,,ii #aacth ,,congress #ast ,session ,s4 #fje ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #ai1 #bjac ,mrs4 ,gillibrand introduced the following bill2 which was read twice and referred to the ,committee on ,agriculture1 ,nutrition1 and ,forestry ,a ,,bill ,to improve ,federal dairy programs4 #a4 ,short title ,this ,act may be cited as the ,dairy ,income ,fairness ,act of #bjac4 #b4 ,definition of ,secretary ,in this ,act1 the term ,secretary means the ,secretary of ,agriculture4 ,d ,dairy ,i ,dairy production margin protection and dairy market stabilization programs #adja4 ,definitions ,in this part3 7#a7 ,actual dairy production margin ,the term actual dairy production margin means the difference between the all-milk price and the average feed cost1 as calculated under section #adjb4 7#b7 ,all-milk price ,the term all-milk price means the average price received1 per hundredweight of milk1 by dairy operations for all milk sold to plants and dealers in the ,united ,states1 as determined by the ,secretary4 7#c7 ,annual production history ,the term annual production history means the production history determined for a participating dairy operation under section #adac7;b7 whenever the participating dairy operation purchases supplemental production margin protection4 7#d7 ,average feed cost ,the term average feed cost means the average cost of feed used by a dairy operation to produce a hundredweight of milk1 determined under section #adjb using the sum of the following3 7,a7 ,the product determined by multiplying #a4jgbh by the price of corn per bushel4 7,b7 ,the product determined by multiplying #j4jjgce by the price of soybean meal per ton4 7,c7 ,the product determined by multiplying #j4jacg by the price of alfalfa hay per ton4 7#e7 ,basic production history ,the term basic production history means the production history determined for a participating dairy operation under section #adac7;a7 for provision of basic production margin protection4 7#f7 ,consecutive #b-month period ,the term consecutive #b-month period refers to the #b-month period consisting of the months of ,january and ,february1 ,march and ,april1 ,may and ,june1 ,july and ,august1 ,september and ,october1 or ,november and ,december1 respectively4 7#g7 ,dairy operation 7,a7 ,in general ,the term dairy operation means1 as determined by the ,secretary1 #a or more dairy producers that produce and market milk as a single dairy operation in which each dairy producer-- 7i7 shares in the pooling of resources and a common ownership structure2 7ii7 is at risk in the production of milk on the dairy operation2 and 7iii7 contributes land1 labor1 management1 equipment1 or capital to the dairy operation4 7,b7 ,additional ownership structures ,the ,secretary shall determine additional ownership structures to be covered by the definition of dairy operation4 7#h7 ,handler 7,a7 ,in general ,the term handler means the initial individual or entity making payment to a dairy operation for milk produced in the ,united ,states and marketed for commercial use4 7,b7 ,producer-handler ,the term includes a producer-handler when the producer satisfies the definition in subparagraph 7,a74 7#i7 ,participating dairy operation ,the term participating dairy operation means a dairy operation that-- 7,a7 signs up under section #adab to participate in the production margin protection program under subpart ,a2 and 7,b7 as a result1 also participates in the stabilization program under subpart ,b4 7#aj7 ,production margin protection program ,the term production margin protection program means the dairy production margin protection program required by subpart ,a4 7#aa7 ,secretary ,the term ,secretary means the ,secretary of ,agriculture4 7#ab7 ,stabilization program ,the term stabilization program means the dairy market stabilization program required by subpart ,b for all participating dairy operations4 7#ac7 ,stabilization program base ,the term stabilization program base1 with respect to a participating dairy operation1 means the stabilization program base calculated for the participating dairy operation under section #adca7;b74 7#ad7 ,united ,states ,the term ,united ,states1 in a geographical sense1 means the #ej ,states1 the ,district of ,columbia1 ,american ,samoa1 ,guam1 the ,commonwealth of the ,northern ,mariana ,islands1 the ,commonwealth of ,puerto ,rico1 the ,virgin ,islands of the ,united ,states1 and any other territory or possession of the ,united ,states4 #adjb4 ,calculation of average feed cost and actual dairy production margins 7a7 ,calculation of average feed cost ,the ,secretary shall calculate the national average feed cost for each month using the following data3 7#a7 ,the price of corn for a month shall be the price received during that month by farmers in the ,united ,states for corn1 as reported in the monthly ,agricultural ,prices report by the ,secretary4 7#b7 ,the price of soybean meal for a month shall be the central ,illinois price for soybean meal1 as reported in the ,market ,news-,monthly ,soybean ,meal ,price ,report by the ,secretary4 7#c7 ,the price of alfalfa hay for a month shall be the price received during that month by farmers in the ,united ,states for alfalfa hay1 as reported in the monthly ,agricultural ,prices report by the ,secretary4 7b7 ,calculation of actual dairy production margins 7#a7 ,production margin protection program ,for use in the production margin protection program under subpart ,a1 the ,secretary shall calculate the actual dairy production margin for each consecutive #b-month period by subtracting-- 7,a7 the average feed cost for that consecutive #b-month period1 determined in accordance with subsection 7a72 from 7,b7 the all-milk price for that consecutive #b-month period4 7#b7 ,stabilization program ,for use in the stabilization program under subpart ,b1 the ,secretary shall calculate each month the actual dairy production margin for the preceding month by subtracting-- 7,a7 the average feed cost for that preceding month1 determined in accordance with subsection 7a72 from 7,b7 the all-milk price for that preceding month4 7#c7 ,time for calculations ,the calculations required by paragraphs 7#a7 and 7#b7 shall be made as soon as practicable using the full month price of the applicable reference month4 ,a ,dairy production margin protection program #adaa4 ,establishment of dairy production margin protection program ,effective not later than #abj days after the effective date of this subtitle1 the ,secretary shall