§8772 — Title 7 Agriculture | U.S. Code

Summary

The Secretary must create a program that lets milk producers and their cooperatives choose to sign forward price contracts with milk handlers. Payments and prices under those contracts count as meeting the federal price rules in section 608c, paragraph (5)—specifically subparagraphs (B) and (F) and the total payment rule in subparagraph (C). The program only covers federally regulated milk that is not Class I (not for fluid/drinking use) and that moves in or affects interstate or foreign commerce. Handlers may mix and allocate milk receipts so they do not have to track each source to meet Class I needs. Handlers cannot force producers to join a contract to receive milk. Producers who do not join can still get payments under the Federal milk marketing order. The Secretary will investigate complaints of coercion and act if needed. No new forward contracts may be made after September 30, 2023, and no contract under the program can extend past September 30, 2029.

Title 7, §8772

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(a)The Secretary shall establish a program under which milk producers and cooperative associations of producers are authorized to voluntarily enter into forward price contracts with milk handlers.

(b)Payments made by milk handlers to milk producers and cooperative associations of producers, and prices received by milk producers and cooperative associations, in accordance with the terms of a forward price contract authorized by subsection (a), shall be treated as satisfying—

(1)all uniform and minimum milk price requirements of subparagraphs (B) and (F) of paragraph (5) of section 608c of this title; and

(2)the total payment requirement of subparagraph (C) of that paragraph.

(c)(1)The program shall apply only with respect to the marketing of federally regulated milk that—

(A)is not classified as Class I milk or otherwise intended for fluid use; and

(B)is in the current of interstate or foreign commerce or directly burdens, obstructs, or affects interstate or foreign commerce in federally regulated milk.

(2)To assist milk handlers in complying with paragraph (1)(A) without having to segregate or otherwise individually track the source and disposition of milk, a milk handler may allocate milk receipts from producers, cooperatives, and other sources that are not subject to a forward contract to satisfy the obligations of the handler with regard to Class I milk usage.

(d)(1)A milk handler may not require participation in a forward pricing contract as a condition of the handler receiving milk from a producer or cooperative association of producers.

(2)A producer or cooperative association described in paragraph (1) may continue to have their 11 So in original. Probably should be “its”. milk priced in accordance with the minimum payment provisions of the Federal milk marketing order.

(3)(A)The Secretary shall investigate complaints made by producers or cooperative associations of coercion by handlers to enter into forward contracts.

(B)If the Secretary finds evidence of coercion, the Secretary shall take appropriate action.

(e)(1)No forward price contract may be entered into under the program established under this section after September 30, 2023.

(2)No forward contract entered into under the program may extend beyond September 30, 2029.

Notes & Related Subsidiaries

Editorial Notes

Codification The authorities provided by each provision of, and each amendment made by, Pub. L. 110–246, as in effect on Sept. 30, 2012, to continue, and the Secretary of Agriculture to carry out the authorities, until the later of Sept. 30, 2013, or the date specified in the provision of, or amendment made by, Pub. L. 110–246, see section 701(a) of Pub. L. 112–240, set out in a 1-Year Extension of Agricultural Programs note under section 8701 of this title. Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

Amendments

2025—Subsec. (e)(2). Pub. L. 119–37 substituted “2029” for “2028”. 2024—Subsec. (e)(2). Pub. L. 118–158 substituted “2028” for “2027”. 2023—Subsec. (e)(2). Pub. L. 118–22 substituted “2027” for “2026”. 2018—Subsec. (e)(1). Pub. L. 115–334, § 1402(a)(1), substituted “2023” for “2018”. Subsec. (e)(2). Pub. L. 115–334, § 1402(a)(2), substituted “2026” for “2021”. 2014—Subsec. (e)(1). Pub. L. 113–79, § 1424(1), substituted “2018” for “2012”. Subsec. (e)(2). Pub. L. 113–79, § 1424(2), substituted “2021” for “2015”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2025 AmendmentAmendment by Pub. L. 119–37 to be applied and administered as if enacted on Sept. 30, 2025, see section 5002(g) of Pub. L. 119–37, set out in an Extension of Agricultural Programs note under section 9001 of this title.

Effective Date

of 2024 AmendmentAmendment by Pub. L. 118–158 to be applied and administered as if enacted on Sept. 30, 2024, see section 4101(g) of Pub. L. 118–158, set out in an Extension of Agricultural Programs note under section 9001 of this title.

Effective Date

of 2023 AmendmentAmendment by Pub. L. 118–22 to be applied and administered as if enacted on Sept. 30, 2023, see section 102(g) of Pub. L. 118–22, set out in an Extension of Agricultural Programs note under section 9001 of this title.

Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.

§8772 Dairy Forward Pricing Program

Summary

Title 7, §8772

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Effective Date

Citations & Metadata