7 U.S.C. § 1446E
Section 1446e · Repealed. Pub. L. 104127, title I, 141(g), Apr. 4, 1996, 110 Stat. 915
Amended 6 times on record
Notwithstanding any other provision of law:
During the period beginning on January 1, 1991, and ending on December 31, 1996, the price of milk produced in the 48 contiguous States shall be supported as provided in this section.
During the period beginning on January 1, 1991, and ending on December 31, 1996, the price of milk shall be supported at a rate not less than $10.10 per hundredweight for milk containing 3.67 percent milkfat.
(1) In general
The price of milk shall be supported through the purchase of milk and the products of milk produced in the 48 contiguous States.
(2) CCC bid prices
The Commodity Credit Corporation support purchase prices under this section for each of the products of milk (butter, cheese, and nonfat dry milk) announced by the Corporation shall be the same for all of that product sold by persons offering to sell the product to the Corporation. The purchase prices shall be sufficient to enable plants of average efficiency to pay producers, on average, a price not less than the rate of price support for milk in effect during a 12-month period under this subsection.
(3) Butter and nonfat dry milk
(A) Allocation of purchase prices
Subject to subparagraph (B), the 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. 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.
(B) Guidelines
In the case of purchases of butter and nonfat dry milk that are made by the Secretary under this section on or after August 10, 1993, in allocating the rate of price support between the purchase prices of butter and nonfat dry milk under this paragraph, the Secretary may not—
(i) offer to purchase butter for more than $0.65 per pound; or
(ii) offer to purchase nonfat dry milk for less than $1.034 per pound.
(C) Timing of purchase price adjustments
The 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.
(1) Reductions
(A) In general
Effective January 1 of each of the calendar years 1991 through 1996, if the level of purchases of milk and the products of milk by the Commodity Credit Corporation under this section (less sales under section 1427 of this title for unrestricted use), as estimated by the Secretary by November 20 of the preceding calendar year, will exceed 5 billion pounds (milk equivalent, total milk solids basis), the Secretary shall decrease by an amount per hundredweight of at least $0.25 but not more than $0.50 the rate of price support for milk in effect for the calendar year.
(B) Prior notification
The Secretary shall, by November 20 of the preceding calendar year, notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of any proposed decrease in price support under this paragraph.
(2) Increases
(A) In general
Effective January 1 of each of the calendar years 1991 through 1996, if the level of purchases of milk and the products of milk by the Commodity Credit Corporation under this section (less sales under section 1427 of this title for unrestricted use), as estimated by the Secretary by November 20 of the preceding calendar year, will not exceed 3.5 billion pounds (milk equivalent, total milk solids basis), the Secretary shall increase by an amount per hundredweight of at least $0.25 the rate of price support for milk in effect for the calendar year.
(B) Prior notification
The Secretary shall, by November 20 of the preceding calendar year, notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of any proposed increase in price support under this paragraph.
(3) No adjustments
If for any of the calendar years 1992 through 1996, the level of purchases of milk and the products of milk by the Commodity Credit Corporation under this section (less sales under section 1427 of this title for unrestricted use), as estimated by the Secretary by November 20 of the preceding calendar year, will be less than 5 billion pounds (milk equivalent, total milk solids basis), but more than 3.5 billion pounds (milk equivalent, total milk solids basis), the Secretary shall not decrease the rate of price support for milk in effect for the calendar year.
(4) Minimum price
Notwithstanding any other provision of this section, in no event shall the price of milk be supported at less than $10.10 per hundredweight.
(5) Administration
(A) Milk equivalent, total milk solids basis
As used in this section, the term “milk equivalent, total milk solids basis”, of milk and the products of milk purchased by the Commodity Credit Corporation, shall be equal to the weighted-average of the milk equivalent (as computed on a milkfat basis and on a milk solids nonfat basis) of such products, with weighting factors equal to not more than 40 percent for the milk equivalent, milkfat basis, and not more than 70 percent for the milk equivalent, solids nonfat basis. The weighting factors shall total 100 percent.
(B) Level of purchases
In estimating the level of purchases of milk and the products of milk under this section, the Secretary shall deduct the amount, if any, by which the level of imports into the 48 contiguous States and the District of Columbia of milk and the products of milk during the most recent calendar year exceeds the annual average level of imports into the 48 contiguous States and the District of Columbia of milk and the products of milk during the period January 1, 1986, through December 31, 1990 (milk equivalent, total milk solids basis).
(1) In general
Not later than August 1, 1991, the Secretary shall prepare and submit a report and recommendations on various milk inventory management programs to the Committee on Agriculture of the House of Representatives and Committee on Agriculture, Nutrition, and Forestry of the Senate.
(2) Solicitation of proposals
Within 60 days after November 28, 1990, the Secretary shall publish in the Federal Register a notice to solicit proposals concerning a milk inventory management program.
(3) Required proposals
In carrying out this subsection, the Secretary shall study, among other proposals—
(A) an alternative classification of milk contained in section 608c(5) of this title;
(B) a program to support the income of milk producers through a system of established prices and deficiency payments; and
(C) other such programs submitted to the Secretary under paragraph (2) as the Secretary may determine appropriate after consultation with the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.