establish and administer a dairy production margin protection program under which participating dairy operations are paid-- 7#a7 basic production margin protection program payments under section #adad when actual dairy production margins are less than the threshold levels for such payments2 and 7#b7 supplemental production margin protection program payments under section #adae if purchased by a participating dairy operation4 #adab4 ,participation of dairy operations in production margin protection program 7a7 ,eligibility ,all dairy operations in the ,united ,states shall be eligible to participate in the production margin protection program1 except that a participating dairy operation shall be required to register with the ,secretary before the participating dairy operation may receive-- 7#a7 basic production margin protection program payments under section #adad2 and 7#b7 if the participating dairy operation purchases supplemental production margin protection under section #adae1 supplemental production margin protection program payments under such section4 7b7 ,registration process 7#a7 ,in general ,the ,secretary shall specify the manner and form by which a participating dairy operation may register to participate in the production margin protection program4 7#b7 ,treatment of multiproducer dairy operations ,if a participating dairy operation is operated by more than #a dairy producer1 all of the dairy producers of the participating dairy operation shall be treated as a single dairy operation for purposes of-- 7,a7 registration to receive basic production margin protection and election to purchase supplemental production margin protection2 7,b7 payment of the participation fee under subsection 7d7 and producer premiums under section #adae2 and 7,c7 participation in the stabilization program under subtitle ,b4 7#c7 ,treatment of producers with multiple dairy operations ,if a dairy producer operates #b or more dairy operations1 each dairy operation of the producer shall separately register to receive basic production margin protection and purchase supplemental production margin protection and only those dairy operations so registered shall be covered by the stabilization program4 7c7 ,time for registration 7#a7 ,existing dairy operations ,during the #ae-month period beginning on the date of the initiation of the registration period for the production margin protection program1 a dairy operation that is actively engaged as of such date may register with the ,secretary-- 7,a7 to receive basic production margin protection2 and 7,b7 if the dairy operation elects1 to purchase supplemental production margin protection4 7#b7 ,new ,entrants ,a dairy producer that has no existing interest in a dairy operation as of the date of the initiation of the registration period for the production margin protection program1 but that1 after such date1 establishes a new dairy operation1 may register with the ,secretary during the #a-year period beginning on the date on which the dairy operation first markets milk commercially-- 7,a7 to receive basic production margin protection2 and 7,b7 if the dairy operation elects1 to purchase supplemental production margin protection4 7d7 ,transition from ,,milc to production margin protection 7#a7 ,definition of transition period ,in this subsection1 the term transition period means the period during which the milk income loss program established under section #aejf of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hggc7 and the production margin protection program under this subtitle are both in existence4 7#b7 ,notice of availability ,not later than #cj days after the date of enactment of this ,act1 the ,secretary shall publish a notice in the ,federal ,register to inform dairy operations of the availability of basic production margin protection and supplemental production margin protection1 including the terms of the protection and information about the option of dairy operations during the transition period to make an election described in paragraph 7#c74 7#c7 ,election ,except as provided in paragraph 7#d71 a dairy operation may elect to participate in either the milk income loss program established under section #aejf of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hggc7 or the production margin protection program under this subtitle for the duration of the transition period4 7#d7 ,transfer to production margin protection ,a dairy operation that elects to participate in the milk income loss program established under section #aejf of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hggc7 during the transition period may1 at any time1 make a permanent transfer to the production margin protection program4 7e7 ,administration fee 7#a7 ,administration fee required ,except as provided in paragraph 7#e71 a participating dairy operation shall-- 7,a7 pay an administration fee under this subsection to register to participate in the production margin protection program2 and 7,b7 pay the administration fee annually thereafter to continue to participate in the production margin protection program4 7#b7 ,fee amount ,the administration fee for a participating dairy operation for a calendar year shall be based on the pounds of milk 7in millions7 marketed by the participating dairy operation in the previous calendar year1 as follows3 ,pounds ,marketed 7in millions7,administration ,fee less than #aajj #a to #e #bej more than #e to #ajcej more than #aj to #dja1jjj more than #djb1ejj4 7#c7 ,deposit of ,fees ,all administration fees collected under this subsection shall be credited to the fund or account used to cover the costs incurred to administer the production margin protection program and the stabilization program and shall be available to the ,secretary1 without further appropriation and until expended1 for use or transfer as provided in paragraph 7#d74 7#d7 ,use of ,fees ,the ,secretary shall use administration fees collected under this subsection-- 7,a7 to cover administrative costs of the production margin protection program and stabilization program2 and 7,b7 to cover costs of the ,department of ,agriculture relating to reporting of dairy market news1 carrying out the amendments made by section #adgf1 and carrying out section #bgc of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afcg;b71 to the extent funds remain available after operation of subparagraph 7,a74 7#e7 ,waiver ,the ,secretary shall waive or reduce the administration fee required under paragraph 7#a7 