[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4906 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 4906
To amend the Dairy Production Stabilization Act of 1983 to establish a
dairy market stabilization program, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 24, 2026
Mr. Welch (for himself and Mr. Sanders) introduced the following bill;
which was read twice and referred to the Committee on Agriculture,
Nutrition, and Forestry
_______________________________________________________________________
A BILL
To amend the Dairy Production Stabilization Act of 1983 to establish a
dairy market stabilization program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Milk From Family Dairies Act of
2026''.
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term ``Secretary'' means the Secretary of
Agriculture.
SEC. 3. DAIRY MARKET STABILIZATION PROGRAM.
(a) In General.--The Dairy Production Stabilization Act of 1983
(Public Law 98-180; 97 Stat. 1128) is amended by adding at the end the
following:
``Subtitle D--Dairy Market Stabilization Program
``SEC. 141. DEFINITIONS.
``In this subtitle:
``(1) Allowable milk marketings.--The term `allowable milk
marketings' means the quantity of milk production that a
producer may produce during a quarter without incurring a
market access fee, as determined under section 143(a)(3).
``(2) Alternative market access fee.--The term `alternative
market access fee' means a fee described in section 143(b)(2)
that is assessed on all milk produced in excess of the
allowable milk marketings of a producer.
``(3) Appeals committee.--The term `Appeals Committee'
means the Producer Appeals Committee established under section
142(c).
``(4) Floor price.--The term `floor price' means the
minimum price that a producer shall receive for milk, as
established under section 142(b)(5)(B).
``(5) Market access fee dividend.--The term `market access
fee dividend' means the market access fees collected during an
applicable quarter that are redistributed to producers with
allowable milk marketings under section 143(c).
``(6) Milk handler.--The term `milk handler' means a person
that makes payments to a producer for milk produced in the
United States and purchased from the producer for commercial
use.
``(7) National board.--The term `National Board' means the
National Dairy Producer Board established under section 142(b).
``(8) National production base.--The term `national
production base' means the total quantity of milk production
that all producers may produce in all regions during a calendar
year, as determined under section 143(a)(2).
``(9) Order.--The term `order' means an order issued by the
Secretary under section 142(a).
``(10) Producer.--
``(A) In general.--The term `producer' means any
person engaged in the production of bovine milk for
commercial use.
``(B) Inclusions.--The term `producer' includes any
producer holding a license to produce milk.
``(C) Exclusion.--The term `producer' does not
include a person engaged in the production of bovine
milk for commercial use on a certified organic farm or
certified organic handling operation (as those terms
are defined in section 2103 of the Organic Foods
Production Act of 1990 (7 U.S.C. 6502)).
``(11) Program.--The term `Program' means the Dairy Market
Stabilization Program established under section 142(a).
``(12) Quarter.--The term `quarter' means each of the
following 4 quarters of a calendar year:
``(A) January 1 through March 31.
``(B) April 1 through June 30.
``(C) July 1 through September 30.
``(D) October 1 through December 31.
``(13) Region.--The term `region' means each of the
following:
``(A) Region 1, Northeast, consisting of the States
of Connecticut, Delaware, Maine, Maryland,
Massachusetts, New Hampshire, New Jersey, New York,
Pennsylvania, Rhode Island, Vermont, and West Virginia.
``(B) Region 2, Southeast, consisting of the States
of Alabama, Arkansas, Florida, Georgia, Kentucky,
Louisiana, Mississippi, Missouri, North Carolina, South
Carolina, Tennessee, and Virginia.
``(C) Region 3, Midwest, consisting of the States
of Illinois, Indiana, Iowa, Michigan, Minnesota,
Nebraska, North Dakota, Ohio, South Dakota, and
Wisconsin.
``(D) Region 4, South, consisting of the States of
Kansas, New Mexico, Oklahoma, and Texas.
``(E) Region 5, Northwest, consisting of the States
of Colorado, Idaho, Montana, Oregon, Utah, Washington,
and Wyoming.
``(F) Region 6, West, consisting of the States of
Arizona, California, and Nevada.
