§7255 Milk Manufacturing Marketing Adjustment

Summary

Sets caps on how much a State can give as a processing allowance for milk: no more than $1.65 per hundredweight for milk turned into butter and nonfat dry milk, and no more than $1.80 per hundredweight for milk turned into cheese. "Manufacturing allowance" means the extra dollar value a State’s formulas give to products made from 100 pounds of milk (assumed to have 3.5 pounds of butterfat and 8.7 pounds of solids-not-fat) above the class price for that milk. This applies separately for butter/nonfat dry milk and for cheese. If, after a hearing, the Secretary finds a State is over these limits, the Secretary must stop buying cheddar cheese, butter, and nonfat dry milk from that State until it follows the limits. The rule here runs from the first day of the first month beginning after April 4, 1996, through December 31, 1999, and during that time the Secretary may act under this rule without needing special regulations.