§ 8772. Dairy forward pricing program

• (a) The Secretary shall establish a program under which milk producers and cooperative associations of producers are authorized to voluntarily enter into forward price contracts with milk handlers.
• (b) Payments made by milk handlers to milk producers and cooperative associations of producers, and prices received by milk producers and cooperative associations, in accordance with the terms of a forward price contract authorized by subsection (a), shall be treated as satisfying—
  • (1) all uniform and minimum milk price requirements of subparagraphs (B) and (F) of paragraph (5) of section 608c of this title ; and
  • (2) the total payment requirement of subparagraph (C) of that paragraph.
• (c)
  • (1) The 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) To assist milk handlers in complying with 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 obligations of the handler with regard to Class I milk usage.
• (d)
  • (1) A milk handler may not require participation in a forward pricing contract as a condition of the handler receiving milk from a producer or cooperative association of producers.
  • (2) A producer or cooperative association described in paragraph (1) may continue to have their 1 1 So in original. Probably should be “its”. milk priced in accordance with the minimum payment provisions of the Federal milk marketing order.
  • (3)
    • (A) The Secretary shall investigate complaints made by producers or cooperative associations of coercion by handlers to enter into forward contracts.
    • (B) If the Secretary finds evidence of coercion, the Secretary shall take appropriate action.
• (e)
  • (1) No forward price contract may be entered into under the program established under this section after September 30, 2023 .
  • (2) No forward contract entered into under the program may extend beyond September 30, 2029 .