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senate Bill S. 889

Federal Milk Marketing Improvement Act of 2009

Bill Details

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Federal Milk Marketing Improvement Act of 2009

Official Title

A bill to amend the Agricultural Adjustment Act to require the Secretary of Agriculture to determine the price of all milk used for manufactured purposes, which shall be classified as Class II milk, by using the national average cost of production, and for other purposes.


Federal Milk Marketing Improvement Act of 2009 - Amends the Agricultural Adjustment Act, reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, to direct the Secretary of Agriculture to base the minimum Class II milk price on the average production cost of producing all milk in the 48 contiguous states. Directs the Secretary to: (1) announce the minimum price for Class II milk by November 1 of each year, with specified price adjustment dates; (2) use the Class II milk price as the basic formula price for all federal and state milk marketing orders and all unregulated milk production areas; and (3) estimate annual milk production and domestic consumption. States that the price of Class I (fluid) milk price in all federal and state milk marketing orders and all unregulated milk production areas shall be equal to the basic formula price plus the applicable Class I differential under federal and state milk marketing orders. Authorizes the Secretary, upon a determination of a positive dairy trade balance and excess production, to provide for a producer price reduction of not more than 5% of all milk produced in the 48 contiguous states and marketed by producers for commercial use. Prohibits imposition of producer charges for the cost of hauling milk or the conversion of raw milk to manufactured products. Sets forth provisions respecting: (1) milk inventory management; and (2) milk handler responsibilities. States that in the case of a federal milk order, disapproval of an amendment to the order shall not be considered disapproval of the order or of other terms of the order.

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      senate Committees
      Committee on Agriculture, Nutrition, and Forestry
    IntroducedApril 23rd, 2009

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