``(G) Region 7, Noncontiguous, consisting of any
States and territories that elect to participate in the
Program pursuant to section 142(e), if at least 1 State
or territory elects to participate.
``(14) Regional board.--The term `Regional Board' means a
Regional Milk Marketing Order Board established under section
142(d).
``(15) Regional production base.--The term `regional
production base' means the total quantity of milk production
that all producers may produce in a region during a calendar
year, as determined under section 143(a)(2).
``(16) Secretary.--The term `Secretary' means the Secretary
of Agriculture.
``(17) Standard market access fee.--The term `standard
market access fee' means a fee assessed under section 143(b) on
all milk produced by a producer.
``SEC. 142. ESTABLISHMENT.
``(a) Issuance of Orders.--
``(1) Proposed order.--Not later than 60 days after the
date of enactment of this subtitle, the Secretary shall publish
in the Federal Register a proposed order to establish a
program, to be known as the `Dairy Market Stabilization
Program', that shall apply to all producers within the
contiguous United States that produce milk for sale
commercially.
``(2) Final order.--After providing notice and opportunity
for public comment on the proposed order under paragraph (1),
but not later than 90 days after publication of the proposed
order, the Secretary shall issue an order to establish the
Program.
``(3) Referendum on continuation of program.--
``(A) In general.--Not later than 5 years after the
date of enactment of this subtitle, the Secretary shall
conduct a referendum among producers who, during a
representative period (as determined by the Secretary),
have been engaged in the production of milk for
commercial use, for the purpose of ascertaining whether
the Program then in effect shall be continued.
``(B) Voting procedure.--For purposes of voting in
the referendum--
``(i) each producer shall be entitled to
cast the vote of the producer; and
``(ii) a cooperative association of
producers may not vote on behalf of the members
of the association.
``(C) Determination.--The Program shall be
continued after the date of the referendum only if the
Secretary determines that the Program has been approved
by not less than a majority of the eligible producers
voting in the referendum.
``(D) Termination.--If continuation of the Program
is not approved by a majority of the eligible producers
voting in the referendum, the Secretary shall--
``(i) terminate the collection of fees
under the Program not later than 180 days after
the Secretary determines that termination is
favored by a majority of the eligible producers
voting in the referendum; and
``(ii) terminate the Program in an orderly
manner, as soon as practicable, after that
determination.
``(b) National Dairy Producer Board.--
``(1) In general.--The order shall provide for the
establishment of a board of directors, to be known as the
`National Dairy Producer Board', to advise the Secretary on the
administration of the Program at the national level.
``(2) Composition.--The National Board shall be composed of
the following members:
``(A) 2 producers appointed with respect to each
region by the Secretary, under the advisement of the
applicable Regional Board.
``(B) 1 representative of dairy consumers appointed
by the Secretary.
``(C) 1 representative of fluid milk bottlers
appointed by the Secretary.
``(D) 1 representative of dairy product processors
appointed by the Secretary.
``(3) Terms.--Each member of the National Board shall serve
for a term of 3 years.
``(4) Advisor.--
``(A) In general.--The Secretary shall appoint a
dairy economist to advise the National Board.
``(B) Nonvoting member.--The individual appointed
under subparagraph (A) shall be a nonvoting member of
the National Board.
``(5) Specific duties.--
``(A) Estimates of milk production and
consumption.--The Secretary, under the advisement of
the National Board and in coordination with the
Economic Research Service, shall annually estimate the
total quantity of milk produced and consumed in the
contiguous United States.
