---
kind: "section"
citation: "7 U.S.C. § 627"
title: "7"
title_heading: "Agriculture"
number: "627"
heading: "Dairy forward pricing pilot program"
release: "119-102"
url: "https://uscodex.org/usc/7/627"
units:
  - "Chapter 26 — Agricultural Adjustment"
  - "Subchapter III — Commodity Benefits"
---

# §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](/usc/7/6802.md?p=4-A-iii-III-bb) and cooperatives are authorized to voluntarily enter into forward price [contracts](/usc/7/518.md?p=4) with milk [handlers](/usc/7/2302.md?p=3-B).
- (b) **Minimum milk price requirements—** Payments made by milk [handlers](/usc/7/2302.md?p=3-B) to milk [producers](/usc/7/6802.md?p=4-A-iii-III-bb) and cooperatives, and prices received by milk [producers](/usc/7/6802.md?p=4-A-iii-III-bb) and cooperatives, under the forward [contracts](/usc/7/518.md?p=4) 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](/usc/7/608c.md); and
  - (2) the requirement of paragraph (C) of such subsection regarding total payments by each [handler](/usc/7/2302.md?p=3-B).
- (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](/usc/7/610.md?p=j) or directly burdens, obstructs, or affects [interstate or foreign commerce](/usc/7/610.md?p=j) in federally regulated milk.
  - (2) **Relation to Class I milk—** To assist milk [handlers](/usc/7/2302.md?p=3-B) in complying with the limitation in [paragraph (1)(A)](#c-1-A) without having to segregate or otherwise individually track the source and disposition of milk, a milk [handler](/usc/7/2302.md?p=3-B) may allocate milk receipts from [producers](/usc/7/6802.md?p=4-A-iii-III-bb), cooperatives, and other sources that are not subject to a forward [contract](/usc/7/518.md?p=4) to satisfy the [handler](/usc/7/2302.md?p=3-B)’s obligations with regard to Class I milk usage.
- (d) **Duration—** The [authority](/usc/7/2009aa.md?p=1) of the Secretary of Agriculture to carry out the pilot program shall terminate on December 31, 2004. No forward price [contract](/usc/7/518.md?p=4) 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 conduct a study on forward contracting between milk [producers](/usc/7/6802.md?p=4-A-iii-III-bb) and cooperatives and milk [handlers](/usc/7/2302.md?p=3-B) to determine the impact on milk prices paid to [producers](/usc/7/6802.md?p=4-A-iii-III-bb) in the [United States](/usc/7/6402.md?p=8). To obtain information for the study, the Secretary may use the [authorities](/usc/7/2009aa.md?p=1) available to the Secretary under [section 608d of this title](/usc/7/608d.md), subject to the confidentiality requirements of [subsection (2)](/usc/7/608d.md?p=2) of such section.
  - (2) **Report—** Not later than April 30, 2002, the Secretary shall submit to the [Committee](/usc/7/2132.md?p=n) on Agriculture, Nutrition and Forestry of the Senate and the [Committee](/usc/7/2132.md?p=n) on Agriculture of the House of Representatives a report containing the results of the study.

## Source credit

(May 12, 1933, ch. 25, title I, § 23, as added Pub. L. 106–113, div. B, § 1000(a)(8) [§ 3], Nov. 29, 1999, 113 Stat. 1536, 1501A–519.)

## Notes

### Editorial Notes

### Codification

Another section 23 of act May 12, 1933 amended former section 781 of Title 12, Banks and Banking.