in the case of a limited-resource dairy operation1 as defined by the ,secretary4 7f7 ,limitation ,a dairy operation may only participate in the production margin protection program or the livestock gross margin for dairy program under the ,federal ,crop ,insurance ,act 7#g ,u4,s4,c4 #aeja et seq471 but not both4 #adac4 ,production history of participating dairy operations 7a7 ,production history for basic production margin protection 7#a7 ,determination required ,for purposes of providing basic production margin protection1 the ,secretary shall determine the basic production history of a participating dairy operation4 7#b7 ,calculation ,except as provided in paragraph 7#c71 the basic production history of a participating dairy operation for basic production margin protection is equal to the highest annual milk marketings of the participating dairy operation during any #a of the #c calendar years immediately preceding the calendar year in which the participating dairy operation first signed up to participate in the production margin protection program4 7#c7 ,election by new dairy operations ,in the case of a participating dairy operation that has been in operation for less than a year1 the participating dairy operation shall elect #a of the following methods for the ,secretary to determine the basic production history of the participating dairy operation3 7,a7 ,the volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount4 7,b7 ,an estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the ,secretary4 7#d7 ,no change in production history for basic production margin protection ,once the basic production history of a participating dairy operation is determined under paragraph 7#b7 or 7#c71 the basic production history shall not be subsequently changed for purposes of determining the amount of any basic production margin protection payments for the participating dairy operation made under section #adad4 7b7 ,annual production history for supplemental production margin protection 7#a7 ,determination required ,for purposes of providing supplemental production margin protection for a participating dairy operation that purchases supplemental production margin protection for a year under section #adae1 the ,secretary shall determine the annual production history of the participating dairy operation under paragraph 7#b74 7#b7 ,calculation ,the annual production history of a participating dairy operation for a year is equal to the actual milk marketings of the participating dairy operation during the preceding calendar year4 7#c7 ,new dairy operations ,subsection 7a77#c7 shall apply with respect to determining the annual production history of a participating dairy operation that has been in operation for less than a year4 7c7 ,required information ,a participating dairy operation shall provide all information that the ,secretary may require in order to establish-- 7#a7 the basic production history of the participating dairy operation under subsection 7a72 and 7#b7 the production history of the participating dairy operation whenever the participating dairy operation purchases supplemental production margin protection under section #adae4 7d7 ,transfer of production histories 7#a7 ,transfer by sale or lease ,in promulgating the rules to initiate the production margin protection program1 the ,secretary shall specify the conditions under which and the manner by which the production history of a participating dairy operation may be transferred by sale or lease4 7#b7 ,coverage level 7,a7 ,basic production margin protection ,a purchaser or lessee to whom the ,secretary transfers a basic production history under this subsection shall not obtain a different level of basic production margin protection than the basic production margin protection coverage held by the seller or lessor from whom the transfer was obtained4 7,b7 ,supplemental production margin protection ,a purchaser or lessee to whom the ,secretary transfers an annual production history under this subsection shall not obtain a different level of supplemental production margin protection coverage than the supplemental production margin protection coverage in effect for the seller or lessor from whom the transfer was obtained for the calendar year in which the transfer was made4 7e7 ,movement and transfer of production history 7#a7 ,movement and transfer authorized ,subject to paragraph 7#b71 if a participating dairy operation moves from one location to another location1 the participating dairy operation may transfer the basic production history and annual production history associated with the participating dairy operation4 7#b7 ,notification requirement ,a participating dairy operation shall notify the ,secretary of any move of a participating dairy operation under paragraph 7#a74 7#c7 ,subsequent occupation of vacated location ,a party subsequently occupying a participating dairy operation location vacated as described in paragraph 7#a7 shall have no interest in the basic production history or annual production history previously associated with the participating dairy operation at such location4 #adad4 ,basic production margin protection 7a7 ,payment threshold ,the ,secretary shall make a payment to participating dairy operations in accordance with subsection 7b7 whenever the average actual dairy production margin for a consecutive #b-month period is less than #d4jj per hundredweight of milk4 7b7 ,basic production margin protection payment ,the basic production margin protection payment for a participating dairy operation for a consecutive #b-month period shall be equal to the product obtained by multiplying-- 7#a7 the difference between the average actual dairy production margin for the consecutive #b-month period and #d4jj1 except that1 if the difference is more than #d4jj1 the ,secretary shall use #d4jj2 by 7#b7 the lesser of-- 7,a7 #hj percent of the production history of the participating dairy operation1 divided by #f2 or 7,b7 the actual quantity of milk marketed by the participating dairy operation during the consecutive #b-month period4 #adae4 ,supplemental production margin protection 7a7 ,election of supplemental production margin protection ,a participating dairy operation may annually purchase supplemental production margin protection to protect1 during the calendar year for which purchased1 a higher level of the income of a participating dairy operation than the income level guaranteed by basic production margin protection under section #adad4 