``(B) Floor price.--Each quarter, the Secretary,
under the advisement of the National Board, shall
establish a variable floor price for milk, based on the
herd size of each dairy, which shall take into
account--
``(i) the economic conditions of the dairy
industry in the United States;
``(ii) the economic conditions of the world
dairy market;
``(iii) the commercial disappearance of
fluid and manufactured milk products;
``(iv) the domestic on-farm cost of
producing raw milk, based on herd size,
including--
``(I) the cost of feed;
``(II) the cost of labor, including
the reasonable value of the labor and
management of the dairy producer;
``(III) machinery expenses;
``(IV) the cost of land;
``(V) interest expenses; and
``(VI) other cash expenses,
including the cost of hauling,
veterinary services and medicine,
bedding and litter, marketing, custom
services and supplies, fuel,
lubrication, electricity, machinery and
building repairs, labor, association
fees, and assessments;
``(v)(I) the domestic mailbox milk price
paid to producers in the United States; and
``(II) the margin between that milk price
and the domestic on-farm cost of producing raw
milk referred to in clause (iv);
``(vi) other economic forces affecting
producers;
``(vii) probable trends in production and
consumption of milk and milk products;
``(viii) the level of dairy farm prices in
relation to production costs;
``(ix) the financial condition of
producers; and
``(x) the costs and charges for producing,
hauling, handling, processing, distributing,
selling, and conducting all other services
performed with respect to milk and milk
products.
``(C) Production base.--The Secretary, under the
advisement of the National Board, shall administer the
system of national production base and regional
production base in accordance with section 143(a)(2).
``(c) Producer Appeals Committee.--The order shall require the
Secretary, under the advisement of the National Board, to establish a
committee, to be known as the `Producer Appeals Committee', to advise
the Secretary on appeals of decisions made under the Program.
``(d) Regional Milk Marketing Order Boards.--
``(1) In general.--The order shall provide for the
establishment of a board of directors for each region, each of
which to be known as a `Regional Milk Marketing Order Board',
to advise the Secretary on the administration of the Program
with respect to the region for which the Regional Board is
established.
``(2) Composition.--Each Regional Board shall be composed
of 15 members, of whom--
``(A) 12 shall be producers;
``(B) 1 shall represent dairy consumers;
``(C) 1 shall represent fluid milk bottlers; and
``(D) 1 shall represent dairy product processors.
``(3) Election.--
``(A) In general.--The Secretary shall hold an
election of producers in each region to select the
members of each Regional Board.
``(B) Voting.--For purposes of voting in the
election--
``(i) each producer shall have 1 vote per
region in which the dairy producer has a dairy;
and
``(ii) a cooperative association of
producers may not vote on behalf of the members
of the association.
``(4) Terms.--Each member of a Regional Board shall serve
for a term of 5 years.
``(5) Accountability.--
``(A) In general.--The Secretary, under the
advisement of the National Board, shall establish for
the Regional Boards minimum requirements for
transparency and accountability, including--
``(i) requirements for regular county- and
State-level meetings; and
``(ii) requirements to conduct public
hearings.
``(B) GAO reviews.--The Comptroller General of the
United States shall conduct reviews--
``(i) to assess the adequacy of the
requirements established under subparagraph
(A); and
``(ii) to assess the compliance of Regional
Boards with those requirements.
``(6) Administrative fee.--
``(A) In general.--The Secretary, under the
advisement of the National Board, shall establish an
administrative fee to be paid by each producer in a
region to fund the activities of the Regional Board for
that region.
``(B) Amount.--The amount of an administrative fee
established under subparagraph (A) shall be such amount
as is necessary for a Regional Board to carry out its
activities.
``(C) GAO reviews.--The Comptroller General of the
United States shall conduct reviews to assess the
amount of an administrative fee established under
subparagraph (A).
``(7) Duties.--The Secretary, under the advisement of each
Regional Board, shall, with respect to a region--
``(A) in accordance with the floor price and the
system of national production base and regional
production base established under section 143(a)(2)--
``(i) purchase milk from producers and sell
the milk to milk handlers; and
``(ii) coordinate milk handling logistics
from dairies to milk handlers, including by
licensing milk haulers;
``(B) adjust producer pay prices at higher rates
than the floor price based on--
``(i) regional costs; and
``(ii) milk component ratios (butterfat and
protein), quality, or other factors; and
``(C) create an exemption and attestation
requirement for producers that market directly to
consumers who receive a higher price for their milk
than such amount as is established by the Secretary,
under the advisement of the National Board.
``(e) Election of Noncontiguous States and Territories To
Participate.--
``(1) In general.--The Governor of a noncontiguous State or
territory of the United States may elect to participate in the
Program by submitting to the Secretary a notification of that
election.
