,,ii  #aac? ,,congress  #a/ ,session    
,s4 #fje  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,m>* #ai1 #bjac ,mrs4  
,gillibr& introduc$ ! foll[+ bill2 :i* 0
 read twice & ref]r$ to ! ,committee on 
,agriculture1 ,nutrition1 & ,=e/ry  ,a  
,,bill  ,to improve ,f$]al dairy        
programs4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,dairy ,income ,fairness   
,act ( #bjac4  #b4 ,def9ition (         
,secret>y ,9 ?is ,act1 ! t]m ,secret>y  
means ! ,secret>y ( ,agriculture4  ,d   
,dairy  ,i ,dairy production m>g9       
protection & dairy m>ket /abilization   
programs  #adja4 ,def9itions ,9 ?is "p3 
7#a7 ,actual dairy production m>g9 ,!   
t]m actual dairy production m>g9 means !
 diff]5ce betwe5 ! all-milk price & !   
av]age fe$ co/1 z calculat$ "u section  
#adjb4  7#b7 ,all-milk price ,! t]m     
all-milk price means ! av]age price     
receiv$1 p] hundr$weight ( milk1 by     
dairy op]ations = all milk sold to      
plants & deal]s 9 ! ,unit$ ,/ates1 z    
det]m9$ by ! ,secret>y4  7#c7 ,annual   

production hi/ory ,! t]m annual         
production hi/ory means ! production    
hi/ory det]m9$ = a p>ticipat+ dairy     
op]ation "u section #adac7;b7 :5ev] !   
p>ticipat+ dairy op]ation pur*ases      
supplem5tal production m>g9 protection4 
7#d7 ,av]age fe$ co/ ,! t]m av]age fe$  
co/ means ! av]age co/ ( fe$ us$ by a   
dairy op]ation to produce a hundr$weight
 ( milk1 det]m9$ "u section #adjb us+ ! 
sum ( ! foll[+3  7,a7 ,! product det]m9$
 by multiply+ #a4jgbh by ! price ( corn 
p] bu%el4  7,b7 ,! product det]m9$ by   
multiply+ #j4jjgce by ! price ( soybean 
meal p] ton4  7,c7 ,! product det]m9$ by
 multiply+ #j4jacg by ! price ( alfalfa 
hay p] ton4  7#e7 ,basic production     
hi/ory ,! t]m basic production hi/ory   
means ! production hi/ory det]m9$ = a   
p>ticipat+ dairy op]ation "u section    
#adac7;a7 = provision ( basic production
 m>g9 protection4  7#f7 ,consecutive    
#b-mon? p]iod ,! t]m consecutive #b-mon?
 p]iod ref]s to ! #b-mon? p]iod consi/+ 
( ! mon?s ( ,janu>y & ,febru>y1 ,m>* &  

,april1 ,may & ,june1 ,july & ,augu/1   
,septemb] & ,octob]1 or ,novemb] &      
,decemb]1 respectively4  7#g7 ,dairy    
op]ation  7,a7 ,9 g5]al ,! t]m dairy    
op]ation means1 z det]m9$ by !          
,secret>y1 #a or m dairy produc]s t     
produce & m>ket milk z a s+le dairy     
op]ation 9 :i* ea* dairy produc]--  7i7 
%>es 9 ! pool+ ( res\rces & a common    
own]%ip /ructure2  7ii7 is at risk 9 !  
production ( milk on ! dairy op]ation2 &
  7iii7 contributes l&1 labor1          
managem5t1 equipm5t1 or capital to !    
dairy op]ation4  7,b7 ,additional       
own]%ip /ructures ,! ,secret>y %all     
det]m9e additional own]%ip /ructures to 
be cov]$ by ! def9ition ( dairy         
op]ation4  7#h7 ,h&l]  7,a7 ,9 g5]al ,! 
t]m h&l] means ! initial individual or  
entity mak+ paym5t to a dairy op]ation =
 milk produc$ 9 ! ,unit$ ,/ates & m>ket$
 = comm]cial use4  7,b7 ,produc]-h&l] ,!
 t]m includes a produc]-h&l] :5 !       
produc] satisfies ! def9ition 9         
subp>agraph 7,a74  7#i7 ,p>ticipat+     

dairy op]ation ,! t]m p>ticipat+ dairy  
op]ation means a dairy op]ation t--     
7,a7 signs up "u section #adab to       
p>ticipate 9 ! production m>g9          
protection program "u subp>t ,a2 &  7,b7
 z a result1 also p>ticipates 9 !       
/abilization program "u subp>t ,b4      
7#aj7 ,production m>g9 protection       
program ,! t]m production m>g9          
protection program means ! dairy        
production m>g9 protection program      
requir$ by subp>t ,a4  7#aa7 ,secret>y  
,! t]m ,secret>y means ! ,secret>y (    
,agriculture4  7#ab7 ,/abilization      
program ,! t]m /abilization program     
means ! dairy m>ket /abilization program
 requir$ by subp>t ,b = all p>ticipat+  
dairy op]ations4  7#ac7 ,/abilization   
program base ,! t]m /abilization program
 base1 ) respect to a p>ticipat+ dairy  
op]ation1 means ! /abilization program  
base calculat$ = ! p>ticipat+ dairy     
op]ation "u section #adca7;b74  7#ad7   
,unit$ ,/ates ,! t]m ,unit$ ,/ates1 9 a 
geographical s5se1 means ! #ej ,/ates1 !

 ,di/rict ( ,columbia1 ,am]ican ,samoa1 
,guam1 ! ,commonweal? ( ! ,nor!rn       
,m>iana ,isl&s1 ! ,commonweal? ( ,pu]to 
,rico1 ! ,virg9 ,isl&s ( ! ,unit$       
,/ates1 & any o!r t]ritory or possession
 ( ! ,unit$ ,/ates4  #adjb4 ,calculation
 ( av]age fe$ co/ & actual dairy        
production m>g9s  7a7 ,calculation (    
av]age fe$ co/ ,! ,secret>y %all        
calculate ! national av]age fe$ co/ =   
ea* mon? us+ ! foll[+ data3  7#a7 ,!    
price ( corn = a mon? %all be ! price   
receiv$ dur+ t mon? by f>m]s 9 ! ,unit$ 
,/ates = corn1 z report$ 9 ! mon?ly     
,agricultural ,prices report by !       
,secret>y4  7#b7 ,! price ( soybean meal
 = a mon? %all be ! c5tral ,ill9ois     
price = soybean meal1 z report$ 9 !     
,m>ket ,news-,mon?ly ,soybean ,meal     
,price ,report by ! ,secret>y4  7#c7 ,! 
price ( alfalfa hay = a mon? %all be !  
price receiv$ dur+ t mon? by f>m]s 9 !  
,unit$ ,/ates = alfalfa hay1 z report$ 9
 ! mon?ly ,agricultural ,prices report  
by ! ,secret>y4  7b7 ,calculation (     

actual dairy production m>g9s  7#a7     
,production m>g9 protection program ,=  
use 9 ! production m>g9 protection      
program "u subp>t ,a1 ! ,secret>y %all  
calculate ! actual dairy production m>g9
 = ea* consecutive #b-mon? p]iod by     
subtract+--  7,a7 ! av]age fe$ co/ = t  
consecutive #b-mon? p]iod1 det]m9$ 9    
accordance ) subsection 7a72 f  7,b7 !  
all-milk price = t consecutive #b-mon?  
p]iod4  7#b7 ,/abilization program ,=   
use 9 ! /abilization program "u subp>t  
,b1 ! ,secret>y %all calculate ea* mon? 
! actual dairy production m>g9 = !      
prec$+ mon? by subtract+--  7,a7 !      
av]age fe$ co/ = t prec$+ mon?1 det]m9$ 
9 accordance ) subsection 7a72 f  7,b7 !
 all-milk price = t prec$+ mon?4  7#c7  
,"t = calculations ,! calculations      
requir$ by p>agraphs 7#a7 & 7#b7 %all be
 made z soon z practicable us+ ! full   
mon? price ( ! applicable ref]5ce mon?4 
,a ,dairy production m>g9 protection    
program  #adaa4 ,e/abli%m5t ( dairy     
production m>g9 protection program      