7b7 ,selection of payment threshold ,a participating dairy operation purchasing supplemental production margin protection for a year shall elect a coverage level that is higher1 in any increment of #j4ej1 than the payment threshold for basic production margin protection specified in section #adad7;a71 but not to exceed #h4jj4 7c7 ,coverage percentage ,a participating dairy operation purchasing supplemental production margin protection for a year shall elect a percentage of coverage equal to not more than #ij percent1 nor less than #be percent1 of the annual production history of the participating dairy operation4 7d7 ,premiums for supplemental production margin protection 7#a7 ,premiums required ,a participating dairy operation that purchases supplemental production margin protection shall pay an annual premium equal to the product obtained by multiplying-- 7,a7 the coverage percentage elected by the participating dairy operation under subsection 7c72 7,b7 the annual production history of the participating dairy operation2 and 7,c7 the premium per hundredweight of milk1 as specified in the applicable table under paragraph 7#b7 or 7#c74 7#b7 ,premium per hundredweight for first #d million pounds of production ,for the first #d1jjj1jjj pounds of milk marketings included in the annual production history of a participating dairy operation1 the premium per hundredweight corresponding to each coverage level specified in the following table is as follows3 ,coverage ,level,premium per ,cwt4 #f4ejj4jj #g4jjj4dj #g4ejj4fj #h4jjj4ie4 7#c7 ,premium per hundredweight for production in excess of #d million pounds ,for milk marketings in excess of #d1jjj1jjj pounds included in the annual production history of a participating dairy operation1 the premium per hundredweight corresponding to each coverage level is as follows3 ,coverage ,level,premium per ,cwt4 #d4ejj4jb #e4jjj4jd #e4ejj4aj #f4jjj4ae #f4ejj4bi #g4jjj4fb #g4ejj4hc #h4jja4jf4 7#d7 ,time for payment ,in promulgating the rules to initiate the production margin protection program1 the ,secretary shall provide more than #a method by which a participating dairy operation that purchases supplemental production margin protection for a calendar year may pay the premium under this subsection for that year in any manner that maximizes participating dairy operation payment flexibility and program integrity4 7e7 ,premium obligations 7#a7 ,pro-ration of premium for new dairy operations ,a participating dairy operation described in section #adab7;c77#b7 that purchases supplemental production margin protection for a calendar year after the start of the calendar year shall pay a pro-rated premium for that calendar year based on the portion of the calendar year for which the participating dairy operation purchases the coverage4 7#b7 ,legal obligation ,a participating dairy operation that purchases supplemental production margin protection for a calendar year shall be legally obligated to pay the applicable premium for that calendar year1 except that the ,secretary may waive that obligation1 under terms and conditions determined by the ,secretary1 for #a or more producers in any participating dairy operation in the case of death1 retirement1 permanent dissolution of a participating dairy operation1 or other circumstances as the ,secretary considers appropriate to ensure the integrity of the program4 7f7 ,supplemental payment threshold ,a participating dairy operation with supplemental production margin protection shall receive a supplemental production margin protection payment whenever the average actual dairy production margin for a consecutive #b-month period is less than the coverage level threshold selected by the participating dairy operation under subsection 7b74 7g7 ,supplemental production margin protection payments 7#a7 ,in general ,the supplemental production margin protection payment for a participating dairy operation is in addition to the basic production margin protection payment4 7#b7 ,amount of payment ,the supplemental production margin protection payment for the participating dairy operation shall be determined as follows3 7,a7 ,the ,secretary shall calculate the difference between the coverage level threshold selected by the participating dairy operation under subsection 7b7 and the greater of-- 7i7 the average actual dairy production margin for the consecutive #b-month period2 or 7ii7 #d4jj4 7,b7 ,the amount determined under subparagraph 7,a7 shall be multiplied by the percentage selected by the participating dairy operation under subsection 7c7 and by the lesser of the following3 7i7 ,the annual production history of the participating dairy operation1 divided by #f4 7ii7 ,the actual amount of milk marketed by the participating dairy operation during the consecutive #b-month period4 #adaf4 ,effect of failure to pay administration fees or premiums 7a7 ,loss of benefits ,a participating dairy operation that fails to pay the required administration fee under section #adab or is in arrears on premium payments for supplemental production margin protection under section #adae-- 7#a7 remains legally obligated to pay the administration fee or premiums1 as the case may be2 and 7#b7 may not receive basic production margin protection payments or supplemental production margin protection payments until the fees or premiums are fully paid4 7b7 ,enforcement ,the ,secretary may take such action as necessary to collect administration fees and premium payments for supplemental production margin protection4 ,b ,dairy market stabilization program #adca4 ,establishment of dairy market stabilization program 7a7 ,program required2 purpose ,effective not later than #abj days after the effective date of this subtitle1 the ,secretary shall establish and administer a dairy market stabilization program applicable to participating dairy operations for the purpose of assisting in balancing the supply of milk with demand when participating dairy operations are experiencing low or negative operating margins4 7b7 ,election of stabilization program base calculation method 7#a7 ,election ,when a dairy operation signs up under section #adab to participate in the production margin protection program1 the dairy operation shall inform the ,secretary of the method by which the stabilization program base for the participating dairy operation will be calculated under paragraph 7#c74 7#b7 ,change in calculation method ,a participating dairy operation may change the stabilization program base