``(2) Revision of order.--On the submission of a
notification by a State or territory under paragraph (1), the
Secretary shall revise the order as appropriate to provide for
the participation of the State or territory in the Program in
accordance with this subtitle.
``(3) Appointment.--On the submission of a notification by
the first State or territory under paragraph (1), the
Secretary, under the advisement of the applicable Regional
Board, shall appoint 2 members to the National Board under
subsection (b)(2)(A) to represent Region 7.
``SEC. 143. OPERATION OF THE PROGRAM.
``(a) Establishment of Production Bases and Allowable Milk
Marketings.--
``(1) In general.--The order shall provide for the
establishment of a national production base, regional
production bases, and allowable milk marketings in accordance
with this subsection.
``(2) National and regional production bases.--
``(A) In general.--At least 30 days before the
first day of each calendar year, the Secretary, under
the advisement of the National Board, shall--
``(i) establish the national production
base for that calendar year;
``(ii) allocate to each region a regional
production base for that calendar year; and
``(iii) notify each Regional Board of the
regional production base allocated to the
applicable region.
``(B) First year of the program.--For the first
year of operation of the Program--
``(i) the regional production base for each
region shall be determined by aggregating the
allowable milk marketings for each producer in
the region determined under paragraph (3)(B);
and
``(ii) the national production base shall
be determined by aggregating each of the
regional production bases determined under
clause (i).
``(C) Subsequent years.--For each year after the
first year of operation of the Program, the Secretary,
under the advisement of the National Board, shall--
``(i) determine whether--
``(I) the national production base
for the previous year exceeded the
national demand for milk; or
``(II) the national demand for milk
exceeded the national production base
for the previous year; and
``(ii) adjust the national production base
and each regional production base--
``(I) for the purpose of aligning
milk supply and demand;
``(II) for the purpose of ensuring
each producer with allowable milk
marketings receives, at a minimum, a
floor price matching the average cost-
of-production based on the herd size of
their dairy; and
``(III) based on any adjustments to
the allowable milk marketings under
paragraph (3)(C).
``(3) Allowable milk marketings.--
``(A) In general.--Of the regional production base
for a calendar year, the Secretary, under the
advisement of the applicable Regional Board, shall
allocate to each producer in the applicable region a
quantity of milk production that the producer may
produce during each quarter of that calendar year.
``(B) First year of the program.--
``(i) Producers that market milk 3 years
preceding the enactment of this subtitle.--In
the case of a producer that marketed milk
during each of the 3 calendar years preceding
the date of enactment of this subtitle, the
allowable milk marketings for the producer
during the first year of operation of the
Program shall be, at the option of the dairy
producer--
``(I) the average of the milk
marketings for the corresponding
quarters of the previous 3 calendar
years; or
``(II) the milk marketings for the
corresponding quarter of the calendar
year preceding the date of enactment of
this subtitle.
``(ii) Other producers.--In the case of a
producer that did not market milk during each
of the 3 calendar years preceding the date of
enactment of this subtitle, but that is
marketing milk as of the date of enactment of
this subtitle, the initial establishment of
allowable milk marketings shall be--
``(I) established by the Secretary,
under the advisement of the Regional
Board, in an amount determined to be
appropriate; and
``(II) subject to review by the
Appeals Committee.
``(C) Subsequent years.--
``(i) In general.--The Secretary, under the
advisement of each Regional Board, shall adjust
the allowable milk marketings for producers--
``(I) for the purpose of aligning
milk supply with demand, including in
the case of an affirmative
determination under paragraph
(2)(C)(i); and
``(II) in the case of new producers
that are beginning milk marketing.
``(ii) New producers.--
``(I) Waitlist.--The Secretary,
under the advisement of each Regional
Board, shall maintain for each region a
waitlist of new producers that are
requesting to market milk in the
region.
``(II) Eligibility.--To receive an
allocation of allowable milk
marketings, a new producer shall
demonstrate sufficient experience and
expertise in dairy farming.
``(III) Priority.--In allocating
allowable milk marketings to producers
who are beginning milk marketing, the
Secretary, under the advisement of each
Regional Board, shall prioritize
producers who have not previously
commercially marketed milk.
