Fair Milk Pricing for Farmers Act

#581 | S Congress #119

Subjects:

Last Action: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry. (2/13/2025)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Fair Milk Pricing for Farmers Act" is proposed legislation aimed at enhancing transparency in the dairy industry. It amends the Agricultural Marketing Act of 1946, specifically by requiring dairy product manufacturers to report detailed information about their processing costs and product yields.

Key provisions include:

1. **Mandatory Reporting**: Dairy manufacturers will be required to disclose their production costs and yields for all products processed at their facilities. This information will help provide a clearer understanding of the economic factors affecting dairy pricing.

2. **Periodic Reporting**: The Secretary of Agriculture is mandated to publish a report containing this cost information at least every two years, beginning three years after the law’s enactment.

Overall, the Act seeks to promote fair pricing for dairy farmers by ensuring that relevant cost data is systematically collected and made available, potentially leading to better market conditions for dairy producers.

Possible Impacts

The "Fair Milk Pricing for Farmers Act," as outlined in the provided legislation, could affect people in several ways:

1. **Enhanced Price Transparency for Farmers**: By mandating the reporting of dairy products processing costs, the Act could provide farmers with better insights into the costs associated with milk processing. This transparency can help farmers make more informed decisions regarding pricing and production strategies, ultimately supporting their livelihoods and enabling them to negotiate better prices with processors.

2. **Impact on Retail Prices for Consumers**: The requirement for reporting production costs may lead to more stable and fair pricing in the dairy market. If processors can no longer conceal costs or manipulate pricing, consumers may benefit from more consistent pricing for dairy products. This could help to alleviate sudden price spikes that can occur due to lack of transparency in processing costs.

3. **Regulatory Compliance Burden on Processors**: While the Act aims to promote fairness, it may also impose additional reporting and compliance burdens on dairy processors. These businesses will need to allocate resources for accurate cost reporting and compliance with the new regulations. Depending on the size and capability of the processing facilities, this could affect their operational budgets and potentially lead to higher prices for consumers if the costs of compliance are passed down the supply chain.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 581 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                 S. 581

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 13, 2025

Mrs. Gillibrand (for herself, Ms. Collins, and Mrs. Shaheen) introduced 
the following bill; which was read twice and referred to the Committee 
                on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 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 paragraph heading, by striking 
                        ``Electronic reporting'' and inserting 
                        ``Reporting''; and
                            (ii) by striking ``this section'' and 
                        inserting ``subparagraphs (A) and (B) of 
                        subsection (b)(1)'';
                    (C) in paragraph (2), by striking ``this section'' 
                and inserting ``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 subsection 
        (b)(1)(C).''.
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