calculation method to be used for a calendar year by notifying the ,secretary of the change not later than a date determined by the ,secretary4 7#c7 ,calculation methods ,a participating dairy operation may elect either of the following methods for calculation of the stabilization program base for the participating dairy operation3 7,a7 ,the volume of the average monthly milk marketings of the participating dairy operation for the #c months immediately preceding the announcement by the ,secretary that the stabilization program will become effective4 7,b7 ,the volume of the monthly milk marketings of the participating dairy operation for the same month in the preceding year as the month for which the ,secretary has announced the stabilization program will become effective4 7#d7 ,exemption ,the stabilization program base for a participating dairy producer shall not include the first #d1jjj1jjj pounds of production of the participating dairy producer per calendar year1 as determined by the ,secretary4 #adcb4 ,threshold for implementation and reduction in dairy payments 7a7 ,when stabilization program required ,except as provided in subsection 7b71 the ,secretary shall announce that the stabilization program is in effect and order reduced payments by handlers to participating dairy operations that exceed the applicable percentage of the participating dairy operation's stabilization program base whenever-- 7#a7 the actual dairy production margin has been #f4jj or less per hundredweight of milk for each of the immediately preceding #b months2 or 7#b7 the actual dairy production margin has been #d4jj or less per hundredweight of milk for the immediately preceding month4 7b7 ,exception ,if any of the conditions described in section #adcf7;b7 have been met during the #b-month period immediately preceding the month in which the announcement under subsection 7a7 would otherwise be made by the ,secretary in the absence of this exception1 the ,secretary shall-- 7#a7 suspend the stabilization program2 7#b7 refrain from making the announcement under subsection 7a7 to implement order the stabilization payment2 or 7#c7 order reduced payments4 7c7 ,effective date for implementation of payment reductions ,reductions in dairy payments shall commence beginning on the first day of the month immediately following the date of the announcement by the ,secretary under subsection 7a74 #adcc4 ,milk marketings information 7a7 ,collection of milk marketing data ,the ,secretary shall establish1 by regulation1 a process to collect from participating dairy operations and handlers such information that the ,secretary considers necessary for each month during which the stabilization program is in effect4 7b7 ,reduce regulatory burden ,when implementing the process under subsection 7a71 the ,secretary shall minimize the regulatory burden on participating dairy operations and handlers4 #adcd4 ,calculation and collection of reduced dairy operation payments 7a7 ,reduced participating dairy operation payments required ,during any month in which payment reductions are in effect under the stabilization program1 each handler shall reduce payments to each participating dairy operation from whom the handler receives milk4 7b7 ,reductions based on actual dairy production margin 7#a7 ,reduction requirement #a ,if the ,secretary determines that the average actual dairy production margin has been less than #f4jj but greater than #e4jj per hundredweight of milk for #b consecutive months1 the handler shall make payments to a participating dairy operation for a month based on the greater of the following3 7,a7 #ih percent of the stabilization program base of the participating dairy operation4 7,b7 #id percent of the marketings of milk for the month by the participating dairy operation4 7#b7 ,reduction requirement #b ,if the ,secretary determines that the average actual dairy production margin has been less than #e4jj but greater than #d4jj for #b consecutive months1 the handler shall make payments to a participating dairy operation for a month based on the greater of the following3 7,a7 #ig percent of the stabilization program base of the participating dairy operation4 7,b7 #ic percent of the marketings of milk for the month by the participating dairy operation4 7#c7 ,reduction requirement #c ,if the ,secretary determines that the average actual dairy production margin has been #d4jj or less for any #a month1 the handler shall make payments to a participating dairy operation for a month based on the greater of the following3 7,a7 #if percent of the stabilization program base of the participating dairy operation4 7,b7 #ib percent of the marketings of milk for the month by the participating dairy operation4 7c7 ,continuation of reductions ,the largest level of payment reduction required under paragraph 7#a71 7#b71 or 7#c7 of subsection 7b7 shall be continued for each month until the ,secretary suspends the stabilization program and terminates payment reductions in accordance with section #adcf4 7d7 ,payment reduction exception ,notwithstanding any preceding subsection of this section1 a handler shall make no payment reductions for a participating dairy operation for a month if the participating dairy operation's milk marketings for the month are equal to or less than the percentage of the stabilization program base applicable to the participating dairy operation under paragraph 7#a71 7#b71 or 7#c7 of subsection 7b74 #adce4 ,remitting funds to the ,secretary and use of funds 7a7 ,remitting funds ,as soon as practicable after the end of each month during which payment reductions are in effect under the stabilization program1 each handler shall remit to the ,secretary an amount equal to the amount by which payments to participating dairy operations are reduced by the handler under section #adcd4 7b7 ,deposit of remitted funds ,all funds received under subsection 7a7 shall be available to the ,secretary1 without further appropriation and until expended1 for use or transfer as provided in subsection 7c74 7c7 ,use of funds 7#a7 ,availability for certain commodity donations ,not later than #ij days after the funds described in subsection 7a7 are due as determined by the ,secretary1 the ,secretary shall obligate the funds for the purpose of-- 7,a7 purchasing dairy products for donation to food banks and other programs that the ,secretary determines appropriate2 and 7,b7 expanding consumption and building demand for dairy products4 7#b7 ,no duplication of effort ,the ,secretary shall ensure that expenditures under paragraph 7#a7 are compatible with1 and do not duplicate1 programs supported by the dairy research and promotion activities conducted under the ,dairy ,production ,stabilization ,act of #aihc 7#g ,u4,s4,c4 #deja et seq474 7#c7 ,accounting ,the ,secretary shall keep an accurate account of all funds expended under paragraph 7#a74 7d7 ,annual ,report ,not later than ,december #ca of each year that the stabilization program is in effect1 the ,secretary shall submit to the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate a report that provides an accurate accounting of-- 7#a7 the funds received by the ,secretary during the preceding fiscal year under subsection 7a72 7#b7 all expenditures made by the ,secretary under subsection 7b7 during the preceding fiscal year2 and 7#c7 the impact of the stabilization program on dairy markets4 7e7 ,enforcement ,if a participating dairy operation or handler fails to remit or collect the amounts by which payments to participating dairy operations are reduced under section #adcd1 the participating dairy operation or handler responsible for the failure shall be liable to the ,secretary for the amount that should have been remitted or collected1 plus interest4 ,in addition to the enforcement authorities available under section #adcg1 the ,secretary may enforce this subsection in the courts of the ,united ,states4 #adcf4 ,suspension of reduced payment requirement 7a7 ,determination of prices ,for purposes of this section3 7#a7 ,the price in the ,united ,states for cheddar cheese and nonfat dry milk shall be determined by the ,secretary4 7#b7 ,the world price of cheddar cheese and skim milk powder shall be determined by the ,secretary4 7b7 ,suspension thresholds ,the stabilization program shall be suspended or the ,secretary shall refrain from making the announcement under section #adcb7;a7 if the ,secretary determines that-- 7#a7 the actual dairy production margin is greater than #f4jj per hundredweight of milk for #b consecutive months2 7#b7 the actual dairy production margin is equal to or less than #f4jj 7but greater than #e4jj7 for #b consecutive months1 and during the same #b consecutive months-- 7,a7 the price in the ,united ,states for cheddar cheese is equal to or greater than the world price of cheddar cheese2 or 7,b7 the price in the ,united ,states for nonfat dry milk is equal to or greater than the world price of skim milk powder2 7#c7 the actual dairy production margin is equal to or less than #e4jj 7but greater than #d4jj7 for #b consecutive months1 and during the same #b consecutive months-- 7,a7 the price in the ,united ,states for cheddar cheese is more than #e percent above the world price of cheddar cheese2 or 7,b7 the price in the ,united ,states for nonfat dry milk is more than #e percent above the world price of skim milk powder2 or 7#d7 the actual dairy production margin is equal to or less than #d4jj for #b consecutive months1 and during the same #b consecutive months-- 7,a7 the price in the ,united ,states for cheddar cheese is more than #g percent above the world price of cheddar cheese2 or 7,b7 the price in the ,united ,states for nonfat dry milk is more than #g percent above the world price of skim milk powder4 7c7 ,implementation by handlers ,effective on the day after the date of the announcement by the ,secretary under subsection 7b7 of the suspension of the stabilization program1 the handler shall cease reducing payments to participating dairy operations under the stabilization program4 7d7 ,condition on resumption of stabilization program ,upon the announcement by the ,secretary under subsection 7b7 that the stabilization program has been suspended1 the stabilization program may not be implemented again until1 at the earliest-- 7#a7 #b months have passed1 beginning on the first day of the month immediately following the announcement by the ,secretary2 and 7#b7 the conditions of section #adcb7;a7 are again met4 #adcg4 ,enforcement 7a7 ,unlawful act ,it shall be unlawful and a violation of the this subpart for any person subject to the stabilization program to willfully fail or refuse to provide1 or delay the timely reporting of1 accurate information and remittance of funds to the ,secretary in accordance with this subpart4 7b7 ,order ,after providing notice and opportunity for a hearing to an affected person1 the ,secretary may issue an order against any person to cease and desist from continuing any violation of this subpart4 7c7 ,appeal ,an order of the ,secretary under subsection 7b7 shall be final and conclusive unless an affected person files an appeal of the order of the ,secretary in ,united ,states district court not later than #cj days after the date of the issuance of the order4 ,a finding of the ,secretary in the order shall be set aside only if the finding is not supported by substantial evidence4 7d7 ,noncompliance with order ,if a person subject to this subpart fails to obey an order issued under subsection 7b7 after the order has become final and unappealable1 or after the appropriate ,united ,states district court has entered a final judgment in favor of the ,secretary1 the ,united ,states may apply to the appropriate ,united ,states district court for enforcement of the order4 ,if the court determines that the order was lawfully made and duly served and that the person violated the order1 the court shall enforce the order4 #adch4 ,audit requirements 7a7 ,audits of dairy operation and handler compliance 7#a7 ,audits authorized ,if determined by the ,secretary to be necessary to ensure compliance by participating dairy operations and handlers with the stabilization program1 the ,secretary may conduct periodic audits of participating dairy operations and handlers4 7#b7 ,sample of dairy operations ,any audit conducted under this subsection shall include1 at a minimum1 investigation of a statistically valid and random sample of participating dairy operations4 7b7 ,submission of results ,the ,secretary shall submit the results of any audit conducted under subsection 7a7 to the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate and include such recommendations as the ,secretary considers appropriate regarding the stabilization program4 #adci4 ,study2 report 7a7 ,in general ,the ,secretary shall direct the ,office of the ,chief ,economist to conduct a study of the impacts of the program established under section #adca7;a74 7b7 ,considerations ,the study conducted under subsection 