``(iii) Increases in production base.--If
the Secretary, under the advisement of the
National Board, increases the national
production base under paragraph (2)(C)(ii), the
Secretary, under the advisement of the
applicable Regional Board, in allocating the
additional allowable milk marketings, shall
prioritize allocations to new producers that
are beginning milk marketing.
``(iv) Decreases in production base.--
``(I) In general.--If the
Secretary, under the advisement of the
National Board, decreases the national
production base under paragraph
(2)(C)(ii), the Secretary, under the
advisement of the applicable Regional
Board, shall prioritize reductions in
allowable milk marketings from
producers that possess the most
allowable milk marketings.
``(II) Limitation.--The Secretary
shall not reduce the allowable milk
marketings of a producer by more than
10 percent for any calendar year.
``(D) Limitation.--The allowable milk marketings of
a producer shall not be greater than 1,000 percent of
the national average of the allowable milk marketings
for all producers.
``(E) Appeal.--A dairy producer may appeal to the
Secretary, under the advisement of the National Board,
the quantity of allowable milk marketings established
for the dairy producer.
``(F) Sharing of allowable milk marketings.--
Producers on the same dairy may share allowable milk
marketings allocated to the producers.
``(G) Transfers of allowable milk marketings.--
``(i) In general.--Subject to subparagraph
(H) and clauses (ii) and (iii), a producer may
transfer allowable milk marketings allocated to
the producer to 1 or more other producers for
the purpose of--
``(I) downsizing or increasing the
size of a dairy; or
``(II) transferring allowable milk
marketings to 1 or more other producers
on the same dairy.
``(ii) Limitation on transfer.--If a
producer transfers allowable milk marketings to
one or more other producers that possess
allowable milk marketings, of the allowable
milk marketings being transferred--
``(I) the producer shall transfer
not more than 50 percent to the one or
more other producers; and
``(II) the Secretary, under the
advisement of the applicable Regional
Board, shall distribute the remainder
to new producers that are beginning
milk marketing.
``(iii) Limitation on receipt.--If a
producer transfers allowable milk marketings to
one or more other producers that possess
allowable milk marketings, the producer
receiving the allowable milk marketings shall
not receive more than 50 percent of the
allowable milk marketings of that producer
prior to the transfer.
``(H) Prohibitions on monetization.--
``(i) In general.--The order shall include
prohibitions on monetizing, leasing, selling,
or trading allowable milk marketings for
financial or material gain.
``(ii) Penalties.--The order shall include
penalties for violations of the prohibitions
established under clause (i), which may
include--
``(I) permanent reduction of
allowable milk marketings;
``(II) fines equal to not less than
105 percent of the gain from
monetizing, leasing, selling, or
trading allowable milk marketings;
``(III) increased market access
fees; and
``(IV) any other penalties that the
Secretary, under the advisement of the
National Board, determine to be
appropriate.
``(I) Leap-year adjustment.--
``(i) In general.--During a calendar year
that consists of 366 days, \1/90\ of the
allowable milk marketings for the first quarter
shall be added to the allowable milk marketings
of each producer.
``(ii) Subsequent year.--Following a year
described in clause (i), \1/91\ of the
allowable milk marketings shall be subtracted
from the allowable milk marketings of each
producer during the preceding year.
``(4) Online database.--The Secretary, under the advisement
of the National Board, shall establish an online database
that--
``(A) allows producers to access information
related to allowable milk marketings;
``(B) facilitates the transfer of allowable milk
marketings in accordance with paragraph (3)(G); and
``(C) provides such other information relating to
the Program as the Secretary, under the advisement of
the National Board, determines to be appropriate.
``(b) Collection of Market Access Fees.--
``(1) In general.--The order shall provide that the
Secretary, under the advisement of each Regional Board, shall
be responsible for establishing appropriate market access fees
that--
``(A) disincentivize overproduction of milk in
accordance with this subsection; and
``(B) are in amounts that are greater than the
income derived by a producer in marketing milk in
excess of the allowable milk marketings of the
producer.
