II 112th CONGRESS 1st Session S. 1714 IN THE SENATE OF THE UNITED STATES October 17, 2011 Mrs. Gillibrand introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To extend the milk income loss contract program, to require the Secretary of Agriculture to conduct hearings to assess the implications of transitioning Federal milk marketing orders from end-product pricing to a competitive pay pricing system, and for other purposes.

1.

Short title

This Act may be cited as the Dairy Producer Income Protection Act of 2011.

2.

Milk income loss contract program

(a)

In general

Section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is amended— (1)in subsection (c)(3)— (A)in subparagraph (A), by inserting and after the semicolon at the end; (B)in subparagraph (B)— (i)by striking ending August 31, 2012 and inserting thereafter; and (ii)by striking ; and and inserting a period; and (C)by striking subparagraph (C); (2)in subsection (d)— (A)in the subsection heading, by striking for feed prices; and (B)by adding at the end the following: (4)

Payment rate adjustments

(A)

In general

Subject to paragraphs (1) through (3), for each of fiscal years 2012 through 2015, the amount specified in subsection (c)(2)(A) used to determine the payment rate for the fiscal year shall be the payment rate for the preceding fiscal year, as adjusted to reflect changes for the 12-month period ending the preceding November 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. (B)

Termination of authority

Effective beginning in fiscal year 2016, the authority for the adjustment described in subparagraph (A) shall terminate. ; (3)in subsection (e)(2)(A)— (A)in clause (i), by inserting and after the semicolon at the end; (B)in clause (ii)— (i)by striking for the period and all that follows through 2012 and inserting effective beginning October 1, 2008; and (ii)by striking ; and and inserting a period; and (C)by striking clause (iii); and (4)in subsections (g) and (h)(1), by striking September 30, 2012 each place it appears and inserting September 30, 2017. (b)

Offsets

(1)

Repeal of permanent price support authority for milk

(A)

In general

Section 201 of the Agricultural Act of 1949 (7 U.S.C. 1446) is amended— (i)in subsection (a), by striking milk,; and (ii)by striking subsections (c) and (d). (B)

Conforming amendment

Section 301 of the Agricultural Act of 1949 (7 U.S.C. 1447) is amended by inserting (other than milk) after agricultural commodity. (2)

Repeal of dairy product price support program

Section 1501 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8771) is repealed. (3)

Repeal of dairy export incentive program

(A)

In general

Section 153 of the Food Security Act of 1985 (15 U.S.C. 713a–14) is repealed. (B)

Conforming amendments

Section 902(2) of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7201(2)) is amended— (i)by striking subparagraph (D); and (ii)by redesignating subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively.

3.

Federal milk marketing reform

(a)

In general

Not later than 180 days after the date of enactment of this Act, the Secretary of Agriculture shall conduct hearings to assess the implications of transitioning Federal milk marketing orders from end-product pricing to a competitive pay pricing system. (b)

Requirements

In conducting hearings under this section, the Secretary shall— (1)ensure that market administrators conduct a thorough analysis of the reforms to the Federal milk marketing orders proposed by the Maine Dairy Industry Advisory Council and the reforms included in title II of the Dairy Security Act of 2011; (2)analyze the implications of transitioning from a 4-class system for milk products to a 2-class system; (3)explore methods to improve signals for price discovery in the short- and long-term to allow dairy producers to better use risk management tools; (4)assess whether a 2-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 Act; and (5)analyze the impact of eliminating a minimum regulated price on price volatility in dairy markets.

4.

Budgetary effects

The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled Budgetary Effects of PAYGO Legislation for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage.