in the manner provided in section 608c of this title, the Secretary shall designate the State of California as a separate Federal milk marketing order. The order covering 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 subsection. (3) Related issues addressed in consolidationAmong the issues the Secretary is authorized to implement as part of the consolidation of Federal milk marketing orders are the following:(A) The use of utilization rates and multiple basing points for the pricing of fluid milk. (B) The use of uniform multiple component pricing when developing 1 or more basic formula prices for manufacturing milk. (4) Effect of existing lawIn implementing the consolidation of Federal milk marketing orders and related reforms 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 rulemakingTo 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 amendmentsThe Secretary shall announce the proposed amendments to be made under subsection (a) not later than 2 years after April 4, 1996. (B) Final amendmentsThe Secretary shall implement the amendments not later than 3 years after April 4, 1996. (3) Effect of court orderThe actions authorized by this subsection are intended to ensure the timely publication and implementation of new and amended Federal milk marketing orders. In the event that the Secretary is enjoined or otherwise restrained by a court order from publishing or implementing the consolidation and related reforms under subsection (a), the length of time for which that injunction or other restraining order is effective shall be added to the time limitations specified in paragraph (2) thereby extending those time limitations by a period of time equal to the period of time for which the injunction or other restraining order is effective. (c) Failure to timely consolidate ordersIf the Secretary fails to implement the consolidation required under subsection (a)(1) within the time period required under subsection (b)(2)(B) (plus any additional period provided under subsection (b)(3)), the Secretary may not assess or collect assessments from milk producers or handlers under such section 608c of this title for marketing order administration and services provided under such section after the end of that period until the consolidation is completed. The Secretary may not reduce the level of services provided under the section on account of the prohibition against assessments, but shall rather cover the cost of marketing order administration and services through funds available for the Agricultural Marketing Service of the Department. (d) Report regarding further reforms(1) Report requiredNot later than April 1, 1997, the Secretary shall submit to Congress a report—(A) reviewing the Federal milk marketing order system established pursuant to section 608c of this title in light of the reforms required by subsection (a); (B) describing the efforts underway and the progress made in implementing the reforms required by subsection (a); and (C) containing such recommendations as the Secretary considers appropriate for further improvements and reforms to the Federal milk marketing order system. (2) Effect of other lawsAny limitation imposed by Act of Congress on the conduct or completion of reports to Congress shall not apply to the report required under this section, unless the limitation specifically refers to this section.

7 U.S.C. § 7254 Effect on fluid milk standards in State of California

Nothing in this Act or any other provision of law shall be construed to preempt, prohibit, or otherwise limit the authority of the State of California, directly or indirectly, to establish or continue to effect any law, regulation, or requirement regarding— (1) the percentage of milk solids or solids not fat in fluid milk products sold at retail or marketed in the State of California; or (2) the labeling of such fluid milk products with regard to milk solids or solids not fat.

7 U.S.C. § 7255 Milk manufacturing marketing adjustment

(a) Maximum allowances establishedNo State shall provide for a manufacturing allowance for the processing of milk in excess of—(1) $1.65 per hundredweight of milk for milk manufactured into butter and nonfat dry milk; and (2) $1.80 per hundredweight of milk for milk manufactured into cheese. (b) “Manufacturing allowance” definedIn this section, the term “manufacturing allowance” means—(1) the amount by which the product price value of butter and nonfat dry milk manufactured from a hundred pounds of milk containing 3.5 pounds of butterfat and 8.7 pounds of milk solids not fat resulting from a State’s yield and product price formulas exceeds the class price for the milk used to produce those products; or (2) the amount by which the product price value of cheese manufactured from a hundred pounds of milk containing 3.5 pounds of butterfat and 8.7 pounds of milk solids not fat resulting from a State’s yield and product price formulas exceeds the class price for the milk used to produce cheese. (c) Effect of violationIf the Secretary determines following a hearing that a State has in effect a manufacturing allowance that exceeds the manufacturing allowance authorized in subsection (a), the Secretary shall suspend purchases of cheddar cheese, butter, and nonfat dry milk produced in that State until such time as the State complies with such subsection. (d) Effective date; implementationThis section (other than subsection (e) 11 See Codification note below.) shall be effective during the period beginning on the first day of the first month beginning after April 4, 1996, and ending on December 31, 1999. During that period, the Secretary may exercise the authority provided to the Secretary under this section without regard to the issuance of regulations intended to carry out this section.

7 U.S.C. § 7256 Northeast Interstate Dairy Compact

Congress hereby consents to the Northeast Interstate Dairy Compact entered into among the States of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont as specified in section 1(b) Senate 11 So in original. Probably should be preceded by “of”. Joint Resolution 28 of the 104th Congress, as placed on the calendar of the Senate, subject to the following conditions: (1) Finding of compelling public interestBased upon a finding by the Secretary of a compelling public interest in the Compact region, the Secretary may grant the States that have ratified the Northeast Interstate Dairy Compact, as of April 4, 1996, the authority to implement the Northeast Interstate Dairy Compact. (2) Limitation on manufacturing priceThe Northeast Interstate Dairy Compact Commission shall not regulate Class II, Class III, or Class III–A milk used for manufacturing purposes or any other milk, other than Class I (fluid) milk, as defined by a Federal milk marketing order issued under section 608c of this title. (3) DurationConsent for the Northeast Interstate Dairy Compact shall terminate on September 30, 2001. (4) Additional StatesDelaware, New Jersey, New York, Pennsylvania, Maryland, and Virginia are the only additional States that may join the Northeast Interstate Dairy Compact, individually or otherwise, if upon entry the State is contiguous to a participating State and if Congress consents to the entry of the State into the Compact after April 4, 1996. (5) Compensation of Commodity Credit CorporationBefore the end of each fiscal year that a Compact price regulation is in effect, the Northeast Interstate Dairy Compact Commission shall compensate the Commodity Credit Corporation for the cost of any purchases of milk and milk products by the Corporation that result from the projected rate of increase in milk production for the fiscal year within the Compact region in excess of the projected national average rate of the increase in milk production, as determined by the Secretary. (6) Milk marketing order AdministratorAt the request of the Northeast Interstate Dairy Compact Commission, the Administrator of the applicable Federal milk marketing order issued under section 608c(5) 22 See References in Text note below. of this title shall provide technical assistance to the Compact Commission and be compensated for that assistance. (7) Further conditionsThe Northeast Interstate Dairy Compact Commission shall not prohibit or in any way limit the marketing in the Compact region of any milk or milk product produced in any other production area in the United States. The Compact Commission shall respect and abide by the ongoing procedures between Federal milk marketing orders with respect to the sharing of proceeds from sales within the Compact region of bulk milk, packaged milk, or producer milk originating from outside of the Compact region. The Compact Commission shall not use compensatory payments under section 10(6) of the Compact as a barrier to the entry of milk into the Compact region or for any other purpose. Establishment of a Compact over-order price, in itself, shall not be considered a compensatory payment or a limitation or prohibition on the marketing of milk.

7 U.S.C. § 7257 Authority to assist in establishment and maintenance of one or more export trading companies

The Secretary of Agriculture shall, consistent with the obligations of the United States as a member of the World Trade Organization, provide such advice and assistance to the United States dairy industry as may be necessary to enable that industry to establish and maintain one or more export trading companies under the Export Trading Company Act of 1982 (15 U.S.C. 4001 et seq.) for the purpose of facilitating the international market development for and exportation of dairy products produced in the United States.

7 U.S.C. § 7258 Standby authority to indicate entity best suited to provide international market development and export services

(a) Indication of entity best suited to assist international market development for and export of United States dairy productsThe Secretary of Agriculture shall indicate which entity or entities autonomous of the Government of the United States, which seeks such a designation, is best suited to facilitate the international market development for and exportation of United States dairy products, if the Secretary determines that—(1) the United States dairy industry has not established an export trading company under the Export Trading Company Act of 1982 (15 U.S.C. 4001 et seq.) for the purpose of facilitating the international market development for an exportation of dairy products produced in the United States on or before June 30, 1997; or (2) the quantity of exports of United States dairy products during the 12-month period preceding July 1, 1998 does not exceed the quantity of exports of United States dairy products during the 12-month period preceding July 1, 1997 by 1.5 billion pounds (milk equivalent, total solids basis). (b) Funding of export activitiesThe Secretary shall assist the entity or entities identified under subsection (a) in identifying sources of funding for the activities specified in subsection (a) from within the dairy industry and elsewhere. (c) Application of sectionThis section shall apply only during the period beginning on July 1, 1997 and ending on September 30, 2000.