(4) Prohibited programs
In the study required under paragraph (3), the Secretary shall not consider any milk inventory management program that includes any milk production termination program that is similar to the program established under section 1446(d)(3) of this title, or support price reductions below the levels established under this section.
(5) Criteria for evaluation
The Secretary shall evaluate the proposals for a milk inventory management program based on—
(A) the ability of the program to limit Government purchases of milk products to 6,000,000,000 pounds (milk equivalent, total milk solids basis) in a calendar year;
(B) the speed and effectiveness of reducing excess milk production;
(C) the effectiveness in sustaining reduced milk production for at least a 5-year period with and without the continuation of the program;
(D) the regional impact on milk prices, producer revenue, and milk supplies;
(E) the impact on national producer income and Government expenditures;
(F) the impact on the rural economy and maintaining family farms;
(G) the impact on the availability of wholesome dairy products for domestic and foreign nutrition and food assistance programs;
(H) technological innovations;
(I) the effectiveness in reducing butter fat production and increasing protein content in milk;
(J) the impact of temporary increases and decreases of milk production;
(K) the impact on the United States livestock industry; and
(L) all other issues the Secretary considers appropriate.
(6) Notice and comment
The Secretary shall provide for public notice and comment on the milk inventory programs studied by the Secretary under this subsection no later than June 1, 1991.
On August 1 and by November 20 of each of the calendar years 1991 through 1995, the Secretary shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate regarding the value and volume of dairy product purchases on a milk equivalent, total milk solids basis, the Secretary estimates that the Corporation will make during the upcoming calendar year.
(1) In general
In order to offset any cost to the Commodity Credit Corporation associated with the purchase (less sales under section 1427 of this title for unrestricted use) of milk and the products of milk in excess of 7,000,000,000 pounds (milk equivalent, total milk solids basis), during any of the calendar years 1992 through 1996, the Secretary shall, if necessary, provide for a reduction to be made in the price received by producers for all milk produced in the 48 contiguous States and marketed by producers for commercial use.
(2) Calculation
If on November 20 of each of the calendar years 1991 through 1996, the Secretary estimates that the level of Commodity Credit Corporation purchases (less sales under section 1427 of this title for unrestricted use) in the following calendar year of milk and the products of milk will exceed 7,000,000,000 pounds (milk equivalent, total milk solids basis), the amount of reduction in the price received by producers in such following calendar year shall be an amount per hundredweight calculated by dividing—
(A) the cost of the purchases (less sales under section 1427 of this title for unrestricted use) in excess of 7,000,000,000 pounds, milk equivalent, total milk solids basis; by
(B) the total quantity of hundredweights of milk the Secretary estimates will be produced and marketed in the United States for commercial use in such following calendar year.
(3) Adjustments
The Secretary shall adjust any such assessment in future years, or refund any portion of such assessments, as needed, to carry out the purposes of this subsection.
(1) In general
Beginning January 1, 1991, the Secretary shall provide for a reduction in the price received by producers for all milk produced in the 48 contiguous States and marketed by producers for commercial use, in addition to any reduction in price required under subsection (g) of this section.
(2) Amount
The amount of the reduction under paragraph (1) in the price received by producers shall be—
(A) during calendar year 1991, 5 cents per hundredweight of milk marketed;
(B) during each of the calendar years 1992 through 1995, 11.25 cents per hundredweight of milk marketed, which rate shall be adjusted on or before May 1 of each of the calendar years 1992 through 1995 by an amount per hundredweight that is necessary to compensate for refunds made under paragraph (3) on the basis of marketings in the previous calendar year; and
(C) during each of calendar years 1996 and 1997, 10 cents per hundredweight of milk marketed, which rate shall be adjusted on or before May 1 of the respective calendar year in the manner provided in subparagraph (B).
(3) Refund
The Secretary shall provide a refund of the entire reduction under paragraph (2) in the price of milk received by a producer during a calendar year, if the producer provides evidence that the producer did not increase marketings in the calendar year that such reduction was in effect when compared to the immediately preceding calendar year. A 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.
(1) Collection
Reductions in price required under subsection (g) or (h) of this section shall be collected and remitted to the Commodity Credit Corporation in the manner prescribed by the Secretary.
(2) Penalties
If any person fails to collect or remit the reduction required by subsection (g) or (h) of this section or fails to comply with such requirements for recordkeeping or otherwise as are required by the Secretary to carry out such subsection, the person shall be liable to the Secretary for a civil penalty up to an amount determined by multiplying—
(A) the quantity of milk involved in the violation; by
(B) the support rate for the applicable calendar year for milk.
(3) Enforcement
The Secretary may enforce subsection (g) or (h) of this section in the courts of the United States.
The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this section.
Notwithstanding any other provision of law, this section shall be effective only during the period beginning on January 1, 1991, and ending on December 31, 1996.