``(2) Alternative market access fee.--During any quarter, a
producer that produces and markets milk in a quantity that is
greater than the allowable milk marketings of the producer for
that quarter shall be assessed the standard market access fee
in the following quarter unless, not later than 7 days after
the end of the quarter, the producer notifies in writing the
appropriate Regional Board of the intent of the producer to pay
the alternative market access fee in lieu of the standard
market access fee.
``(3) Notice.--Not later than 25 days after the end of a
quarter during which a producer exceeded the allowable milk
marketings of the producer, the Secretary, under the advisement
of the appropriate Regional Board, shall send to the producer
and to each of the milk handlers of the producer a notice that
describes the market access fee to be assessed against the
producer during the following quarter.
``(4) Milk handlers.--
``(A) In general.--Each milk handler of a producer
notified under paragraph (3) shall--
``(i) during the quarter for which the milk
handler receives the notice, collect an
assessment per hundredweight of milk from the
producer in the amount of the market access fee
described in the notice; and
``(ii) deposit the assessment amounts into
the protected account established by subsection
(d).
``(B) Alternative market access fee.--If a producer
notifies the appropriate Regional Board under paragraph
(2) of an intent to pay the alternative market access
fee, the amount of the assessment described in the
notice under paragraph (3) shall be--
``(i) deducted from the revenues of the
producer in 3 equal monthly installments; and
``(ii) deposited into the protected account
established by subsection (d).
``(5) Responsibility.--The milk handler for the 1 or more
owners of the milk-producing cows at a dairy that receives a
notice under paragraph (3) shall give notice to the owners that
the market access fees shall be--
``(A) deducted from the proceeds of the dairy; and
``(B) submitted to the appropriate Regional Board.
``(c) Payment of Market Access Fee Dividends.--
``(1) In general.--The order shall provide for the payment
of market access fee dividends in accordance with this
subsection.
``(2) Receipt of dividend.--During any quarter, a producer
that produces and markets a quantity of milk that is less than
or equal to the allowable milk marketings of the producer for
that quarter shall be entitled to receive a market access fee
dividend in an amount based on the ratio that--
``(A) each hundredweight of allowable milk
marketings produced during that quarter by the
producer; bears to
``(B) total hundredweights produced by all
producers that did not exceed the applicable allowable
milk marketings during that quarter.
``(3) Total amount.--The total amount of market access fee
dividends available during a quarter shall be equal to the
cumulative market access fees collected under this subtitle for
a quarter.
``(4) Distribution.--
``(A) In general.--The market access fee dividends
for a quarter shall be distributed to each qualifying
producer not later than 30 days after the last day of
the following quarter.
``(B) Payment.--Payment of market access fee
dividends shall be by check or direct deposit.
``(5) Actively engaged in farming.--
``(A) In general.--To be eligible to receive a
payment under this subsection, a producer shall be
actively engaged in farming.
``(B) Definitions.--In this paragraph:
``(i) Actively engaged in farming.--
``(I) In general.--The term
`actively engaged in farming', with
respect to a natural person who is a
shareholder in an authorized legal
entity, an officer, a director, or an
employee of an authorized legal entity,
a member or manager of an authorized
legal entity, a partner in an
authorized legal entity, a beneficiary
or trustee of an authorized legal
entity, or any other individual,
means--
``(aa) regularly and
frequently making or taking an
important part in making
management decisions
substantially contributing to
or affecting the operation of a
farm; or
``(bb) performing physical
work, which significantly
contributes to cultivation,
stewardship, crop or livestock
production, or food production.
``(II) Exclusion.--The term
`actively engaged in farming' does not
include solely providing capital.
``(ii) Authorized legal entity.--The term
`authorized legal entity' means a legal entity
that meets each of the following requirements:
``(I) The legal entity is not a
subsidiary of, or owned in any part by,
a multilayered subsidiary entity.
``(II) The shareholders, partners,
members, or beneficial owners of the
legal entity do not exceed 25.
``(III) The shareholders, partners,
members, or beneficial owners of the
legal entity are all natural persons
who are actively engaged in farming.
``(d) Protected Account.--There is established in the Treasury of
the United States a protected account for the purpose of receiving
market access fees under subsection (b) and paying dividends under
subsection (c).
