PRIA Logo™
Title 7, AgricultureRelease 119-110

§8772 Dairy Forward Pricing Program

Title 7 › CHAPTER 113 — AGRICULTURAL COMMODITY SUPPORT PROGRAMS › SUBCHAPTER IV — DAIRY › § 8772

Last updated Sep 23, 2026|Official source

Summary

The Secretary must set up a program that lets milk producers and their cooperatives choose to sign forward price contracts with milk handlers. Payments under those contracts count as meeting the federal minimum and uniform price rules in section 608c(5)(B) and (F) and the total payment rule in 608c(5)(C). The program only applies to federally regulated milk that is not Class I or for fluid use and that moves in interstate or foreign commerce or affects such commerce. A handler may mix or allocate milk receipts from producers not under contract to meet Class I needs without tracking each source separately. A handler cannot force a producer or cooperative to sign a forward contract. Producers can keep being paid under the Federal milk marketing order minimums. The Secretary must investigate complaints of coercion and act if coercion is found. No new forward contracts can be made after September 30, 2023, and no contract from the program can run past September 30, 2029.

Full Legal Text

Title 7, §8772

Agriculture, Source: USLM XML via OLRC

(a)Program required
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)Minimum milk price requirements
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)Milk covered by program
(1)Covered milk
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)Relation to Class I milk
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)Voluntary program
(1)In general
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)Pricing
A producer or cooperative association described in paragraph (1) may continue to have their milk priced in accordance with the minimum payment provisions of the Federal milk marketing order.
(3)Complaints
(A)In general
The Secretary shall investigate complaints made by producers or cooperative associations of coercion by handlers to enter into forward contracts.
(B)Action
If the Secretary finds evidence of coercion, the Secretary shall take appropriate action.
(e)Duration
(1)New contracts
No forward price contract may be entered into under the program established under this section after September 30, 2023.
(2)Application
No forward contract entered into under the program may extend beyond September 30, 2029.

Legislative History

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.

Reference

Citations & Metadata

Citation

7 U.S.C. § 8772

Title 7, Agriculture

Last Updated

Sep 23, 2026

Release point: 119-110