7 U.S.C. § 7259 Study and report regarding potential impact of Uruguay Round on prices, income, and government purchases

(a) StudyThe Secretary of Agriculture shall conduct a study, on a variety by variety of cheese basis, to determine the potential impact on milk prices in the United States, dairy producer income, and Federal dairy program costs, of the allocation of additional cheese granted access to the United States as a result of the obligations of the United States as a member of the World Trade Organization. (b) ReportNot later than June 30, 1997, the Secretary shall report to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives the results of the study conducted under this section. (c) Rule of constructionAny limitation imposed by Act of Congress on the conduct or completion of studies or reports to Congress shall not apply to the study and report required under this section, unless the limitation specifically refers to this section.

7 U.S.C. § 7272 Sugar program

(a) SugarcaneThe Secretary shall make loans available to processors of domestically grown sugarcane at a rate equal to—(1) 18.00 cents per pound for raw cane sugar for the 2008 crop year; (2) 18.25 cents per pound for raw cane sugar for the 2009 crop year; (3) 18.50 cents per pound for raw cane sugar for the 2010 crop year; (4) 18.75 cents per pound for raw cane sugar for each of the 2011 through 2018 crop years; (5) 19.75 cents per pound for raw cane sugar for each of the 2019 through 2024 crop years; and (6) 24.00 cents per pound for raw cane sugar for each of the 2025 through 2031 crop years. (b) Sugar beetsThe Secretary shall make loans available to processors of domestically grown sugar beets at a rate equal to—(1) 22.9 cents per pound for refined beet sugar for the 2008 crop year; (2) a rate that is equal to 128.5 percent of the loan rate per pound of raw cane sugar for the applicable crop year under subsection (a) for each of the 2009 through 2024 crop years; and (3) a rate that is equal to 136.55 percent of the loan rate per pound of raw cane sugar under subsection (a)(6) for each of the 2025 through 2031 crop years. (c) Term of loans(1) In generalA loan under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the earlier of—(A) the end of the 9-month period beginning on the first day of the first month after the month in which the loan is made; or (B) the end of the fiscal year in which the loan is made. (2) Supplemental loansIn the case of a loan made under this section in the last 3 months of a fiscal year, the processor may repledge the sugar as collateral for a second loan in the subsequent fiscal year, except that the second loan shall—(A) be made at the loan rate in effect at the time the first loan was made; and (B) mature in 9 months less the quantity of time that the first loan was in effect. (d) Loan type; processor assurances(1) Nonrecourse loansThe Secretary shall carry out this section through the use of nonrecourse loans. (2) Processor assurances(A) In generalThe Secretary shall obtain from each processor that receives a loan under this section such assurances as the Secretary considers adequate to ensure that the processor will provide payments to producers that are proportional to the value of the loan received by the processor for the sugar beets and sugarcane delivered by producers to the processor. (B) Minimum payments(i) In generalSubject to clause (ii), the Secretary may establish appropriate minimum payments for purposes of this paragraph. (ii) LimitationIn the case of sugar beets, the minimum payment established under clause (i) shall not exceed the rate of payment provided for under the applicable contract between a sugar beet producer and a sugar beet processor. (3) AdministrationThe Secretary may not impose or enforce any prenotification requirement, or similar administrative requirement not otherwise in effect on May 13, 2002, that has the effect of preventing a processor from electing to forfeit the loan collateral (of an acceptable grade and quality) on the maturity of the loan. (e) Loans for in-process sugar(1) Definition of in-process sugars and syrupsIn this subsection, the term “in-process sugars and syrups” does not include raw sugar, liquid sugar, invert sugar, invert syrup, or other finished product that is otherwise eligible for a loan under subsection (a) or (b). (2) AvailabilityThe Secretary shall make nonrecourse loans available to processors of a crop of domestically grown sugarcane and sugar beets for in-process sugars and syrups derived from the crop. (3) Loan rateThe loan rate shall be equal to 80 percent of the loan rate applicable to raw cane sugar or refined beet sugar, as determined by the Secretary on the basis of the source material for the in-process sugars and syrups. (4) Further processing on forfeiture(A) In generalAs a condition of the forfeiture of in-process sugars and syrups serving as collateral for a loan under paragraph (2), the processor shall, within such reasonable time period as the Secretary may prescribe and at no cost to the Commodity Credit Corporation, convert the in-process sugars and syrups into raw cane sugar or refined beet sugar of acceptable grade and quality for sugars eligible for loans under subsection (a) or (b). (B) Transfer to corporationOnce the in-process sugars and syrups are fully processed into raw cane sugar or refined beet sugar, the processor shall transfer the sugar to the Commodity Credit Corporation. (C) Payment