,effective n lat] ?an #abj days aft] !  
effective date ( ?is subtitle1 !        
,secret>y %all e/abli% & adm9i/] a dairy
 production m>g9 protection program "u  
:i* p>ticipat+ dairy op]ations are      
paid--  7#a7 basic production m>g9      
protection program paym5ts "u section   
#adad :5 actual dairy production m>g9s  
are less ?an ! ?re%old levels = su*     
paym5ts2 &  7#b7 supplem5tal production 
m>g9 protection program paym5ts "u      
section #adae if pur*as$ by a p>ticipat+
 dairy op]ation4  #adab4 ,p>ticipation (
 dairy op]ations 9 production m>g9      
protection program  7a7 ,eligibility    
,all dairy op]ations 9 ! ,unit$ ,/ates  
%all be eligible to p>ticipate 9 !      
production m>g9 protection program1     
except t a p>ticipat+ dairy op]ation    
%all be requir$ to regi/] ) ! ,secret>y 
be=e ! p>ticipat+ dairy op]ation may    
receive--  7#a7 basic production m>g9   
protection program paym5ts "u section   
#adad2 &  7#b7 if ! p>ticipat+ dairy    
op]ation pur*ases supplem5tal production

 m>g9 protection "u section #adae1      
supplem5tal production m>g9 protection  
program paym5ts "u su* section4  7b7    
,regi/ration process  7#a7 ,9 g5]al ,!  
,secret>y %all specify ! mann] & =m by  
:i* a p>ticipat+ dairy op]ation may     
regi/] to p>ticipate 9 ! production m>g9
 protection program4  7#b7 ,treatm5t (  
multiproduc] dairy op]ations ,if a      
p>ticipat+ dairy op]ation is op]at$ by m
 ?an #a dairy produc]1 all ( ! dairy    
produc]s ( ! p>ticipat+ dairy op]ation  
%all be treat$ z a s+le dairy op]ation =
 purposes (--  7,a7 regi/ration to      
receive basic production m>g9 protection
 & election to pur*ase supplem5tal      
production m>g9 protection2  7,b7 paym5t
 ( ! p>ticipation fee "u subsection 7d7 
& produc] premiums "u section #adae2 &  
7,c7 p>ticipation 9 ! /abilization      
program "u subtitle ,b4  7#c7 ,treatm5t 
( produc]s ) multiple dairy op]ations   
,if a dairy produc] op]ates #b or m     
dairy op]ations1 ea* dairy op]ation ( ! 
produc] %all sep>ately regi/] to receive

 basic production m>g9 protection &     
pur*ase supplem5tal production m>g9     
protection & only ^? dairy op]ations s  
regi/]$ %all be cov]$ by ! /abilization 
program4  7c7 ,"t = regi/ration  7#a7   
,exi/+ dairy op]ations ,dur+ ! #ae-mon? 
p]iod beg9n+ on ! date ( ! initiation ( 
! regi/ration p]iod = ! production m>g9 
protection program1 a dairy op]ation t  
is actively engag$ z ( su* date may     
regi/] ) ! ,secret>y--  7,a7 to receive 
basic production m>g9 protection2 &     
7,b7 if ! dairy op]ation elects1 to     
pur*ase supplem5tal production m>g9     
protection4  7#b7 ,new ,entrants ,a     
dairy produc] t has no exi/+ int]e/ 9 a 
dairy op]ation z ( ! date ( ! initiation
 ( ! regi/ration p]iod = ! production   
m>g9 protection program1 b t1 aft] su*  
date1 e/abli%es a new dairy op]ation1   
may regi/] ) ! ,secret>y dur+ ! #a-ye>  
p]iod beg9n+ on ! date on :i* ! dairy   
op]ation fir/ m>kets milk comm]cially-- 
7,a7 to receive basic production m>g9   
protection2 &  7,b7 if ! dairy op]ation 

elects1 to pur*ase supplem5tal          
production m>g9 protection4  7d7        
,transition f ,,milc to production m>g9 
protection  7#a7 ,def9ition ( transition
 p]iod ,9 ?is subsection1 ! t]m         
transition p]iod means ! p]iod dur+ :i* 
! milk income loss program e/abli%$ "u  
section #aejf ( ! ,food1 ,cons]vation1 &
 ,en]gy ,act ( #bjjh 7#g ,u4,s4,c4      
#hggc7 & ! production m>g9 protection   
program "u ?is subtitle are bo? 9       
exi/5ce4  7#b7 ,notice ( availability ,n
 lat] ?an #cj days aft] ! date (        
enactm5t ( ?is ,act1 ! ,secret>y %all   
publi% a notice 9 ! ,f$]al ,regi/] to   
in=m dairy op]ations ( ! availability ( 
basic production m>g9 protection &      
supplem5tal production m>g9 protection1 
includ+ ! t]ms ( ! protection &         
in=mation ab\t ! option ( dairy         
op]ations dur+ ! transition p]iod to    
make an election describ$ 9 p>agraph    
7#c74  7#c7 ,election ,except z provid$ 
9 p>agraph 7#d71 a dairy op]ation may   
elect to p>ticipate 9 ei!r ! milk income

 loss program e/abli%$ "u section #aejf 
( ! ,food1 ,cons]vation1 & ,en]gy ,act (
 #bjjh 7#g ,u4,s4,c4 #hggc7 or !        
production m>g9 protection program "u   
?is subtitle = ! duration ( ! transition
 p]iod4  7#d7 ,transf] to production    
m>g9 protection ,a dairy op]ation t     
elects to p>ticipate 9 ! milk income    
loss program e/abli%$ "u section #aejf (
 ! ,food1 ,cons]vation1 & ,en]gy ,act ( 
#bjjh 7#g ,u4,s4,c4 #hggc7 dur+ !       
transition p]iod may1 at any "t1 make a 
p]man5t transf] to ! production m>g9    
protection program4  7e7 ,adm9i/ration  
fee  7#a7 ,adm9i/ration fee requir$     
,except z provid$ 9 p>agraph 7#e71 a    
p>ticipat+ dairy op]ation %all--  7,a7  
pay an adm9i/ration fee "u ?is          
subsection to regi/] to p>ticipate 9 !  
production m>g9 protection program2 &   
7,b7 pay ! adm9i/ration fee annually    
!reaft] to cont9ue to p>ticipate 9 !    
production m>g9 protection program4     
7#b7 ,fee am\nt ,! adm9i/ration fee = a 
p>ticipat+ dairy op]ation = a cal5d> ye>

 %all be bas$ on ! p\nds ( milk 79      
millions7 m>ket$ by ! p>ticipat+ dairy  
op]ation 9 ! previ\s cal5d> ye>1 z      
foll[s3  ,p\nds ,m>ket$ 79              
millions7,adm9i/ration ,fee  less ?an   
#aajj  #a to #e #bej  m ?an #e to #ajcej
  m ?an #aj to #dja1jjj  m ?an #djb1ejj4
  7#c7 ,deposit ( ,fees ,all            
adm9i/ration fees collect$ "u ?is       
subsection %all be cr$it$ to ! fund or  
acc\nt us$ to cov] ! co/s incurr$ to    
adm9i/] ! production m>g9 protection    
program & ! /abilization program & %all 
be available to ! ,secret>y1 )\t fur!r  
appropriation & until exp5d$1 = use or  
transf] z provid$ 9 p>agraph 7#d74  7#d7
 ,use ( ,fees ,! ,secret>y %all use     
adm9i/ration fees collect$ "u ?is       
subsection--  7,a7 to cov] adm9i/rative 
co/s ( ! production m>g9 protection     
program & /abilization program2 &  7,b7 
to cov] co/s ( ! ,dep>tm5t (            
,agriculture relat+ to report+ ( dairy  
m>ket news1 c>ry+ out ! am5dm5ts made by
 section #adgf1 & c>ry+ out section #bgc

 ( ! ,agricultural ,m>ket+ ,act ( #aidf 
7#g ,u4,s4,c4 #afcg;b71 to ! ext5t funds
 rema9 available aft] op]ation (        
subp>agraph 7,a74  7#e7 ,waiv] ,!       
,secret>y %all waive or r$uce !         
adm9i/ration fee requir$ "u p>agraph    
7#a7 9 ! case ( a limit$-res\rce dairy  
op]ation1 z def9$ by ! ,secret>y4  7f7  
,limitation ,a dairy op]ation may only  
p>ticipate 9 ! production m>g9          
protection program or ! live/ock gross  
m>g9 = dairy program "u ! ,f$]al ,crop  
,insurance ,act 7#g ,u4,s4,c4 #aeja et  
seq471 b n bo?4  #adac4 ,production     
hi/ory ( p>ticipat+ dairy op]ations  7a7
 ,production hi/ory = basic production  
m>g9 protection  7#a7 ,det]m9ation      
requir$ ,= purposes ( provid+ basic     
production m>g9 protection1 ! ,secret>y 
%all det]m9e ! basic production hi/ory (
 a p>ticipat+ dairy op]ation4  7#b7     
,calculation ,except z provid$ 9        
p>agraph 7#c71 ! basic production hi/ory
 ( a p>ticipat+ dairy op]ation = basic  
production m>g9 protection is equal to !

