Summary: H.R.2837 — 102nd Congress (1991-1992)All Information (Except Text)

Bill summaries are authored by CRS.

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Reported to House amended, Part III (10/17/1991)

Milk Inventory Management Act of 1991 - Amends the Agricultural Act of 1949 to require the Secretary of Agriculture (Secretary) to make an annual estimate of Commodity Credit Corporation (CCC) purchases of milk and milk products.

Sets milk price support levels at: (1) $10.10 per hundredweight for 1991; (2) $12.60 per hundredweight for 1992 and 1993; (3) $12.10 per hundredweight for 1994; and (4) $11.60 per hundredweight for 1995.

Limits the price support program to the 48 contiguous States.

Sets manufacturing allowances (defined as an amount added to milk manufactured into butter and nonfat dry milk or into cheese that when added to the milk support price will enable manufacturing plants to pay producers not less that the support price) at $1.37 per hundredweight for butter and nonfat dry milk, and at $1.52 per hundredweight for cheese.

Reduces support prices if estimated CCC milk and milk product purchases are between five billion and seven billion pounds. Authorizes producer reduction refunds under specified circumstances.

Establishes a two-tiered reduction if estimated CCC purchases exceed seven billion pounds. Requires such reductions to ensure that: (1) production is reduced to CCC purchase levels of not more than five billion pounds; and (2) specified CCC and National Dairy Inventory Management Board purchase, repayment, and administrative expenses are met.

Establishes a National Dairy Inventory Management Board (Board), which shall terminate on July 31, 1996, or such later date as the Secretary determines. Requires the Board to: (1) make reduction rate determinations; and (2) allocate funds to manage and market excess inventory acquisitions (annual milk price support purchases in excess of five billion pounds). States that: (1) excess inventory shall be disposed of only in export markets (sales and donations) and through domestic food program donations; and (2) export sale proceeds shall be made available to lower producer price reductions.

Provides that if annual CCC purchase estimates exceed five billion pounds the Secretary shall establish a dairy inventory management program to acquire and dispose of excess inventory. Requires the program to: (1) provide milk market price stability and mechanisms to curb excess production; and (2) institute excess milk export programs.

Authorizes the Board to: (1) develop a dairy heifer export program (with price safeguards for beef, pork, and poultry producers); and (2) establish and operate an export facilitation program to move milk products from nongovernmental stocks into the export market at market-clearing prices.

Limits annual CCC purchases of excess milk and milk products to five billion pounds, with specified exceptions. Makes purchases in excess of such amount the responsibility of the Board.

Amends the Agricultural Adjustment Act, as reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, to establish marketing order milk solid percentages for whole, lowfat, and skim milk. Authorizes Federal retail milk testing. Requires State marketing order compliance.

Amends the Packers and Stockyards Act, 1921 to establish milk producer and handler trusts. Requires handlers to: (1) hold all milk or milk products, inventories, receivables or payments in trust for all unpaid producers and handlers until receipt of full payment; (2) distribute funds proportionately in cases of insufficient payment; and (3) pay for milk upon receipt according to applicable Federal, State, or private requirements. Requires unpaid producers or handlers to notify the Secretary regarding failure to pay or dishonored payment in order to preserve their rights. Authorizes appropriations.

Amends the Agricultural Act of 1949 to require: (1) annual CCC milk purchase estimates to include estimates of dairy cattle slaughtering; and (2) additional Department of Agriculture beef purchases in any year in which dairy cattle slaughtering exceeds specified levels. Encourages the Secretary of Defense and other Federal and State agencies to increase red meat use in their programs.

Authorizes FY 1992 appropriations for specified nutrition programs (other than food stamps and the special supplemental food program for women, infants, and children (WIC)) under the Child Nutrition Act of 1966 and the National School Lunch Act to offset milk price increases resulting from this Act. Directs the Secretary to make related food payment rate adjustments for such programs.

Authorizes similar offsetting appropriations for: (1) FY 1992 through 1995 for WIC; and (2) FY 1992 for food stamps.

Amends the Food Security Act of 1985 to direct the CCC to establish a dairy heifer export program through qualified exporter payments. Gives priority to proposals that include herd management or nutritional training, or veterinary and other technical services.

Modifies the dairy termination program to permit a producer whose land or milk production facilities have been rendered unusable by a natural disaster after October 1, 1990, to transfer the production unit (including animals and equipment) to an idled farm, without penalty, under specified conditions.