Committee on Rules

September 14, 1999 (5:00 p.m.)

SUMMARY OF AMENDMENTS SUBMITTED TO THE RULES COMMITTEE FOR H.R. 1402, CONSOLIDATION OF MILK MARKETING ORDERS

(in alphabetical order)

Baldwin #35 Takes the excess differential dollars in each order region where the milk market order differential is greater than the national average, and gives 95% of it to federal nutritional programs such as the National School Lunch program, the school breakfast program, WIC, and food stamps.

Boehner/Obey #1 Terminates the Federal Milk Marketing Order system on January 1, 2001.

Combest #17 The amendment contains 3 parts. Part 1 adds two new subsections to Section 1 of H.R. 1402. New subsection (c)(1) mandates that the Secretary should implement the amendments made in Section 1 of H.R. 1402 as soon as practicable. This section waives specific rulemaking and referendum requirements of the Agricultural Adjustment Act with regard to implementation of Section 1 of H.R. 1402. In addition, this amendment waives notice and comment requirements pursuant to Department policy and the Paperwork Reduction Act.

New subsection (c)(2) concerns provisions of the final rule which require USDA to publish a prospective pricing series regarding class I milk on the last Friday before the 23rd day of the previous month. Should an announcement be made by the USDA prior to enactment of this legislation, this amendment would allow the previously announced pricing series to remain in effect for the month in which it was intended, and any subsequent announcements would then be required to conform with Section 1 of the underlying Act.

Part 2 adds the same new paragraphs in part 1 to Section 2(e) of H.R. 1402 in order to waive rulemaking, referendum, and Paperwork Reduction Act requirements for the adjustments to the manufactured product formula pricing provisions. Part 3 (page 4, lines 6 through 8 of the amendment) repeals the Recourse Loan Program for Commercial Processors of Dairy Products by deleting section 142 of the Agricultural Market Transition Act due to budgetary constraints.

Mandates that the Secretary should implement the amendments in Section 1 of the bill which waives specific rulemaking and referendum requirements of the Agricultural Adjustment Act

Crowley # 39 Recommends that the Congress increase appropriations for federal nutrition programs by an amount that corresponds to any possible increase in costs of milk, milk fluid or milk products due to the enactment of the Option 1-A rule. LATE

Green(WI)/Ryan(WI)#18 Requires that a cooperative pay dairy producers at least 95% of the minimum price for the milk they produce.

Green(WI)/Ryan(WI#19 Prohibits the use of a region, city, or town name, without their consent, as the basis of pricing milk in the milk marketing program.

Green(WI)/Ryan(WI#20 Requires dairy producers to pay .02 cents per hundred weight of milk collected from producers in order areas with differentials above the federal milk marketing order average. The money would be deposited in a Dairy Farmer Assistance Trust Fund to benefit producers in order areas that are paid less than the national differential average and directs the USDA to create a formula to establish a method of distributing the trust fund revenues to producers.

Green(WI)/Ryan(WI#21 Amends Section 1 to require that the USDA conduct a national referendum on Secretary Glickman's proposed milk marketing reforms. Option 1A and 1B would be the only choices on the ballot. This amendment would require the referendum to take place with a single national vote, excluding California.

Gutknecht #16 Eliminates a loophole in the law that allows cooperatives in non-competitive markets to pay producers mail box prices less than the federal milk marketing order blend minimum prices.

Kind #3 Allows the pooling of Class 1 receipts.

Kind #4 Provides that all federal orders must be within 5% of the national Class I utilization rate.

Kind #5 Provides for the implementation of supply management measures in those regions that have a Class I differential greater than the national average.

Kind #6 Provides for the implementation of supply management measures in those regions that have a Class I utilization greater than the national average.

Kind #7 Provides for the deregulation of the federal milk marketing order system by January 1, 2001.

Kind #8 Provides for the exclusion of dairy compact states from the federal milk marketing order system.

Manzullo/Dooley #9 Outlines the role of the U.S. Trade Representative in implementing the provisions of the bill. Specifically, the U STR would ensure that the bill presents no risk of interference with our nation's international trade policy objectives and under that agreement, a determination must be made at least once a year by the USTR and any negative assessment made by the USTR, in regard to any international trade negotiations to which the U.S. is a party would nullify the provisions of the bill.

