II 109th CONGRESS 1st Session S. 869 IN THE SENATE OF THE UNITED STATES April 21, 2005 Mr. Feingold introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To amend the Agricultural Adjustment Act to prohibit the Secretary of Agriculture from basing minimum prices for Class I milk on the distance or transportation costs from any location that is not within a marketing area, except under certain circumstances, and for other purposes.

1.

Short title

This Act may be cited as the Federal Milk Marketing Reform Act of 2005.

2.

Location adjustments for minimum prices for Class I milk

Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended— (1)in paragraph (A)— (A)in clause (3) of the second sentence, by inserting after the locations the following: within a marketing area subject to the order; and (B)by striking the last 2 sentences and inserting the following: Notwithstanding subsection (18) or any other provision of law, when fixing minimum prices for milk of the highest use classification in a marketing area subject to an order under this subsection, the Secretary may not, directly or indirectly, base the prices on the distance from, or all or part of the costs incurred to transport milk to or from, any location that is not within the marketing area subject to the order, unless milk from the location constitutes at least 50 percent of the total supply of milk of the highest use classification in the marketing area. The Secretary shall report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the criteria that are used as the basis for the minimum prices referred to in the preceding sentence, including a certification that the minimum prices are made in accordance with the preceding sentence.; and (2)in paragraph (B)(c), by inserting after the locations the following: within a marketing area subject to the order.