``(e) Transition Period for Large Dairies.--
``(1) In general.--During the first 2 years of operation of
the program, a producer that has allowable milk marketings that
exceed 1,000 percent of the national average shall not be
subject to any market access fees or eligible to receive any
market access fee dividends under this section.
``(2) Establishment of allowable milk marketings.--For each
producer described in paragraph (1), the Secretary, under the
advisement of the National Board, shall establish allowable
milk marketings consistent with this section.
``(3) Resources.--The Secretary may use such sums as are
necessary of the funds of the Commodity Credit Corporation to
incentivize producers described in paragraph (1) to reduce milk
production and the allowable milk marketings to less than 1,000
percent of the national average, including--
``(A) buying a portion of the allowable milk
marketings of the producer;
``(B) providing an additional premium per dairy cow
sold to producers that have allowable milk marketings
that are less than 1,000 percent of the national
average;
``(C) assisting the producer in restructuring loans
that will assist their dairy operations in downsizing;
and
``(D) any other incentive the Secretary, under the
advisement of the National Board, determines to be
appropriate.''.
(b) Suspension of Programs.--During any period in which the Dairy
Market Stabilization Program established under section 142(a) of the
Dairy Production Stabilization Act of 1983 (Public Law 98-180; 97 Stat.
1128) is in effect, the following shall apply:
(1) Dairy margin coverage.--Part I of subtitle D of title I
of the Agricultural Act of 2014 (7 U.S.C. 9051 et seq.) shall
have no force or effect.
(2) Dairy revenue protection.--The Federal Crop Insurance
Corporation shall not offer the Dairy Revenue Protection plan
of insurance or any substantially similar policy or plan of
insurance under the Federal Crop Insurance Act (7 U.S.C. 1501
et seq.) relating to dairy.
(3) Agricultural act of 1949.--None of the following
provisions of the Agricultural Act of 1949 shall be applicable
to milk:
(A) Section 101 (7 U.S.C. 1441).
(B) Section 103(a) (7 U.S.C. 1444(a)).
(C) Section 105 (7 U.S.C. 1444b).
(D) Section 107 (7 U.S.C. 1445a).
(E) Section 110 (7 U.S.C. 1445e).
(F) Section 112 (7 U.S.C. 1445g).
(G) Section 115 (7 U.S.C. 1445k).
(H) Section 201 (7 U.S.C. 1446).
(I) Title III (7 U.S.C. 1447 et seq.).
(J) Title IV (7 U.S.C. 1421 et seq.), other than
sections 404, 412, and 416 (7 U.S.C. 1424, 1429, 1431).
(K) Title V (7 U.S.C. 1461 et seq.).
(L) Title VI (7 U.S.C. 1471 et seq.).
SEC. 4. IMPORT CONTROL REFORMS.
(a) Dairy Import License Fees.--The Secretary shall increase the
fee for a license to import dairy articles subject to tariff-rate
quotas to the extent permitted by trade agreements to which the United
States is a party.
(b) Quantity of Raw Milk Imports.--Not less than once each quarter
of a calendar year, the Secretary shall determine and publish the
quantity of raw milk in all dairy products imported into the United
States.
(c) Tariff-Rate Quotas.--The Secretary shall--
(1) subject all dairy products and derivatives to the
tariff-rate quotas set forth in the Harmonized Tariff Schedule
of the United States; and
(2) lower quotas on dairy products to the extent permitted
by trade agreements to which the United States is a party.
(d) Sense of Congress.--It is the sense of Congress that trade
negotiations should seek to establish lower quotas for imports of dairy
products and impose additional restrictions on imports of more dairy
products and dairy products imported from more countries.
SEC. 5. MARKET CONSOLIDATION REPORTS.
The Secretary shall annually--
(1) conduct a review of the economic impacts on market
prices for consumers of dairy products and farm-gate prices for
dairy producers of horizontal integration and vertical
integration by cooperative and noncooperative entities; and
(2) make publicly available a report describing the review
under paragraph (1).
SEC. 6. REGIONAL DAIRY INFRASTRUCTURE REFORMS.