 highe/ annual milk m>ket+s ( !         
p>ticipat+ dairy op]ation dur+ any #a ( 
! #c cal5d> ye>s imm$iately prec$+ !    
cal5d> ye> 9 :i* ! p>ticipat+ dairy     
op]ation fir/ sign$ up to p>ticipate 9 !
 production m>g9 protection program4    
7#c7 ,election by new dairy op]ations ,9
 ! case ( a p>ticipat+ dairy op]ation t 
has be5 9 op]ation = less ?an a ye>1 !  
p>ticipat+ dairy op]ation %all elect #a 
( ! foll[+ me?ods = ! ,secret>y to      
det]m9e ! basic production hi/ory ( !   
p>ticipat+ dairy op]ation3  7,a7 ,!     
volume ( ! actual milk m>ket+s = ! mon?s
 ! p>ticipat+ dairy op]ation has be5 9  
op]ation extrapolat$ to a ye>ly am\nt4  
7,b7 ,an e/imate ( ! actual milk m>ket+s
 ( ! p>ticipat+ dairy op]ation bas$ on !
 h]d size ( ! p>ticipat+ dairy op]ation 
relative to ! national roll+ h]d av]age 
data publi%$ by ! ,secret>y4  7#d7 ,no  
*ange 9 production hi/ory = basic       
production m>g9 protection ,once ! basic
 production hi/ory ( a p>ticipat+ dairy 
op]ation is det]m9$ "u p>agraph 7#b7 or 

7#c71 ! basic production hi/ory %all n  
be subsequ5tly *ang$ = purposes (       
det]m9+ ! am\nt ( any basic production  
m>g9 protection paym5ts = ! p>ticipat+  
dairy op]ation made "u section #adad4   
7b7 ,annual production hi/ory =         
supplem5tal production m>g9 protection  
7#a7 ,det]m9ation requir$ ,= purposes ( 
provid+ supplem5tal production m>g9     
protection = a p>ticipat+ dairy op]ation
 t pur*ases supplem5tal production m>g9 
protection = a ye> "u section #adae1 !  
,secret>y %all det]m9e ! annual         
production hi/ory ( ! p>ticipat+ dairy  
op]ation "u p>agraph 7#b74  7#b7        
,calculation ,! annual production hi/ory
 ( a p>ticipat+ dairy op]ation = a ye>  
is equal to ! actual milk m>ket+s ( !   
p>ticipat+ dairy op]ation dur+ ! prec$+ 
cal5d> ye>4  7#c7 ,new dairy op]ations  
,subsection 7a77#c7 %all apply ) respect
 to det]m9+ ! annual production hi/ory (
 a p>ticipat+ dairy op]ation t has be5 9
 op]ation = less ?an a ye>4  7c7        
,requir$ in=mation ,a p>ticipat+ dairy  

op]ation %all provide all in=mation t ! 
,secret>y may require 9 ord] to         
e/abli%--  7#a7 ! basic production      
hi/ory ( ! p>ticipat+ dairy op]ation "u 
subsection 7a72 &  7#b7 ! production    
hi/ory ( ! p>ticipat+ dairy op]ation    
:5ev] ! p>ticipat+ dairy op]ation       
pur*ases supplem5tal production m>g9    
protection "u section #adae4  7d7       
,transf] ( production hi/ories  7#a7    
,transf] by sale or lease ,9 promulgat+ 
! rules to initiate ! production m>g9   
protection program1 ! ,secret>y %all    
specify ! conditions "u :i* & ! mann] by
 :i* ! production hi/ory ( a p>ticipat+ 
dairy op]ation may be transf]r$ by sale 
or lease4  7#b7 ,cov]age level  7,a7    
,basic production m>g9 protection ,a    
pur*as] or lessee to :om ! ,secret>y    
transf]s a basic production hi/ory "u   
?is subsection %all n obta9 a diff]5t   
level ( basic production m>g9 protection
 ?an ! basic production m>g9 protection 
cov]age held by ! sell] or lessor f :om 
! transf] 0 obta9$4  7,b7 ,supplem5tal  

production m>g9 protection ,a pur*as] or
 lessee to :om ! ,secret>y transf]s an  
annual production hi/ory "u ?is         
subsection %all n obta9 a diff]5t level 
( supplem5tal production m>g9 protection
 cov]age ?an ! supplem5tal production   
m>g9 protection cov]age 9 effect = !    
sell] or lessor f :om ! transf] 0 obta9$
 = ! cal5d> ye> 9 :i* ! transf] 0 made4 
7e7 ,movem5t & transf] ( production     
hi/ory  7#a7 ,movem5t & transf] au?oriz$
 ,subject to p>agraph 7#b71 if a        
p>ticipat+ dairy op]ation moves f "o    
location to ano!r location1 ! p>ticipat+
 dairy op]ation may transf] ! basic     
production hi/ory & annual production   
hi/ory associat$ ) ! p>ticipat+ dairy   
op]ation4  7#b7 ,notification requirem5t
 ,a p>ticipat+ dairy op]ation %all      
notify ! ,secret>y ( any move ( a       
p>ticipat+ dairy op]ation "u p>agraph   
7#a74  7#c7 ,subsequ5t occupation (     
vacat$ location ,a p>ty subsequ5tly     
occupy+ a p>ticipat+ dairy op]ation     
location vacat$ z describ$ 9 p>agraph   

7#a7 %all h no int]e/ 9 ! basic         
production hi/ory or annual production  
hi/ory previ\sly associat$ ) !          
p>ticipat+ dairy op]ation at su*        
location4  #adad4 ,basic production m>g9
 protection  7a7 ,paym5t ?re%old ,!     
,secret>y %all make a paym5t to         
p>ticipat+ dairy op]ations 9 accordance 
) subsection 7b7 :5ev] ! av]age actual  
dairy production m>g9 = a consecutive   
#b-mon? p]iod is less ?an #d4jj p]      
hundr$weight ( milk4  7b7 ,basic        
production m>g9 protection paym5t ,!    
basic production m>g9 protection paym5t 
= a p>ticipat+ dairy op]ation = a       
consecutive #b-mon? p]iod %all be equal 
to ! product obta9$ by multiply+--  7#a7
 ! diff]5ce betwe5 ! av]age actual dairy
 production m>g9 = ! consecutive #b-mon?
 p]iod & #d4jj1 except t1 if ! diff]5ce 
is m ?an #d4jj1 ! ,secret>y %all use    
#d4jj2 by  7#b7 ! less] (--  7,a7 #hj   
p]c5t ( ! production hi/ory ( !         
p>ticipat+ dairy op]ation1 divid$ by #f2
 or  7,b7 ! actual quantity ( milk      

m>ket$ by ! p>ticipat+ dairy op]ation   
dur+ ! consecutive #b-mon? p]iod4       
#adae4 ,supplem5tal production m>g9     
protection  7a7 ,election ( supplem5tal 
production m>g9 protection ,a p>ticipat+
 dairy op]ation may annually pur*ase    
supplem5tal production m>g9 protection  
to protect1 dur+ ! cal5d> ye> = :i*     
pur*as$1 a high] level ( ! income ( a   
p>ticipat+ dairy op]ation ?an ! income  
level gu>ante$ by basic production m>g9 
protection "u section #adad4  7b7       
,selection ( paym5t ?re%old ,a          
p>ticipat+ dairy op]ation pur*as+       
supplem5tal production m>g9 protection =
 a ye> %all elect a cov]age level t is  
high]1 9 any increm5t ( #j4ej1 ?an !    
paym5t ?re%old = basic production m>g9  
protection specifi$ 9 section #adad7;a71
 b n to exce$ #h4jj4  7c7 ,cov]age      
p]c5tage ,a p>ticipat+ dairy op]ation   
pur*as+ supplem5tal production m>g9     
protection = a ye> %all elect a p]c5tage
 ( cov]age equal to n m ?an #ij p]c5t1  
nor less ?an #be p]c5t1 ( ! annual      