Editorial notes U.S. Code · Office of the Law Revision Counsel
Amendments
1994—Subsec. (g)(1). Pub. L. 103–247, §1(c)(1), inserted “(less sales under section 1427 of this title for unrestricted use)” after “purchase”.
Subsec. (g)(2). Pub. L. 103–247, §1(c)(2), inserted “(less sales under section 1427 of this title for unrestricted use)” after “purchases” in introductory provisions and in subpar. (A).
1993—Pub. L. 103–66, §1105(a)(1), substituted “1996” for “1995” in section catchline.
Subsecs. (a), (b). Pub. L. 103–66, §1105(a)(2), substituted “1996” for “1995”.
Subsec. (c)(3)(A). Pub. L. 103–66, §1105(a)(3)(A), substituted “Subject to subparagraph (B), the Secretary” for “The Secretary”.
Subsec. (c)(3)(B), (C). Pub. L. 103–66, §1105(a)(3)(B), (C), added subpar. (B) and redesignated former subpar. (B) as (C).
Subsecs. (d)(1)(A), (2)(A), (3), (g)(1). Pub. L. 103–66, §1105(a)(2), substituted “1996” for “1995”.
Subsec. (g)(2). Pub. L. 103–66, §1105(a)(5), substituted “1996” for “1994”.
Subsec. (h)(2)(C). Pub. L. 103–66, §1105(a)(4), added subpar. (C).
Subsec. (k). Pub. L. 103–66, §1105(a)(2), substituted “1996” for “1995”.
1991—Subsec. (a). Pub. L. 102–237, §127(a)(1), inserted “produced in the 48 contiguous States” after “the price of milk”.
Subsec. (c)(1). Pub. L. 102–237, §127(a)(2), inserted before period at end “produced in the 48 contiguous States”.
Subsec. (d)(5)(B). Pub. L. 102–237, §127(a)(3), substituted “48 contiguous States and the District of Columbia” for “United States” in two places.
Subsecs. (g)(1), (h)(1). Pub. L. 102–237, §127(a)(4), substituted “48 contiguous States” for “United States”.
Subsec. (h)(3). Pub. L. 102–237, §113(10), inserted at end “A 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.”
1990—Subsec. (g)(1). Pub. L. 101–508, §1105(g)(1)(A), substituted “1992 through 1995” for “1991 through 1994”.
Subsec. (g)(2). Pub. L. 101–508, §1105(g)(1)(B), in provisions preceding subpar. (A), inserted “in the following calendar year” after “purchases” and “in such following calendar year” after “producers”.
Subsec. (g)(2)(B). Pub. L. 101–508, §1105(g)(1)(C), substituted “such following calendar year” for “that calendar year”.
Subsecs. (h) to (k). Pub. L. 101–508, §1105(g)(2), (3), added subsecs. (h) and (i) and redesignated former subsecs. (h) and (i) as (j) and (k), respectively.
Effective Date of 1991 Amendment
Section 127(b) of Pub. L. 102–237 provided that: “This section [amending this section] and the amendments made by this section shall take effect as of January 1, 1991.”
Effective Date of 1990 Amendment
Amendment by Pub. L. 101–508 effective Nov. 29, 1990, see section 1301 of Pub. L. 101–508, set out as a note under section 511r of this title.
Effective Date
Section 101(a) of Pub. L. 101–624 provided that this section is effective Jan. 1, 1991.
Bovine Growth Hormones; Reduction in Price Received
Section 1105(c) of Pub. L. 103–66 provided that:
“(1) Definitions.—As used in this subsection:
“(A) Bovine growth hormone.—The term ‘bovine growth hormone’ means a synthetic growth hormone produced through the process of recombinant DNA techniques that is intended for use in bovine animals.
“(B) Date of approval.—The term ‘date of approval’ means the date the Food and Drug Administration, pursuant to authority under section 512 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 360b), first approves an application with respect to the use of bovine growth hormone.
“(2) Reduction in price received.—In order to offset the economic effects of the sale of bovine growth hormone, the Secretary of Agriculture shall decrease the amount of the reduction in price received by producers specified in subparagraph (B) or (C) (as appropriate) of section 204(h)(2) of the Agricultural Act of 1949 (7 U.S.C. 1446e(h)(2)) by 10 percent during the period beginning on the date of approval and ending 90 days after the date of approval and, during the period, it shall be unlawful for a person to sell bovine growth hormone for commercial agricultural purposes.”
Rulemaking Procedures
Section 101(b) of Pub. L. 101–624 provided that: “Section 553 of title 5, United States Code, shall not apply with respect to the implementation of section 204 of the Agricultural Act of 1949 [7 U.S.C. 1446e] (as added by subsection (a) of this section) by the Secretary of Agriculture, including determinations made regarding—
“(1) the level of price support for milk; and
“(2) any reduction in the prices paid to producers of milk.”
Application of Support Price for Milk
Section 106 of Pub. L. 101–624 provided that: “For purposes of supporting the price of milk under section 204 of the Agricultural Act of 1949 [7 U.S.C. 1446e] (as added by section 101 of this Act), the Secretary of Agriculture may not take into consideration any market value of whey.”