(a) Training Programs.--
(1) Education programs for small-scale dairy.--The
Secretary shall establish a grant program to create or support
training programs relating to small-scale dairy at land-grant
colleges and universities (as defined in section 1404 of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3103)).
(2) Assistance for farmworkers transitioning to
ownership.--The Secretary shall establish a program to provide
grants, loans, and technical assistance to dairy farmworkers
transitioning to dairy farm ownership.
(3) Apprenticeship program.--
(A) In general.--The Secretary shall establish an
apprenticeship program relating to dairy production.
(B) Regional administration.--The Secretary shall
carry out the program established under subparagraph
(A) in coordination with Regional Boards (as defined in
section 141 of the Dairy Production Stabilization Act
of 1983 (Public Law 98-180; 97 Stat. 1128)).
(4) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $50,000,000 for each of fiscal years 2027 through
2031.
(b) Dairy Business Innovation Initiatives.--Section 12513 of the
Agriculture Improvement Act of 2018 (7 U.S.C. 1632d) is amended--
(1) in subsection (g), by adding at the end the following:
``(6) Availability to states and territories.--The
Secretary shall ensure that activities under the program under
this section are available in--
``(A) each of the 50 States;
``(B) American Samoa;
``(C) Puerto Rico;
``(D) the Northern Mariana Islands;
``(E) the United States Virgin Islands; and
``(F) Guam.''; and
(2) in subsection (i), by striking ``$20,000,000'' and
inserting ``$50,000,000''.
(c) Cost-Share Grants for Small-Scale Dairy Infrastructure.--
(1) Infrastructure investment funding program.--Not later
than 180 days after the date of enactment of this Act, the
Secretary shall establish a program to provide funding for
investments in infrastructure to enhance regional milkshed
markets that seek to drive a greater affinity for regionally
sourced and processed dairy products by incentivizing support
for--
(A) the development of new dairy processing plants
that support multiple regional small dairy operations
(as determined based on the small business size
standard for the applicable North American Industry
Classification System code described in section 121.201
of title 13, Code of Federal Regulations (or a
successor regulation));
(B) initiatives that establish institutional
purchasing of local dairy products;
(C) investment in infrastructure on farms and in
sites that aggregate raw milk to gain transport and
processing efficiencies;
(D) the establishment of on-farm dairy processing
and storage;
(E) producers and processors that want to expand
regional processing infrastructure serving regionally
produced milk from multiple regional small dairy
operations (as determined based on the small business
size standard for the applicable North American
Industry Classification System code described in
section 121.201 of title 13, Code of Federal
Regulations (or a successor regulation)), including
by--
(i) supporting work to finalize business
plans; and
(ii) providing processor start-up capital;
and
(F) initiatives that support increasing regional
processing capacity to facilitate co-packing and
tolling for regionally produced milk from multiple
regional small dairy operations (as determined based on
the small business size standard for the applicable
North American Industry Classification System code
described in section 121.201 of title 13, Code of
Federal Regulations (or a successor regulation)).
(2) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $50,000,000 for each of fiscal years 2027 through
2031.
(d) LAMP Investments.--Section 210A of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1627c) is amended--
(1) in subsection (c)--
(A) in paragraph (3), by striking ``and'' at the
end;
(B) in paragraph (4), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(5) ensure that the Program is carried out in--
``(A) each State (as defined in section 207);
``(B) American Samoa;
``(C) Puerto Rico; and
``(D) the Northern Mariana Islands.''; and
(2) in subsection (i)--
(A) in paragraph (1), by striking ``$50,000,000 for
fiscal year 2019'' and inserting ``$200,000,000 for
fiscal year 2027''; and
(B) in paragraph (2), by striking ``$20,000,000 for
fiscal year 2019'' and inserting ``$75,000,000 for
fiscal year 2027''.
(e) Availability to States and Territories.--The Secretary shall
carry out each program established under subsections (a) and (c) in--
(1) each of the 50 States;
(2) American Samoa;
(3) Puerto Rico;
(4) the Northern Mariana Islands;
(5) the United States Virgin Islands; and
(6) Guam.
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