production hi/ory ( ! p>ticipat+ dairy  
op]ation4  7d7 ,premiums = supplem5tal  
production m>g9 protection  7#a7        
,premiums requir$ ,a p>ticipat+ dairy   
op]ation t pur*ases supplem5tal         
production m>g9 protection %all pay an  
annual premium equal to ! product obta9$
 by multiply+--  7,a7 ! cov]age p]c5tage
 elect$ by ! p>ticipat+ dairy op]ation  
"u subsection 7c72  7,b7 ! annual       
production hi/ory ( ! p>ticipat+ dairy  
op]ation2 &  7,c7 ! premium p]          
hundr$weight ( milk1 z specifi$ 9 !     
applicable table "u p>agraph 7#b7 or    
7#c74  7#b7 ,premium p] hundr$weight =  
fir/ #d million p\nds ( production ,= ! 
fir/ #d1jjj1jjj p\nds ( milk m>ket+s    
includ$ 9 ! annual production hi/ory ( a
 p>ticipat+ dairy op]ation1 ! premium p]
 hundr$weight correspond+ to ea* cov]age
 level specifi$ 9 ! foll[+ table is z   
foll[s3  ,cov]age ,level,premium p]     
,cwt4  #f4ejj4jj  #g4jjj4dj  #g4ejj4fj  
#h4jjj4ie4  7#c7 ,premium p]            
hundr$weight = production 9 excess ( #d 

million p\nds ,= milk m>ket+s 9 excess (
 #d1jjj1jjj p\nds includ$ 9 ! annual    
production hi/ory ( a p>ticipat+ dairy  
op]ation1 ! premium p] hundr$weight     
correspond+ to ea* cov]age level is z   
foll[s3  ,cov]age ,level,premium p]     
,cwt4  #d4ejj4jb  #e4jjj4jd  #e4ejj4aj  
#f4jjj4ae  #f4ejj4bi  #g4jjj4fb         
#g4ejj4hc  #h4jja4jf4  7#d7 ,"t = paym5t
 ,9 promulgat+ ! rules to initiate !    
production m>g9 protection program1 !   
,secret>y %all provide m ?an #a me?od by
 :i* a p>ticipat+ dairy op]ation t      
pur*ases supplem5tal production m>g9    
protection = a cal5d> ye> may pay !     
premium "u ?is subsection = t ye> 9 any 
mann] t maximizes p>ticipat+ dairy      
op]ation paym5t flexibility & program   
integrity4  7e7 ,premium obligations    
7#a7 ,pro-ration ( premium = new dairy  
op]ations ,a p>ticipat+ dairy op]ation  
describ$ 9 section #adab7;c77#b7 t      
pur*ases supplem5tal production m>g9    
protection = a cal5d> ye> aft] ! />t ( !
 cal5d> ye> %all pay a pro-rat$ premium 

= t cal5d> ye> bas$ on ! portion ( !    
cal5d> ye> = :i* ! p>ticipat+ dairy     
op]ation pur*ases ! cov]age4  7#b7      
,legal obligation ,a p>ticipat+ dairy   
op]ation t pur*ases supplem5tal         
production m>g9 protection = a cal5d>   
ye> %all be legally obligat$ to pay !   
applicable premium = t cal5d> ye>1      
except t ! ,secret>y may waive t        
obligation1 "u t]ms & conditions det]m9$
 by ! ,secret>y1 = #a or m produc]s 9   
any p>ticipat+ dairy op]ation 9 ! case (
 dea?1 retirem5t1 p]man5t dissolution ( 
a p>ticipat+ dairy op]ation1 or o!r     
circum/ances z ! ,secret>y consid]s     
appropriate to ensure ! integrity ( !   
program4  7f7 ,supplem5tal paym5t       
?re%old ,a p>ticipat+ dairy op]ation )  
supplem5tal production m>g9 protection  
%all receive a supplem5tal production   
m>g9 protection paym5t :5ev] ! av]age   
actual dairy production m>g9 = a        
consecutive #b-mon? p]iod is less ?an ! 
cov]age level ?re%old select$ by !      
p>ticipat+ dairy op]ation "u subsection 

7b74  7g7 ,supplem5tal production m>g9  
protection paym5ts  7#a7 ,9 g5]al ,!    
supplem5tal production m>g9 protection  
paym5t = a p>ticipat+ dairy op]ation is 
9 addition to ! basic production m>g9   
protection paym5t4  7#b7 ,am\nt ( paym5t
 ,! supplem5tal production m>g9         
protection paym5t = ! p>ticipat+ dairy  
op]ation %all be det]m9$ z foll[s3  7,a7
 ,! ,secret>y %all calculate ! diff]5ce 
betwe5 ! cov]age level ?re%old select$  
by ! p>ticipat+ dairy op]ation "u       
subsection 7b7 & ! great] (--  7i7 !    
av]age actual dairy production m>g9 = ! 
consecutive #b-mon? p]iod2 or  7ii7     
#d4jj4  7,b7 ,! am\nt det]m9$ "u        
subp>agraph 7,a7 %all be multipli$ by ! 
p]c5tage select$ by ! p>ticipat+ dairy  
op]ation "u subsection 7c7 & by ! less] 
( ! foll[+3  7i7 ,! annual production   
hi/ory ( ! p>ticipat+ dairy op]ation1   
divid$ by #f4  7ii7 ,! actual am\nt (   
milk m>ket$ by ! p>ticipat+ dairy       
op]ation dur+ ! consecutive #b-mon?     
p]iod4  #adaf4 ,effect ( failure to pay 

adm9i/ration fees or premiums  7a7 ,loss
 ( b5efits ,a p>ticipat+ dairy op]ation 
t fails to pay ! requir$ adm9i/ration   
fee "u section #adab or is 9 arre>s on  
premium paym5ts = supplem5tal production
 m>g9 protection "u section #adae--     
7#a7 rema9s legally obligat$ to pay !   
adm9i/ration fee or premiums1 z ! case  
may be2 &  7#b7 may n receive basic     
production m>g9 protection paym5ts or   
supplem5tal production m>g9 protection  
paym5ts until ! fees or premiums are    
fully paid4  7b7 ,en=cem5t ,! ,secret>y 
may take su* action z necess>y to       
collect adm9i/ration fees & premium     
paym5ts = supplem5tal production m>g9   
protection4  ,b ,dairy m>ket            
/abilization program  #adca4 ,e/abli%m5t
 ( dairy m>ket /abilization program  7a7
 ,program requir$2 purpose ,effective n 
lat] ?an #abj days aft] ! effective date
 ( ?is subtitle1 ! ,secret>y %all       
e/abli% & adm9i/] a dairy m>ket         
/abilization program applicable to      
p>ticipat+ dairy op]ations = ! purpose (

 assi/+ 9 balanc+ ! supply ( milk ) dem&
 :5 p>ticipat+ dairy op]ations are      
exp]i5c+ l[ or negative op]at+ m>g9s4   
7b7 ,election ( /abilization program    
base calculation me?od  7#a7 ,election  
,:5 a dairy op]ation signs up "u section
 #adab to p>ticipate 9 ! production m>g9
 protection program1 ! dairy op]ation   
%all in=m ! ,secret>y ( ! me?od by :i* !
 /abilization program base = !          
p>ticipat+ dairy op]ation w be calculat$
 "u p>agraph 7#c74  7#b7 ,*ange 9       
calculation me?od ,a p>ticipat+ dairy   
op]ation may *ange ! /abilization       
program base calculation me?od to be us$
 = a cal5d> ye> by notify+ ! ,secret>y (
 ! *ange n lat] ?an a date det]m9$ by ! 
,secret>y4  7#c7 ,calculation me?ods ,a 
p>ticipat+ dairy op]ation may elect ei!r
 ( ! foll[+ me?ods = calculation ( !    
/abilization program base = ! p>ticipat+
 dairy op]ation3  7,a7 ,! volume ( !    
av]age mon?ly milk m>ket+s ( !          
p>ticipat+ dairy op]ation = ! #c mon?s  
imm$iately prec$+ ! ann\ncem5t by !     