Minge #2 Allows all producers to share in additional receipts resulting from the use of Option 1-A.

Obey #10 Allows the pooling of Class 1 receipts.

Obey #11 Provides for the elimination of the Federal Milk Marketing Order system (FMMO) and replaces it with a program to verify the receipts of milk in the 48 contiguous states and provides for the auditing of marketing agreements.

Obey #12 Requires the USDA to develop a FMMO system map in which no region in a Class I utilization is more than 5% below the national average and does not affect the issue of distance differentials or classified pricing.

Obey #13 Extends the federal milk price support program until 2002; directs the Secretary of Agriculture to establish a price support level using the information provided by the monthly cost of production announcement; requires the Secretary to establish a price support that is no less than 85% of cash expenses and no more than 85% of total economic cost; delays the recourse loan program for processors for three years, from 2000 to 2003; and requires the Secretary of Agriculture to offset any costs than may be incurred to carry out the price support program by developing and implementing a production control program.

Obey #14 Requires the Secretary of Agriculture to develop and implement a supply management plan to maintain cheese prices at the Chicago Mercantile Exchange above $1.90 and maintain the BFP at no less than $16.00 with a requirement that dairy cooperatives and other milk handlers pick up 95% of each farmer's milk production, based upon a historic production level to be determined by the Secretary and provides for a referendum among dairy farmers to determine if they approve of the plan, with individual farmers each receiving one ballot, i.e. no en bloc voting.

Obey #15 Requires the Secretary of Agriculture to establish a Milk Pricing Agency within the Department of Agriculture to control production and maintain minimum dairy prices for producers.

Peterson #37 Extends the current milk price support program in response to Canadian and European milk price support activities.

Peterson #38 Establishes a national milk price that would be the same for all Federal milk marketing orders.

Ryan(WI)/Green(WI) #22 Repeals the requirement that a dairy processor go through an administrative proceeding before it can file a lawsuit challenging a provision of a milk marketing order.

Ryan(WI)/Green(WI) #23 Requires that cooperatives pay at least the minimum price to small dairy farmers with 100 or fewer cows.

Ryan(WI)/Green(WI) #24 Requires that cooperatives pay at least the minimum price to small dairy farmers with 200 or fewer cows.

Ryan(WI)/Green(WI) #25 Requires that cooperatives pay at least the minimum price to small dairy farmers with 300 or fewer cows.

Ryan(WI)/Green(WI) #26 Revokes the authority for marketwide service payments under the federal order system.

Ryan(WI)/Green(WI) #27 Provides that National Agriculture Statistical Survey surveys be made mandatory for manufacturers, and the data provided would be subject to audit or other verification.

Ryan(WI)/Green(WI) #28 Provides that the federal minimum price for milk used for other than fluid purposes may not exceed the minimum price established in California, plus twenty cents per hundred pounds of milk.

Ryan(WI)/Green(WI) #29 Mandates that the Class I differential may not exceed $2.27 in any order region in the country.

Ryan(WI)/Green(WI) #30 Requires that the Secretary publish information regarding the percentage of milk in any given order that is being marketed by dairy farmer cooperatives.

Ryan(WI)/Green(WI) #31 Provides that the federal minimum price for milk used for other than fluid purposes may not exceed the minimum price established in California per 100 pounds of milk.

Ryan(WI)/Green(WI) #32 Provides that the federal minimum price for milk used for other than fluid purposes may not exceed the minimum price established in California, plus ten cents per hundred pounds of milk.

Ryan(WI)/Green(WI) #33 Provides that dairy farmers have the right to request that the Secretary hold a hearing on an amendment to the federal milk marketing orders.

Ryan(WI)/Green(WI) #34 Provides that in the future all federal milk order regulations and amendments would be established by using an "informal rulemaking" process.

Stenholm/Pombo #36 Modifies the forward pricing provisions contained in the reported bill by sunsetting the Forward Price Contracting Program as of December 31, 2004, and requiring a report to Congress regarding its operation, and by limiting the scope of the program to apply only to milk other than milk used for Class I (beverage) purposes.

* Summaries derived from information submitted by the amendment sponsors.