7a7 shall consider-- 7#a7 the economic impact of the program throughout the dairy product value chain1 including the impact on producers1 processors1 domestic customers1 export customers1 actual market growth and potential market growth1 farms of different sizes1 and different regions and ,states2 and 7#b7 the impact of the program on the competitiveness of the ,united ,states dairy industry in international markets4 7c7 ,report ,not later than ,december #a1 #bjaf1 the ,office of the ,chief ,economist shall submit to the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate a report that describes the results of the study conducted under subsection 7a74 ,c ,administration #adea4 ,duration ,the production margin protection program and the stabilization program shall end on ,december #ca1 #bjag4 #adeb4 ,administration and enforcement 7a7 ,in general ,the ,secretary shall promulgate regulations to address administrative and enforcement issues involved in carrying out the production margin protection1 supplemental production margin protection1 and market stabilization programs4 7b7 ,reconstitution and eligibility issues 7#a7 ,reconstitution ,using authorities under section #ajja7;f7 and #ajja;,b of the ,food ,security ,act of #aihe 7#g ,u4,s4,c4 #acjh7;f71 #acjh-b71 the ,secretary shall promulgate regulations to prohibit a dairy producer from reconstituting a dairy operation for the sole purpose of the dairy producer-- 7,a7 receiving basic margin protection2 7,b7 purchasing supplemental margin protection2 or 7,c7 avoiding participation in the market stabilization program4 7#b7 ,eligibility issues ,using authorities under section #ajja7;f7 and #ajja;,b of the ,food ,security ,act of #aihe 7#g ,u4,s4,c4 #acjh7;f71 #acjh-b71 the ,secretary shall promulgate regulations-- 7,a7 to prohibit a scheme or device2 7,b7 to provide for equitable relief2 and 7,c7 to provide for other issues affecting eligibility and liability issues4 7#c7 ,administrative appeals ,using authorities under section #ajja7;h7 of the ,food ,security ,act of #aihe 7#g ,u4,s4,c4 #acjh7;h77 and subtitle ,h of the ,department of ,agriculture ,reorganization ,act 7#g ,u4,s4,c4 #fiia et seq471 the ,secretary shall promulgate regulations to provide for administrative appeals of decisions of the ,secretary that are adverse to participants of the programs described in subsection 7a74 ,,ii ,dairy market transparency #adfa4 ,dairy product mandatory reporting 7a7 ,definitions ,section #bgb7a77;,a7 of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afcg;a7#a77;,a77 is amended by inserting 1 or any other products that may significantly aid price discovery in the dairy markets1 as determined by the ,secretary after of #aicg4 7b7 ,mandatory reporting for dairy products ,section #bgc7;b7 of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afcg;b7b77 is amended-- 7#a7 by striking paragraph 7#a7 and inserting the following new paragraph3 7#a7 ,in general ,in establishing the program1 the ,secretary shall only-- 7,a7 7i7 subject to the conditions described in paragraph 7#b71 require each manufacturer to report to the ,secretary1 more frequently than once per month1 information concerning the price1 quantity1 and moisture content of dairy products sold by the manufacturer and any other product characteristics that may significantly aid price discovery in the dairy markets1 as determined by the ,secretary2 and 7ii7 modify the format used to provide the information on the day before the date of enactment of this subtitle to ensure that the information can be readily understood by market participants2 and 7,b7 require each manufacturer and other person storing dairy products 7including dairy products in cold storage7 to report to the ,secretary1 more frequently than once per month1 information on the quantity of dairy products stored4 2 and 7#b7 in paragraph 7#b71 by inserting or those that may significantly aid price discovery in the dairy markets after ,federal milk marketing order each place it appears in subparagraphs 7,a71 7,b71 and 7,c74 #adfb4 ,federal milk marketing order information 7a7 ,information clearinghouse 7#a7 ,in general ,the ,secretary shall1 on behalf of each milk marketing order issued under the ,agricultural ,adjustment ,act 7#g ,u4,s4,c4 #fja et seq471 reenacted with amendments by the ,agricultural ,marketing ,agreement ,act of #aicg1 establish an information clearinghouse for the purposes of educating the public about the ,federal milk marketing order system and any marketing order referenda1 including proposal information and timelines that shall be kept current and updated as information becomes available4 7#b7 ,requirements ,information under paragraph 7#a7 shall include-- 7,a7 information on procedures by which cooperatives vote2 7,b7 if applicable1 information on the manner by which producers may cast an individual ballot2 7,c7 in applicable1 instructions on the manner in which to vote online2 7,d7 due dates for each specific referendum2 7,e7 the text of each referendum question under consideration2 7,f7 a description in plain language of the question2 7,g7 any relevant background information to the question2 and 7,h7 any other information that increases ,federal milk marketing order transparency4 7b7 ,notification list for upcoming referendum ,each ,federal milk marketing order shall-- 7#a7 make available the information described in subsection 7b7 through an ,internet site2 and 7#b7 publicize the information in major agriculture and dairy-specific publications on upcoming referenda4 7c7 ,study 7#a7 ,in general ,the ,secretary shall conduct a study of the feasibility of establishing #b classes of milk1 a fluid class and a manufacturing class1 to replace the #d-;class system in effect on the date of enactment of this ,act in administering ,federal milk marketing orders4 7#b7 ,federal ,milk ,market ,order ,review ,commission ,the ,secretary may elect to use the ,federal ,milk ,market ,order ,review ,commission established under section #aeji7;a7 of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7,public ,law #aaj-bdf2 #abb ,stat4 #agbf71 or documents of the ,commission1 to conduct all or part of the study4 7#c7 ,report ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall submit to the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition1 and ,forestry of the ,senate a report that describes the results of the study required under this subsection1 including any recommendations4 ,,iii ,repeal or reauthorization of