[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC627]
TITLE 7--AGRICULTURE
CHAPTER 26--AGRICULTURAL ADJUSTMENT
SUBCHAPTER III--COMMODITY BENEFITS
Sec. 627. Dairy forward pricing pilot program
(a) Pilot program required
Not later than 90 days after November 29, 1999, the Secretary of
Agriculture shall establish a temporary pilot program under which milk
producers and cooperatives are authorized to voluntarily enter into
forward price contracts with milk handlers.
(b) Minimum milk price requirements
Payments made by milk handlers to milk producers and cooperatives,
and prices received by milk producers and cooperatives, under the
forward contracts shall be deemed to satisfy--
(1) all regulated minimum milk price requirements of paragraphs
(B) and (F) of subsection (5) of section 608c of this title; and
(2) the requirement of paragraph (C) of such subsection
regarding total payments by each handler.
(c) Milk covered by pilot program
(1) Covered milk
The pilot program shall apply only with respect to the marketing
of federally regulated milk that--
(A) is not classified as Class I milk or otherwise intended
for fluid use; and
(B) is in the current of interstate or foreign commerce or
directly burdens, obstructs, or affects interstate or foreign
commerce in federally regulated milk.
(2) Relation to Class I milk
To assist milk handlers in complying with the limitation in
paragraph (1)(A) without having to segregate or otherwise
individually track the source and disposition of milk, a milk
handler may allocate milk receipts from producers, cooperatives, and
other sources that are not subject to a forward contract to satisfy
the handler's obligations with regard to Class I milk usage.
(d) Duration
The authority of the Secretary of Agriculture to carry out the pilot
program shall terminate on December 31, 2004. No forward price contract
entered into under the program may extend beyond that date.
(e) Study and report on effect of pilot program
(1) Study
The Secretary of Agriculture shall c
