§7255 — Title 7 Agriculture | U.S. Code

Summary

States may not give a manufacturing allowance higher than $1.65 per hundredweight for milk made into butter or nonfat dry milk, or higher than $1.80 per hundredweight for milk made into cheese. "Manufacturing allowance" means how much more the value of products from 100 pounds of milk (using 3.5 pounds butterfat and 8.7 pounds milk solids-not-fat under State formulas) is than the milk's class price. If, after a hearing, the Secretary finds a State is over those limits, the Secretary must stop buying cheddar cheese, butter, and nonfat dry milk from that State until it follows the limits. These rules applied from the first day of the first month after April 4, 1996, through December 31, 1999, and could be enforced without issuing new regulations.

Title 7, §7255

Agriculture — Source: USLM XML via OLRC

(a)No 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)In 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)If 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)This 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.

Editorial Notes

Codification Section is comprised of section 145 of Pub. L. 104–127. Subsec. (e) of section 145 of Pub. L. 104–127 repealed section 1446e–1 of this title and enacted provisions set out as a note under section 1446e–1 of this title.

§7255 Milk manufacturing marketing adjustment

Summary

Title 7, §7255

Notes & Related Subsidiaries

Editorial Notes

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