to processorOn transfer of the sugar, the Secretary shall make a payment to the processor in an amount equal to the amount obtained by multiplying—(i) the difference between—(I) the loan rate for raw cane sugar or refined beet sugar, as appropriate; and (II) the loan rate the processor received under paragraph (3); by (ii) the quantity of sugar transferred to the Secretary. (5) Loan conversionIf the processor does not forfeit the collateral as described in paragraph (4), but instead further processes the in-process sugars and syrups into raw cane sugar or refined beet sugar and repays the loan on the in-process sugars and syrups, the processor may obtain a loan under subsection (a) or (b) for the raw cane sugar or refined beet sugar, as appropriate. (6) Term of loanThe term of a loan made under this subsection for a quantity of in-process sugars and syrups, when combined with the term of a loan made with respect to the raw cane sugar or refined beet sugar derived from the in-process sugars and syrups, may not exceed 9 months, consistent with subsection (c). (f) Avoiding forfeitures; Corporation inventory disposition(1) In generalSubject to subsection (d)(3), to the maximum extent practicable, the Secretary shall operate the program established under this section at no cost to the Federal Government by avoiding the forfeiture of sugar to the Commodity Credit Corporation. (2) Inventory disposition(A) In generalTo carry out paragraph (1), the Commodity Credit Corporation may accept bids to obtain raw cane sugar or refined beet sugar in the inventory of the Commodity Credit Corporation from (or otherwise make available such commodities, on appropriate terms and conditions, to) processors of sugarcane and processors of sugar beets (acting in conjunction with the producers of the sugarcane or sugar beets processed by the processors) in return for the reduction of production of raw cane sugar or refined beet sugar, as appropriate. (B) Bioenergy feedstockIf a reduction in the quantity of production accepted under subparagraph (A) involves sugar beets or sugarcane that has already been planted, the sugar beets or sugarcane so planted may not be used for any commercial purpose other than as a bioenergy feedstock. (C) Additional authorityThe authority provided under this paragraph is in addition to any authority of the Commodity Credit Corporation under any other law. (g) Information reporting(1) Duty of processors and refiners to reportA sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such information as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar. (2) Duty of producers to report(A) Proportionate share StatesAs a condition of a loan made to a processor for the benefit of a producer, the Secretary shall require each producer of sugarcane located in a State (other than the Commonwealth of Puerto Rico) in which there are in excess of 250 producers of sugarcane to report, in the manner prescribed by the Secretary, the sugarcane yields and acres planted to sugarcane of the producer. (B) Other StatesThe Secretary may require each producer of sugarcane or sugar beets not covered by subparagraph (A) to report, in a manner prescribed by the Secretary, the yields of, and acres planted to, sugarcane or sugar beets, respectively, of the producer. (3) Duty of importers to report(A) In generalExcept as provided in subparagraph (B), the Secretary shall require an importer of sugars, syrups, or molasses to be used for human consumption or to be used for the extraction of sugar for human consumption to report, in the manner prescribed by the Secretary, the quantities of the products imported by the importer and the sugar content or equivalent of the products. (B) Tariff-rate quotasSubparagraph (A) shall not apply to sugars, syrups, or molasses that are within the quantities of tariff-rate quotas that are subject to the lower rate of duties. (4) Collection of information on Mexico(A) CollectionThe Secretary shall collect—(i) information on the production, consumption, stocks, and trade of sugar in Mexico, including United States exports of sugar to Mexico; and (ii) publicly available information on Mexican production, consumption, and trade of high fructose corn syrups. (B) PublicationThe data collected under subparagraph (A) shall be published in each edition of the World Agricultural Supply and Demand Estimates. (5) PenaltyAny person willfully failing or refusing to furnish the information required to be reported by paragraph (1), (2), or (3), or furnishing willfully false information, shall be subject to a civil penalty of not more than $10,000 for each such violation. (6) Monthly reportsTaking into consideration the information received under this subsection, the Secretary shall publish on a monthly basis composite data on production, imports, distribution, and stock levels of sugar. (h) Substitution of refined sugarFor purposes of Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule of the United States and the reexport programs and polyhydric alcohol program administered by the Secretary, all refined sugars (whether derived from sugar beets or sugarcane) produced by cane sugar refineries and beet sugar processors shall be fully substitutable for the export of sugar and sugar-containing products under those programs. (i) Effective periodThis section shall be effective only for the 2008 through 2031 crops of sugar beets and sugarcane.

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