A bill to effect any reduction in net expenditures for milk price support activities required by the Balanced Budget and Emergency Deficit Control Act of 1985.

(Reported to House from the Committee on Agriculture with amendment, H. Rept. 100-496)

Amends the Agricultural Act of 1949 to make permanent the Secretary of Agriculture's authority to reduce milk prices.

Provides that, notwithstanding the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) and the subsequent sequestration order issued by the President (under such Act), FY 1988 and succeeding fiscal year dairy expenditure reductions shall be implemented through a reduction in the price received by milk producers (through producer assessments) rather than through a reduction in Commodity Credit Corporation payments for dairy product purchases.

States that such reductions shall be no greater than needed to equal the reduction in milk support expenditures required by such order.