,secret>y t ! /abilization program w    
become effective4  7,b7 ,! volume ( !   
mon?ly milk m>ket+s ( ! p>ticipat+ dairy
 op]ation = ! same mon? 9 ! prec$+ ye> z
 ! mon? = :i* ! ,secret>y has ann\nc$ ! 
/abilization program w become effective4
  7#d7 ,exemption ,! /abilization       
program base = a p>ticipat+ dairy       
produc] %all n include ! fir/ #d1jjj1jjj
 p\nds ( production ( ! p>ticipat+ dairy
 produc] p] cal5d> ye>1 z det]m9$ by !  
,secret>y4  #adcb4 ,?re%old =           
implem5tation & r$uction 9 dairy paym5ts
  7a7 ,:5 /abilization program requir$  
,except z provid$ 9 subsection 7b71 !   
,secret>y %all ann\nce t ! /abilization 
program is 9 effect & ord] r$uc$ paym5ts
 by h&l]s to p>ticipat+ dairy op]ations 
t exce$ ! applicable p]c5tage ( !       
p>ticipat+ dairy op]ation's /abilization
 program base :5ev]--  7#a7 ! actual    
dairy production m>g9 has be5 #f4jj or  
less p] hundr$weight ( milk = ea* ( !   
imm$iately prec$+ #b mon?s2 or  7#b7 !  
actual dairy production m>g9 has be5    

#d4jj or less p] hundr$weight ( milk = !
 imm$iately prec$+ mon?4  7b7 ,exception
 ,if any ( ! conditions describ$ 9      
section #adcf7;b7 h be5 met dur+ !      
#b-mon? p]iod imm$iately prec$+ ! mon? 9
 :i* ! ann\ncem5t "u subsection 7a7 w\ld
 o!rwise be made by ! ,secret>y 9 !     
abs5ce ( ?is exception1 ! ,secret>y     
%all--  7#a7 susp5d ! /abilization      
program2  7#b7 refra9 f mak+ !          
ann\ncem5t "u subsection 7a7 to implem5t
 ord] ! /abilization paym5t2 or  7#c7   
ord] r$uc$ paym5ts4  7c7 ,effective date
 = implem5tation ( paym5t r$uctions     
,r$uctions 9 dairy paym5ts %all comm5ce 
beg9n+ on ! fir/ day ( ! mon? imm$iately
 foll[+ ! date ( ! ann\ncem5t by !      
,secret>y "u subsection 7a74  #adcc4    
,milk m>ket+s in=mation  7a7 ,collection
 ( milk m>ket+ data ,! ,secret>y %all   
e/abli%1 by regulation1 a process to    
collect f p>ticipat+ dairy op]ations &  
h&l]s su* in=mation t ! ,secret>y       
consid]s necess>y = ea* mon? dur+ :i* ! 
/abilization program is 9 effect4  7b7  

,r$uce regulatory burd5 ,:5 implem5t+ ! 
process "u subsection 7a71 ! ,secret>y  
%all m9imize ! regulatory burd5 on      
p>ticipat+ dairy op]ations & h&l]s4     
#adcd4 ,calculation & collection ( r$uc$
 dairy op]ation paym5ts  7a7 ,r$uc$     
p>ticipat+ dairy op]ation paym5ts       
requir$ ,dur+ any mon? 9 :i* paym5t     
r$uctions are 9 effect "u ! /abilization
 program1 ea* h&l] %all r$uce paym5ts to
 ea* p>ticipat+ dairy op]ation f :om !  
h&l] receives milk4  7b7 ,r$uctions bas$
 on actual dairy production m>g9  7#a7  
,r$uction requirem5t #a ,if ! ,secret>y 
det]m9es t ! av]age actual dairy        
production m>g9 has be5 less ?an #f4jj b
 great] ?an #e4jj p] hundr$weight ( milk
 = #b consecutive mon?s1 ! h&l] %all    
make paym5ts to a p>ticipat+ dairy      
op]ation = a mon? bas$ on ! great] ( !  
foll[+3  7,a7 #ih p]c5t ( ! /abilization
 program base ( ! p>ticipat+ dairy      
op]ation4  7,b7 #id p]c5t ( ! m>ket+s ( 
milk = ! mon? by ! p>ticipat+ dairy     
op]ation4  7#b7 ,r$uction requirem5t #b 

,if ! ,secret>y det]m9es t ! av]age     
actual dairy production m>g9 has be5    
less ?an #e4jj b great] ?an #d4jj = #b  
consecutive mon?s1 ! h&l] %all make     
paym5ts to a p>ticipat+ dairy op]ation =
 a mon? bas$ on ! great] ( ! foll[+3    
7,a7 #ig p]c5t ( ! /abilization program 
base ( ! p>ticipat+ dairy op]ation4     
7,b7 #ic p]c5t ( ! m>ket+s ( milk = !   
mon? by ! p>ticipat+ dairy op]ation4    
7#c7 ,r$uction requirem5t #c ,if !      
,secret>y det]m9es t ! av]age actual    
dairy production m>g9 has be5 #d4jj or  
less = any #a mon?1 ! h&l] %all make    
paym5ts to a p>ticipat+ dairy op]ation =
 a mon? bas$ on ! great] ( ! foll[+3    
7,a7 #if p]c5t ( ! /abilization program 
base ( ! p>ticipat+ dairy op]ation4     
7,b7 #ib p]c5t ( ! m>ket+s ( milk = !   
mon? by ! p>ticipat+ dairy op]ation4    
7c7 ,cont9uation ( r$uctions ,! l>ge/   
level ( paym5t r$uction requir$ "u      
p>agraph 7#a71 7#b71 or 7#c7 (          
subsection 7b7 %all be cont9u$ = ea*    
mon? until ! ,secret>y susp5ds !        

/abilization program & t]m9ates paym5t  
r$uctions 9 accordance ) section #adcf4 
7d7 ,paym5t r$uction exception ,not)/&+ 
any prec$+ subsection ( ?is section1 a  
h&l] %all make no paym5t r$uctions = a  
p>ticipat+ dairy op]ation = a mon? if ! 
p>ticipat+ dairy op]ation's milk m>ket+s
 = ! mon? are equal to or less ?an !    
p]c5tage ( ! /abilization program base  
applicable to ! p>ticipat+ dairy        
op]ation "u p>agraph 7#a71 7#b71 or 7#c7
 ( subsection 7b74  #adce4 ,remitt+     
funds to ! ,secret>y & use ( funds  7a7 
,remitt+ funds ,z soon z practicable    
aft] ! end ( ea* mon? dur+ :i* paym5t   
r$uctions are 9 effect "u ! /abilization
 program1 ea* h&l] %all remit to !      
,secret>y an am\nt equal to ! am\nt by  
:i* paym5ts to p>ticipat+ dairy         
op]ations are r$uc$ by ! h&l] "u section
 #adcd4  7b7 ,deposit ( remitt$ funds   
,all funds receiv$ "u subsection 7a7    
%all be available to ! ,secret>y1 )\t   
fur!r appropriation & until exp5d$1 =   
use or transf] z provid$ 9 subsection   

7c74  7c7 ,use ( funds  7#a7            
,availability = c]ta9 commodity         
donations ,n lat] ?an #ij days aft] !   
funds describ$ 9 subsection 7a7 are due 
z det]m9$ by ! ,secret>y1 ! ,secret>y   
%all obligate ! funds = ! purpose (--   
7,a7 pur*as+ dairy products = donation  
to food banks & o!r programs t !        
,secret>y det]m9es appropriate2 &  7,b7 
exp&+ consumption & build+ dem& = dairy 
products4  7#b7 ,no duplication ( ef=t  
,! ,secret>y %all ensure t exp5ditures  
"u p>agraph 7#a7 are compatible )1 & d n
 duplicate1 programs support$ by ! dairy
 rese>* & promotion activities conduct$ 
"u ! ,dairy ,production ,/abilization   
,act ( #aihc 7#g ,u4,s4,c4 #deja et     
seq474  7#c7 ,acc\nt+ ,! ,secret>y %all 
keep an accurate acc\nt ( all funds     
exp5d$ "u p>agraph 7#a74  7d7 ,annual   
,report ,n lat] ?an ,decemb] #ca ( ea*  
ye> t ! /abilization program is 9       
effect1 ! ,secret>y %all submit to !    
,committee on ,agriculture ( ! ,h\se (  
,repres5tatives & ! ,committee on       

,agriculture1 ,nutrition1 & ,=e/ry ( !  
,s5ate a report t provides an accurate  
acc\nt+ (--  7#a7 ! funds receiv$ by !  
,secret>y dur+ ! prec$+ fiscal ye> "u   
subsection 7a72  7#b7 all exp5ditures   
made by ! ,secret>y "u subsection 7b7   
dur+ ! prec$+ fiscal ye>2 &  7#c7 !     
impact ( ! /abilization program on dairy
 m>kets4  7e7 ,en=cem5t ,if a p>ticipat+
 dairy op]ation or h&l] fails to remit  
or collect ! am\nts by :i* paym5ts to   
p>ticipat+ dairy op]ations are r$uc$ "u 
section #adcd1 ! p>ticipat+ dairy       
op]ation or h&l] responsible = ! failure
 %all be liable to ! ,secret>y = ! am\nt
 t %\ld h be5 remitt$ or collect$1 plus 
int]e/4 ,9 addition to ! en=cem5t       
au?orities available "u section #adcg1 !
 ,secret>y may en=ce ?is subsection 9 ! 
c\rts ( ! ,unit$ ,/ates4  #adcf4        
,susp5sion ( r$uc$ paym5t requirem5t    
7a7 ,det]m9ation ( prices ,= purposes ( 
?is section3  7#a7 ,! price 9 ! ,unit$  
,/ates = *$d> *eese & nonfat dry milk   
%all be det]m9$ by ! ,secret>y4  7#b7 ,!

