---
kind: "section"
citation: "7 U.S.C. § 7981"
title: "7"
title_heading: "Agriculture"
number: "7981"
heading: "Milk price support program"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7981"
units:
  - "Chapter 106 — Commodity Programs"
  - "Subchapter V — Dairy"
---

# §7981. Milk price support program

- (a) **Support activities—** During the period beginning on June 1, 2002, and ending on December 31, 2007, the [Secretary](/usc/7/7901.md?p=13) of Agriculture shall support the price of milk produced in the 48 contiguous [States](/usc/7/7901.md?p=14) through the purchase of cheese, butter, and nonfat dry milk produced from the milk.
- (b) **Rate—** During the period specified in [subsection (a)](#a), the price of milk shall be supported at a rate equal to $9.90 per hundredweight for milk containing 3.67 percent butterfat.
- (c) **Purchase prices—**
  - (1) **Uniform prices—** The support purchase prices under this section for each of the products of milk (butter, cheese, and nonfat dry milk) announced by the [Secretary](/usc/7/7901.md?p=13) shall be the same for all of that product sold by [persons](/usc/7/499a.md?p=b-1) offering to sell the product to the [Secretary](/usc/7/7901.md?p=13).
  - (2) **Sufficient prices—** The purchase prices shall be sufficient to enable plants of average efficiency to pay [producers](/usc/7/7901.md?p=12), on average, a price that is not less than the rate of price support for milk in effect under [subsection (b)](#b).
- (d) **Special rule for butter and nonfat dry milk purchase prices—**
  - (1) **Allocation of purchase prices—** The [Secretary](/usc/7/7901.md?p=13) may allocate the rate of price support between the purchase prices for nonfat dry milk and butter in a manner that will result in the lowest level of expenditures by the Commodity Credit Corporation or achieve such other objectives as the [Secretary](/usc/7/7901.md?p=13) considers appropriate. Not later than 10 days after making or changing an allocation, the [Secretary](/usc/7/7901.md?p=13) shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of the allocation. [Section 553 of title 5](/usc/5/553.md) shall not apply with respect to the implementation of this section.
  - (2) **Timing of purchase price adjustments—** The [Secretary](/usc/7/7901.md?p=13) may make any such adjustments in the purchase prices for nonfat dry milk and butter the [Secretary](/usc/7/7901.md?p=13) considers to be necessary not more than twice in each calendar year.
- (e) **Commodity Credit Corporation—** The [Secretary](/usc/7/7901.md?p=13) shall carry out the program authorized by this section through the Commodity Credit Corporation.

## Source credit

(Pub. L. 107–171, title I, § 1501, May 13, 2002, 116 Stat. 205.)