other dairy-related provisions #adga4 ,repeal of dairy product price support and milk income loss contract programs 7a7 ,repeal of dairy product price support program ,section #aeja of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hgga7 is repealed4 7b7 ,repeal of milk income loss contract program 7#a7 ,payments under milk income loss contract program ,section #aejf7;c7 of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hggc7;c77 is amended-- 7,a7 in paragraph 7#b77;,a71 by striking #af4id and inserting #ah4he2 and 7,b7 in paragraph 7#c7-- 7i7 in subparagraph 7,a71 by inserting and after the semicolon2 7ii7 in subparagraph 7,b71 by striking ,august #ca1 #bjac1 #de percent2 and and inserting on the date that is #bgj days after the date of enactment of the ,dairy ,income ,fairness ,act of #bjac1 #de percent42 and 7iii7 by striking subparagraph 7,c74 7#b7 ,extension ,section #aejf7;h77#a7 of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hggc7;h77#a77 is amended by striking ,september #cj1 #bjac and inserting the date that is #bgj days after the date of enactment of the ,dairy ,income ,fairness ,act of #bjac4 7#c7 ,repeal ,effective on the date that is #bga days after the date of enactment of the ,dairy ,income ,fairness ,act of #bjac1 section #aejf of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hggc7 is repealed4 #adgb4 ,repeal of dairy export incentive program 7a7 ,repeal ,section #aec of the ,food ,security ,act of #aihe 7#ae ,u4,s4,c4 #gac;a-#ad7 is repealed4 7b7 ,conforming amendments ,section #ijb7b7 of the ,trade ,sanctions ,reform and ,export ,enhancement ,act of #bjjj 7#bb ,u4,s4,c4 #gbja7b77 is amended-- 7#a7 by striking subparagraph 7,d72 and 7#b7 by redesignating subparagraphs 7,e7 and 7,f7 as subparagraphs 7,d7 and 7,e71 respectively4 #adgc4 ,extension of dairy forward pricing program ,section #aejb7;e7 of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hggb7;e77 is amended-- 7#a7 in paragraph 7#a71 by striking #bjab and inserting #bjag2 and 7#b7 in paragraph 7#b71 by striking #bjae and inserting #bjbj4 #adgd4 ,extension of dairy indemnity program ,section #c of ,public ,law #ij-dhd 7#g ,u4,s4,c4 #dejl7 is amended by striking #bjab and inserting #bjag4 #adge4 ,extension of dairy promotion and research program ,section #aac7;e77#b7 of the ,dairy ,production ,stabilization ,act of #aihc 7#g ,u4,s4,c4 #dejd7;e77#b77 is amended by striking #bjab and inserting #bjag4 #adgf4 ,extension of ,federal ,milk ,marketing ,order ,review ,commission ,section #aeji7;a7 of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7,public ,law #aaj-bdf2 #abb ,stat4 #agbf7 is amended by inserting or other funds after ,subject to the availability of appropriations4 ,,iv ,federal milk marketing order reform #adha4 ,federal milk marketing order program pre-hearing procedure for ,class ,,iii pricing 7a7 ,in general ,the ,secretary shall use the pre-hearing procedure described in this section to determine to conduct a hearing to consider alternative formulas for ,class ,,iii milk product pricing under section #h;c of the ,agricultural ,adjustment ,act 7#g ,u4,s4,c4 #fjh;c71 reenacted with amendments by the ,agricultural ,marketing ,agreement ,act of #aicg4 7b7 ,requests for proposals 7#a7 ,in general ,not later than #fj days after the date of enactment of this ,act1 the ,secretary shall issue a request for the submission by interested persons of preliminary proposals for replacement of the ,class ,,iii milk product pricing formula4 7#b7 ,preliminary proposals ,preliminary proposals submitted under paragraph 7#a7-- 7,a7 may include competitive pay price formulas2 and 7,b7 shall provide sufficient detail in concept to serve as the basis for the convening by the ,secretary of a public information session for review and discussion in accordance with section #ijj4bd of title #g1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act71 but need not conform with the other procedural requirements of part #ijj of title #g1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act74 7c7 ,pre-,hearing information session review 7#a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall convene a public information session under section #ijj4bd of title #g1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act74 7#b7 ,requirements ,the ,secretary shall review all preliminary proposals submitted under this section that are of sufficient conceptual detail to allow for the review described in paragraph 7#a74 7d7 ,hearing determination 7#a7 ,in general ,not later than #ij days after the conduct of the public information session under subsection 7c71 the ,secretary shall determine whether to conduct a formal hearing in accordance with part #ijj of title #g1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act74 7#b7 ,hearing to be conducted ,if the ,secretary determines under paragraph 7#a7 to conduct a formal hearing1 the ,secretary shall issue notice and conduct the hearing in accordance with part #ijj of title #g1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act74 7#c7 ,hearing not to be conducted ,if the ,secretary determines under paragraph 7#a7 not to conduct a formal hearing1 not later than #ij days after that determination1 the ,secretary shall submit to the ,committee on ,agriculture of the ,house of ,representatives and the ,committee on ,agriculture1 ,nutrition and ,forestry of the ,senate a written report that explains the basis for the decision4 7e7 ,proceeding with a hearing at any time ,consistent with the purposes of this section1 the ,secretary may dispense with the pre-hearing requirements of this section and initiate at any time a formal hearing under part #ijj of title #g1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act74 #adhb4 ,federal milk marketing orders ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall conduct hearings-- 7#a7 to analyze the implications of transitioning from a #d-;class system for milk products to a #b-;class system2 7#b7 to explore methods to improve signals for price discovery in the short- and long-term to allow dairy producers to better use risk management tools2 and 7#c7 to assess whether a #b-;class competitive pay pricing system for milk products would be more or less transparent than the system in effect as of the day before the date of enactment of this ,act4 ,v ,effective date #adia4 ,effective date ,except as otherwise provided in this subtitle1 this subtitle and the amendments made by this subtitle take effect on ,october #a1 #bjab4