 _w price ( *$d> *eese & skim milk p[d] 
%all be det]m9$ by ! ,secret>y4  7b7    
,susp5sion ?re%olds ,! /abilization     
program %all be susp5d$ or ! ,secret>y  
%all refra9 f mak+ ! ann\ncem5t "u      
section #adcb7;a7 if ! ,secret>y        
det]m9es t--  7#a7 ! actual dairy       
production m>g9 is great] ?an #f4jj p]  
hundr$weight ( milk = #b consecutive    
mon?s2  7#b7 ! actual dairy production  
m>g9 is equal to or less ?an #f4jj 7b   
great] ?an #e4jj7 = #b consecutive      
mon?s1 & dur+ ! same #b consecutive     
mon?s--  7,a7 ! price 9 ! ,unit$ ,/ates 
= *$d> *eese is equal to or great] ?an !
 _w price ( *$d> *eese2 or  7,b7 ! price
 9 ! ,unit$ ,/ates = nonfat dry milk is 
equal to or great] ?an ! _w price ( skim
 milk p[d]2  7#c7 ! actual dairy        
production m>g9 is equal to or less ?an 
#e4jj 7b great] ?an #d4jj7 = #b         
consecutive mon?s1 & dur+ ! same #b     
consecutive mon?s--  7,a7 ! price 9 !   
,unit$ ,/ates = *$d> *eese is m ?an #e  
p]c5t above ! _w price ( *$d> *eese2 or 

7,b7 ! price 9 ! ,unit$ ,/ates = nonfat 
dry milk is m ?an #e p]c5t above ! _w   
price ( skim milk p[d]2 or  7#d7 !      
actual dairy production m>g9 is equal to
 or less ?an #d4jj = #b consecutive     
mon?s1 & dur+ ! same #b consecutive     
mon?s--  7,a7 ! price 9 ! ,unit$ ,/ates 
= *$d> *eese is m ?an #g p]c5t above !  
_w price ( *$d> *eese2 or  7,b7 ! price 
9 ! ,unit$ ,/ates = nonfat dry milk is m
 ?an #g p]c5t above ! _w price ( skim   
milk p[d]4  7c7 ,implem5tation by h&l]s 
,effective on ! day aft] ! date ( !     
ann\ncem5t by ! ,secret>y "u subsection 
7b7 ( ! susp5sion ( ! /abilization      
program1 ! h&l] %all cease r$uc+ paym5ts
 to p>ticipat+ dairy op]ations "u !     
/abilization program4  7d7 ,condition on
 resumption ( /abilization program ,^u !
 ann\ncem5t by ! ,secret>y "u subsection
 7b7 t ! /abilization program has be5   
susp5d$1 ! /abilization program may n be
 implem5t$ aga9 until1 at ! e>lie/--    
7#a7 #b mon?s h pass$1 beg9n+ on ! fir/ 
day ( ! mon? imm$iately foll[+ !        

ann\ncem5t by ! ,secret>y2 &  7#b7 !    
conditions ( section #adcb7;a7 are aga9 
met4  #adcg4 ,en=cem5t  7a7 ,unlawful   
act ,x %all be unlawful & a violation ( 
! ?is subp>t = any p]son subject to !   
/abilization program to willfully fail  
or refuse to provide1 or delay ! timely 
report+ (1 accurate in=mation &         
remittance ( funds to ! ,secret>y 9     
accordance ) ?is subp>t4  7b7 ,ord]     
,aft] provid+ notice & opportunity = a  
he>+ to an affect$ p]son1 ! ,secret>y   
may issue an ord] aga9/ any p]son to    
cease & desi/ f cont9u+ any violation ( 
?is subp>t4  7c7 ,appeal ,an ord] ( !   
,secret>y "u subsection 7b7 %all be f9al
 & conclusive unless an affect$ p]son   
files an appeal ( ! ord] ( ! ,secret>y 9
 ,unit$ ,/ates di/rict c\rt n lat] ?an  
#cj days aft] ! date ( ! issuance ( !   
ord]4 ,a f9d+ ( ! ,secret>y 9 ! ord]    
%all be set aside only if ! f9d+ is n   
support$ by sub/antial evid5ce4  7d7    
,noncompliance ) ord] ,if a p]son       
subject to ?is subp>t fails to obey an  

ord] issu$ "u subsection 7b7 aft] ! ord]
 has become f9al & unappealable1 or aft]
 ! appropriate ,unit$ ,/ates di/rict    
c\rt has ent]$ a f9al judgm5t 9 favor ( 
! ,secret>y1 ! ,unit$ ,/ates may apply  
to ! appropriate ,unit$ ,/ates di/rict  
c\rt = en=cem5t ( ! ord]4 ,if ! c\rt    
det]m9es t ! ord] 0 lawfully made & duly
 s]v$ & t ! p]son violat$ ! ord]1 ! c\rt
 %all en=ce ! ord]4  #adch4 ,audit      
requirem5ts  7a7 ,audits ( dairy        
op]ation & h&l] compliance  7#a7 ,audits
 au?oriz$ ,if det]m9$ by ! ,secret>y to 
be necess>y to ensure compliance by     
p>ticipat+ dairy op]ations & h&l]s ) !  
/abilization program1 ! ,secret>y may   
conduct p]iodic audits ( p>ticipat+     
dairy op]ations & h&l]s4  7#b7 ,sample (
 dairy op]ations ,any audit conduct$ "u 
?is subsection %all include1 at a       
m9imum1 inve/igation ( a /ati/ically    
valid & r&om sample ( p>ticipat+ dairy  
op]ations4  7b7 ,submission ( results ,!
 ,secret>y %all submit ! results ( any  
audit conduct$ "u subsection 7a7 to !   

,committee on ,agriculture ( ! ,h\se (  
,repres5tatives & ! ,committee on       
,agriculture1 ,nutrition1 & ,=e/ry ( !  
,s5ate & include su* recomm5dations z ! 
,secret>y consid]s appropriate reg>d+ ! 
/abilization program4  #adci4 ,/udy2    
report  7a7 ,9 g5]al ,! ,secret>y %all  
direct ! ,(fice ( ! ,*ief ,economi/ to  
conduct a /udy ( ! impacts ( ! program  
e/abli%$ "u section #adca7;a74  7b7     
,consid]ations ,! /udy conduct$ "u      
subsection 7a7 %all consid]--  7#a7 !   
economic impact ( ! program ?r\gh\t !   
dairy product value *a91 includ+ !      
impact on produc]s1 processors1 dome/ic 
cu/om]s1 export cu/om]s1 actual m>ket   
gr[? & pot5tial m>ket gr[?1 f>ms (      
diff]5t sizes1 & diff]5t regions &      
,/ates2 &  7#b7 ! impact ( ! program on 
! competitiv5ess ( ! ,unit$ ,/ates dairy
 indu/ry 9 int]national m>kets4  7c7    
,report ,n lat] ?an ,decemb] #a1 #bjaf1 
! ,(fice ( ! ,*ief ,economi/ %all submit
 to ! ,committee on ,agriculture ( !    
,h\se ( ,repres5tatives & ! ,committee  

on ,agriculture1 ,nutrition1 & ,=e/ry ( 
! ,s5ate a report t describes ! results 
( ! /udy conduct$ "u subsection 7a74  ,c
 ,adm9i/ration  #adea4 ,duration ,!     
production m>g9 protection program & !  
/abilization program %all end on        
,decemb] #ca1 #bjag4  #adeb4            
,adm9i/ration & en=cem5t  7a7 ,9 g5]al  
,! ,secret>y %all promulgate regulations
 to address adm9i/rative & en=cem5t     
issues involv$ 9 c>ry+ out ! production 
m>g9 protection1 supplem5tal production 
m>g9 protection1 & m>ket /abilization   
programs4  7b7 ,recon/itution &         
eligibility issues  7#a7 ,recon/itution 
,us+ au?orities "u section #ajja7;f7 &  
#ajja;,b ( ! ,food ,security ,act (     
#aihe 7#g ,u4,s4,c4 #acjh7;f71 #acjh-b71
 ! ,secret>y %all promulgate regulations
 to prohibit a dairy produc] f          
recon/itut+ a dairy op]ation = ! sole   
purpose ( ! dairy produc]--  7,a7       
receiv+ basic m>g9 protection2  7,b7    
pur*as+ supplem5tal m>g9 protection2 or 
7,c7 avoid+ p>ticipation 9 ! m>ket      

