The bill repeals the Dairy Product Price Support Program, Dairy Export Incentive Program and the Federal Milk Marketing Order Review Commission, but extends the Dairy Forward Pricing Program, the Dairy Indemnity Program and the Dairy Promotion and Research Program.
Dairy Production Donation Program
Within 120 days of initial operation of the Margin Protection Program, USDA must establish and administer a dairy product donation program to address low-margin periods experienced by participating dairy operations; and provide nutrition assistance to individuals in low-income groups.
In general, whenever the actual dairy production margin has been $4.00 or less per hundredweight for each of the immediately preceding 2 months, USDA will purchase dairy products, at prevailing market prices, for a maximum of three consecutive months, or when the margin returns above $4.00/cwt.
USDA will consult with public and private nonprofit organizations organized to feed low-income populations to determine types and quantities of dairy products to purchase. USDA must distribute, but not store, the dairy products purchased under the dairy product donation program in a manner that encourages the domestic consumption.
To protect U.S. export markets, the program also has triggers to stop domestic dairy product purchases if U.S. prices are 5% or more above world prices.
The dairy product donation program shall end on Dec. 31, 2018.