§7251 — Title 7 Agriculture | U.S. Code

Summary

The Secretary of Agriculture must support milk prices in the 48 mainland states by buying cheese, butter, and nonfat dry milk made from that milk. The support price for milk with 3.67% butterfat is set per hundredweight as follows: $10.35 for 1996; $10.20 for 1997; $10.05 for 1998; $9.90 for each year 1999 through 2001; and $9.90 for the period January 1, 2002, through May 31, 2002. The Secretary must set the same purchase price for each product for all sellers and keep prices high enough so an average-efficiency plant can pay farmers about the support rate. The Secretary can split the support between nonfat dry milk and butter to lower Commodity Credit Corporation spending or meet other goals, tell the House and Senate Agriculture Committees within 10 days of any allocation or change, and adjust those two product prices no more than twice a year. Farmers who did not increase marketings may get certain refunds for 1995 or 1996 under section 204(h)(2) of the Agricultural Act of 1949, subject to limits. The Commodity Credit Corporation runs the program. The rules here (except one subsection) only apply from the first day of the first month after April 4, 1996, through May 31, 2002, and the program ends on May 31, 2002.

Title 7, §7251

Agriculture — Source: USLM XML via OLRC

(a)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)The 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)The 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)(1)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. 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)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.

(e)(1)The 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)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 effective date of this section.

(3)A refund under this subsection shall not be considered as any type of price support or payment for purposes of section 3811 and 3821 of title 16.

(f)The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.

(g)

(h)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 terminate on May 31, 2002, and shall be considered to have expired notwithstanding section 907 of title 2.

Notes & Related Subsidiaries

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 section 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), substituted “each of calendar years 1999 and 2000” for “calendar year 1999”. Subsec. (h). Pub. L. 106–78, § 807(a)(2), substituted “2000” for “1999” in two places.

§7251 Milk Price Support Program