/abilization program4  7#b7 ,eligibility
 issues ,us+ au?orities "u section      
#ajja7;f7 & #ajja;,b ( ! ,food ,security
 ,act ( #aihe 7#g ,u4,s4,c4 #acjh7;f71  
#acjh-b71 ! ,secret>y %all promulgate   
regulations--  7,a7 to prohibit a s*eme 
or device2  7,b7 to provide = equitable 
relief2 &  7,c7 to provide = o!r issues 
affect+ eligibility & liability issues4 
7#c7 ,adm9i/rative appeals ,us+         
au?orities "u section #ajja7;h7 ( !     
,food ,security ,act ( #aihe 7#g        
,u4,s4,c4 #acjh7;h77 & subtitle ,h ( !  
,dep>tm5t ( ,agriculture ,reorganization
 ,act 7#g ,u4,s4,c4 #fiia et seq471 !   
,secret>y %all promulgate regulations to
 provide = adm9i/rative appeals (       
decisions ( ! ,secret>y t are adv]se to 
p>ticipants ( ! programs describ$ 9     
subsection 7a74  ,,ii ,dairy m>ket      
transp>5cy  #adfa4 ,dairy product       
m&atory report+  7a7 ,def9itions        
,section #bgb7a77;,a7 ( ! ,agricultural 
,m>ket+ ,act ( #aidf 7#g ,u4,s4,c4      
#afcg;a7#a77;,a77 is am5d$ by ins]t+ 1  

or any o!r products t may significantly 
aid price discov]y 9 ! dairy m>kets1 z  
det]m9$ by ! ,secret>y aft] ( #aicg4    
7b7 ,m&atory report+ = dairy products   
,section #bgc7;b7 ( ! ,agricultural     
,m>ket+ ,act ( #aidf 7#g ,u4,s4,c4      
#afcg;b7b77 is am5d$--  7#a7 by /rik+   
p>agraph 7#a7 & ins]t+ ! foll[+ new     
p>agraph3  7#a7 ,9 g5]al ,9 e/abli%+ !  
program1 ! ,secret>y %all only--  7,a7  
7i7 subject to ! conditions describ$ 9  
p>agraph 7#b71 require ea* manufactur]  
to report to ! ,secret>y1 m frequ5tly   
?an once p] mon?1 in=mation conc]n+ !   
price1 quantity1 & moi/ure cont5t (     
dairy products sold by ! manufactur] &  
any o!r product *>act]i/ics t may       
significantly aid price discov]y 9 !    
dairy m>kets1 z det]m9$ by ! ,secret>y2 
&  7ii7 modify ! =mat us$ to provide !  
in=mation on ! day be=e ! date (        
enactm5t ( ?is subtitle to ensure t !   
in=mation c be readily und]/ood by m>ket
 p>ticipants2 &  7,b7 require ea*       
manufactur] & o!r p]son /or+ dairy      

products 7includ+ dairy products 9 cold 
/orage7 to report to ! ,secret>y1 m     
frequ5tly ?an once p] mon?1 in=mation on
 ! quantity ( dairy products /or$4  2 & 
7#b7 9 p>agraph 7#b71 by ins]t+ or ^? t 
may significantly aid price discov]y 9 !
 dairy m>kets aft] ,f$]al milk m>ket+   
ord] ea* place x appe>s 9 subp>agraphs  
7,a71 7,b71 & 7,c74  #adfb4 ,f$]al milk 
m>ket+ ord] in=mation  7a7 ,in=mation   
cle>+h\se  7#a7 ,9 g5]al ,! ,secret>y   
%all1 on behalf ( ea* milk m>ket+ ord]  
issu$ "u ! ,agricultural ,adju/m5t ,act 
7#g ,u4,s4,c4 #fja et seq471 re5act$ )  
am5dm5ts by ! ,agricultural ,m>ket+     
,agreem5t ,act ( #aicg1 e/abli% an      
in=mation cle>+h\se = ! purposes (      
educat+ ! public ab\t ! ,f$]al milk     
m>ket+ ord] sy/em & any m>ket+ ord]     
ref]5da1 includ+ proposal in=mation &   
timel9es t %all be kept curr5t & updat$ 
z in=mation becomes available4  7#b7    
,requirem5ts ,in=mation "u p>agraph 7#a7
 %all include--  7,a7 in=mation on      
proc$ures by :i* coop]atives vote2  7,b7

 if applicable1 in=mation on ! mann] by 
:i* produc]s may ca/ an individual      
ballot2  7,c7 9 applicable1 in/ructions 
on ! mann] 9 :i* to vote onl9e2  7,d7   
due dates = ea* specific ref]5dum2  7,e7
 ! text ( ea* ref]5dum "q "u            
consid]ation2  7,f7 a description 9 pla9
 language ( ! "q2  7,g7 any relevant    
backgr\nd in=mation to ! "q2 &  7,h7 any
 o!r in=mation t increases ,f$]al milk  
m>ket+ ord] transp>5cy4  7b7            
,notification li/ = upcom+ ref]5dum ,ea*
 ,f$]al milk m>ket+ ord] %all--  7#a7   
make available ! in=mation describ$ 9   
subsection 7b7 ?r\gh an ,int]net site2 &
  7#b7 publicize ! in=mation 9 major    
agriculture & dairy-specific            
publications on upcom+ ref]5da4  7c7    
,/udy  7#a7 ,9 g5]al ,! ,secret>y %all  
conduct a /udy ( ! feasibility (        
e/abli%+ #b classes ( milk1 a fluid     
class & a manufactur+ class1 to replace 
! #d-;class sy/em 9 effect on ! date (  
enactm5t ( ?is ,act 9 adm9i/]+ ,f$]al   
milk m>ket+ ord]s4  7#b7 ,f$]al ,milk   

,m>ket ,ord] ,review ,commission ,!     
,secret>y may elect to use ! ,f$]al     
,milk ,m>ket ,ord] ,review ,commission  
e/abli%$ "u section #aeji7;a7 ( ! ,food1
 ,cons]vation1 & ,en]gy ,act ( #bjjh    
7,public ,law #aaj-bdf2 #abb ,/at4      
#agbf71 or docum5ts ( ! ,commission1 to 
conduct all or "p ( ! /udy4  7#c7       
,report ,n lat] ?an #ahj days aft] !    
date ( enactm5t ( ?is ,act1 ! ,secret>y 
%all submit to ! ,committee on          
,agriculture ( ! ,h\se ( ,repres5tatives
 & ! ,committee on ,agriculture1        
,nutrition1 & ,=e/ry ( ! ,s5ate a report
 t describes ! results ( ! /udy requir$ 
"u ?is subsection1 includ+ any          
recomm5dations4  ,,iii ,repeal or       
reau?orization ( o!r dairy-relat$       
provisions  #adga4 ,repeal ( dairy      
product price support & milk income loss
 contract programs  7a7 ,repeal ( dairy 
product price support program ,section  
#aeja ( ! ,food1 ,cons]vation1 & ,en]gy 
,act ( #bjjh 7#g ,u4,s4,c4 #hgga7 is    
repeal$4  7b7 ,repeal ( milk income loss

 contract program  7#a7 ,paym5ts "u milk
 income loss contract program ,section  
#aejf7;c7 ( ! ,food1 ,cons]vation1 &    
,en]gy ,act ( #bjjh 7#g ,u4,s4,c4       
#hggc7;c77 is am5d$--  7,a7 9 p>agraph  
7#b77;,a71 by /rik+ #af4id & ins]t+     
#ah4he2 &  7,b7 9 p>agraph 7#c7--  7i7 9
 subp>agraph 7,a71 by ins]t+ & aft] !   
semicolon2  7ii7 9 subp>agraph 7,b71 by 
/rik+ ,augu/ #ca1 #bjac1 #de p]c5t2 & & 
ins]t+ on ! date t is #bgj days aft] !  
date ( enactm5t ( ! ,dairy ,income      
,fairness ,act ( #bjac1 #de p]c5t42 &   
7iii7 by /rik+ subp>agraph 7,c74  7#b7  
,ext5sion ,section #aejf7;h77#a7 ( !    
,food1 ,cons]vation1 & ,en]gy ,act (    
#bjjh 7#g ,u4,s4,c4 #hggc7;h77#a77 is   
am5d$ by /rik+ ,septemb] #cj1 #bjac &   
ins]t+ ! date t is #bgj days aft] ! date
 ( enactm5t ( ! ,dairy ,income ,fairness
 ,act ( #bjac4  7#c7 ,repeal ,effective 
on ! date t is #bga days aft] ! date (  
enactm5t ( ! ,dairy ,income ,fairness   
,act ( #bjac1 section #aejf ( ! ,food1  
,cons]vation1 & ,en]gy ,act ( #bjjh 7#g 

