Fair Milk Pricing for Farmers Act

#295 | HR Congress #119

Subjects:

Last Action: Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit. (2/14/2025)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Fair Milk Pricing for Farmers Act" is a proposed amendment to the Agricultural Marketing Act of 1946 that aims to enhance transparency in the dairy industry by requiring mandatory reporting of processing costs for dairy products.

Key provisions of the bill include:

1. **Expanded Reporting Requirements**: Manufacturers of dairy products will be required to report their production costs and product yield information for all products processed at a facility, not just for selected items. This requirement will help provide a clearer understanding of the costs associated with dairy processing.

2. **Regular Reporting**: The Secretary of Agriculture is tasked with compiling and publishing a report on these processing costs within three years of the bill's enactment, and subsequently every two years. This will ensure that the information is up-to-date and accessible.

Overall, the legislation seeks to support dairy farmers by promoting fair pricing practices and enhancing the transparency of cost structures within the dairy processing sector.

Possible Impacts

The "Fair Milk Pricing for Farmers Act" could affect people in several ways:

1. **Increased Transparency for Farmers**: By mandating the reporting of dairy products processing costs, farmers will have access to more detailed and transparent information about the costs associated with dairy processing. This can help them make better-informed decisions about pricing their products and negotiating contracts, potentially leading to fairer prices for their milk.

2. **Impact on Dairy Pricing**: The collection and publication of processing cost data could lead to more equitable pricing structures within the dairy market. If processors are required to disclose their costs, it may reduce price manipulation and ensure that farmers receive a fairer share of the retail price of milk, ultimately benefiting consumers through more stable pricing.

3. **Regulatory Burden on Processors**: While the act aims to promote fairness, it could also impose additional regulatory burdens on dairy processors. They may need to invest in systems to accurately track and report production costs, which could increase operational costs. This may lead to some processors passing these costs onto consumers or scaling back operations, which could impact employment and availability of dairy products in certain regions.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 295 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 295

    To amend the Agricultural Marketing Act of 1946 with respect to 
        mandatory reporting of dairy products processing costs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 9, 2025

 Mr. Langworthy (for himself, Mr. Van Orden, Mr. Morelle, Mr. Finstad, 
 Ms. Tenney, Mr. Moolenaar, Mr. Costa, Mr. Newhouse, and Mr. Valadao) 
 introduced the following bill; which was referred to the Committee on 
                              Agriculture

_______________________________________________________________________

                                 A BILL


 
    To amend the Agricultural Marketing Act of 1946 with respect to 
        mandatory reporting of dairy products processing costs.

    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 ``Fair Milk Pricing for Farmers Act''.

SEC. 2. MANDATORY REPORTING OF DAIRY PRODUCTS PROCESSING COSTS.

    Section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 
1637b) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)(ii), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(C) for each manufacturer required to report 
                under subparagraph (A) for any product, require that 
                manufacturer to report production cost and product 
                yield information, as determined by the Secretary, for 
                all products processed in the same facility or 
                facilities.''; and
                    (B) in paragraph (2)(A), by inserting ``products 
                and'' after ``those''; and
            (2) in subsection (d)--
                    (A) in the subsection heading, by striking 
                ``Electronic Reporting'' and inserting ``Reporting'';
                    (B) in paragraph (1)--
                            (i) in the heading, by striking 
                        ``Electronic Reporting'' and inserting 
                        ``Reporting''; and
                            (ii) by striking ``this section'' and 
                        inserting in its place ``subparagraphs (A) and 
                        (B) of subsection (b)(1)'';
                    (C) in paragraph (2), by striking ``this section'' 
                and inserting in its place ``subparagraphs (A) and (B) 
                of subsection (b)(1)''; and
                    (D) by adding at the end the following:
            ``(3) Dairy products processing costs.--Not later than 3 
        years after the date of enactment of this paragraph, and every 
        2 years thereafter, the Secretary shall publish a report 
        containing the information obtained under subparagraph (C) of 
        subsection (b)(1).''.
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