Summary: S.1640 — 112th Congress (2011-2012)All Information (Except Text)

There is one summary for S.1640. Bill summaries are authored by CRS.

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Introduced in Senate (10/03/2011)

Federal Milk Marketing Improvement Act of 2011 - Amends the Agricultural Adjustment Act, reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, to direct the Secretary of Agriculture (USDA) to base the minimum Class II milk price on the national average cost of production which shall be the difference between: (1) the national average of the operating cost and the allocated overhead cost of producing all milk in the 48 contiguous states, and (2) the opportunity cost for unpaid labor of producing all milk in such 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; and (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.

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.

Directs the Secretary to: (1) identify all dairy products imported into and exported from the United States, and determine each product's quantity of raw milk; (2) identify the total quantity of milk produced by each dairy producer or farming operation during the three preceding years; (3) if the maximum quantity of milk and milk products has been purchased for mandated federal food programs, determine whether an excess quantity of milk and milk products is being produced for the national domestic market; (4) estimate annual milk production and domestic consumption; and (5) upon a determination of a positive dairy trade balance and excess production, provide for a producer price reduction of up to 5% (not to exceed one-half the minimum Class II milk price) of all milk produced in the 48 contiguous states and marketed by producers for commercial use.

Provides new dairy producers with a limited exemption from price reductions.

Directs the Commodity Credit Corporation (CCC) to establish a dairy producer account.

Prohibits imposition of producer charges for the cost of converting raw milk to manufactured products.

States that: (1) disapproval of an amendment to a federal milk order shall not be considered disapproval of the order, and (2) a milk handler that purchases milk from a dairy producer shall assume title for the milk when it is pumped into a milk truck provided by or otherwise delivered to the milk handler.