,u4,s4,c4 #hggc7 is repeal$4  #adgb4    
,repeal ( dairy export inc5tive program 
7a7 ,repeal ,section #aec ( ! ,food     
,security ,act ( #aihe 7#ae ,u4,s4,c4   
#gac;a-#ad7 is repeal$4  7b7 ,con=m+    
am5dm5ts ,section #ijb7b7 ( ! ,trade    
,sanctions ,re=m & ,export ,enhancem5t  
,act ( #bjjj 7#bb ,u4,s4,c4 #gbja7b77 is
 am5d$--  7#a7 by /rik+ subp>agraph     
7,d72 &  7#b7 by r$esignat+ subp>agraphs
 7,e7 & 7,f7 z subp>agraphs 7,d7 & 7,e71
 respectively4  #adgc4 ,ext5sion ( dairy
 =w>d pric+ program ,section #aejb7;e7 (
 ! ,food1 ,cons]vation1 & ,en]gy ,act ( 
#bjjh 7#g ,u4,s4,c4 #hggb7;e77 is       
am5d$--  7#a7 9 p>agraph 7#a71 by /rik+ 
#bjab & ins]t+ #bjag2 &  7#b7 9 p>agraph
 7#b71 by /rik+ #bjae & ins]t+ #bjbj4   
#adgd4 ,ext5sion ( dairy indemnity      
program ,section #c ( ,public ,law      
#ij-dhd 7#g ,u4,s4,c4 #dejl7 is am5d$ by
 /rik+ #bjab & ins]t+ #bjag4  #adge4    
,ext5sion ( dairy promotion & rese>*    
program ,section #aac7;e77#b7 ( ! ,dairy
 ,production ,/abilization ,act ( #aihc 

7#g ,u4,s4,c4 #dejd7;e77#b77 is am5d$ by
 /rik+ #bjab & ins]t+ #bjag4  #adgf4    
,ext5sion ( ,f$]al ,milk ,m>ket+ ,ord]  
,review ,commission ,section #aeji7;a7 (
 ! ,food1 ,cons]vation1 & ,en]gy ,act ( 
#bjjh 7,public ,law #aaj-bdf2 #abb ,/at4
 #agbf7 is am5d$ by ins]t+ or o!r funds 
aft] ,subject to ! availability (       
appropriations4  ,,iv ,f$]al milk m>ket+
 ord] re=m  #adha4 ,f$]al milk m>ket+   
ord] program pre-he>+ proc$ure = ,class 
,,iii pric+  7a7 ,9 g5]al ,! ,secret>y  
%all use ! pre-he>+ proc$ure describ$ 9 
?is section to det]m9e to conduct a he>+
 to consid] alt]native =mulas = ,class  
,,iii milk product pric+ "u section #h;c
 ( ! ,agricultural ,adju/m5t ,act 7#g   
,u4,s4,c4 #fjh;c71 re5act$ ) am5dm5ts by
 ! ,agricultural ,m>ket+ ,agreem5t ,act 
( #aicg4  7b7 ,reque/s = proposals  7#a7
 ,9 g5]al ,n lat] ?an #fj days aft] !   
date ( enactm5t ( ?is ,act1 ! ,secret>y 
%all issue a reque/ = ! submission by   
int]e/$ p]sons ( prelim9>y proposals =  
replacem5t ( ! ,class ,,iii milk product

 pric+ =mula4  7#b7 ,prelim9>y proposals
 ,prelim9>y proposals submitt$ "u       
p>agraph 7#a7--  7,a7 may include       
competitive pay price =mulas2 &  7,b7   
%all provide suffici5t detail 9 concept 
to s]ve z ! basis = ! conv5+ by !       
,secret>y ( a public in=mation session =
 review & discussion 9 accordance )     
section #ijj4bd ( title #g1 ,code (     
,f$]al ,regulations 7z 9 effect on !    
date ( enactm5t ( ?is ,act71 b ne$ n    
con=m ) ! o!r proc$ural requirem5ts ( "p
 #ijj ( title #g1 ,code ( ,f$]al        
,regulations 7z 9 effect on ! date (    
enactm5t ( ?is ,act74  7c7 ,pre-,he>+   
in=mation session review  7#a7 ,9 g5]al 
,n lat] ?an #ahj days aft] ! date (     
enactm5t ( ?is ,act1 ! ,secret>y %all   
conv5e a public in=mation session "u    
section #ijj4bd ( title #g1 ,code (     
,f$]al ,regulations 7z 9 effect on !    
date ( enactm5t ( ?is ,act74  7#b7      
,requirem5ts ,! ,secret>y %all review   
all prelim9>y proposals submitt$ "u ?is 
section t are ( suffici5t conceptual    

detail to all[ = ! review describ$ 9    
p>agraph 7#a74  7d7 ,he>+ det]m9ation   
7#a7 ,9 g5]al ,n lat] ?an #ij days aft] 
! conduct ( ! public in=mation session  
"u subsection 7c71 ! ,secret>y %all     
det]m9e :e!r to conduct a =mal he>+ 9   
accordance ) "p #ijj ( title #g1 ,code (
 ,f$]al ,regulations 7z 9 effect on !   
date ( enactm5t ( ?is ,act74  7#b7 ,he>+
 to be conduct$ ,if ! ,secret>y det]m9es
 "u p>agraph 7#a7 to conduct a =mal     
he>+1 ! ,secret>y %all issue notice &   
conduct ! he>+ 9 accordance ) "p #ijj ( 
title #g1 ,code ( ,f$]al ,regulations 7z
 9 effect on ! date ( enactm5t ( ?is    
,act74  7#c7 ,he>+ n to be conduct$ ,if 
! ,secret>y det]m9es "u p>agraph 7#a7 n 
to conduct a =mal he>+1 n lat] ?an #ij  
days aft] t det]m9ation1 ! ,secret>y    
%all submit to ! ,committee on          
,agriculture ( ! ,h\se ( ,repres5tatives
 & ! ,committee on ,agriculture1        
,nutrition & ,=e/ry ( ! ,s5ate a writt5 
report t expla9s ! basis = ! decision4  
7e7 ,proce$+ ) a he>+ at any "t         

,consi/5t ) ! purposes ( ?is section1 ! 
,secret>y may disp5se ) ! pre-he>+      
requirem5ts ( ?is section & initiate at 
any "t a =mal he>+ "u "p #ijj ( title   
#g1 ,code ( ,f$]al ,regulations 7z 9    
effect on ! date ( enactm5t ( ?is ,act74
  #adhb4 ,f$]al milk m>ket+ ord]s ,n    
lat] ?an #ahj days aft] ! date (        
enactm5t ( ?is ,act1 ! ,secret>y %all   
conduct he>+s--  7#a7 to analyze !      
implications ( transition+ f a #d-;class
 sy/em = milk products to a #b-;class   
sy/em2  7#b7 to explore me?ods to       
improve signals = price discov]y 9 !    
%ort- & long-t]m to all[ dairy produc]s 
to bett] use risk managem5t tools2 &    
7#c7 to assess :e!r a #b-;class         
competitive pay pric+ sy/em = milk      
products w\ld be m or less transp>5t ?an
 ! sy/em 9 effect z ( ! day be=e ! date 
( enactm5t ( ?is ,act4  ,v ,effective   
date  #adia4 ,effective date ,except z  
o!rwise provid$ 9 ?is subtitle1 ?is     
subtitle & ! am5dm5ts made by ?is       
subtitle take effect on ,octob] #a1     

#bjab4