1. U.S. Code
  2. title 7
  3. chapter 115
  4. subchapter III
  5. part A
  6. § 9060

Collapse to view only § 9060. Administration and enforcement

§ 9051. Definitions
In this part:
(1) Actual dairy production margin
(2) All-milk price
(3) Average feed cost
The term “average feed cost” means the average cost of feed used by a dairy operation to produce a hundredweight of milk, determined under section 9052 of this title using the sum of the following:
(A) The product determined by multiplying 1.0728 by the price of corn per bushel.
(B) The product determined by multiplying 0.00735 by the price of soybean meal per ton.
(C) The product determined by multiplying 0.0137 by the price of alfalfa hay per ton.
(4) Dairy operation
(A) In general
The term “dairy operation” means, as determined by the Secretary, 1 or more dairy producers that produce and market milk as a single dairy operation in which each dairy producer—
(i) shares in the risk of producing milk; and
(ii) makes contributions (including land, labor, management, equipment, or capital) to the dairy operation of the individual or entity, which are at least commensurate with the individual or entity’s share of the proceeds of the operation.
(B) Additional ownership structures
(5) Dairy margin coverage
(6) Dairy margin coverage payment
(7) Participating dairy operation
(8) Production history
(9) Secretary
(10) United States
(Pub. L. 113–79, title I, § 1401, Feb. 7, 2014, 128 Stat. 688; Pub. L. 115–123, div. F, § 60101(b)(1)(A), Feb. 9, 2018, 132 Stat. 311; Pub. L. 115–334, title I, §§ 1401(k)(2), 1404(b)(2), Dec. 20, 2018, 132 Stat. 4516, 4521.)

CITE AS: 7 USC 9051

§ 9052. Calculation of average feed cost and actual dairy production margins
(a) Calculation of average feed cost
The Secretary shall calculate the national average feed cost for each month using the following data:
(1) The price of corn for a month shall be the price received during that month by farmers in the United States for corn, as reported in the monthly Agricultural Prices report by the Secretary.
(2) The price of soybean meal for a month shall be the central Illinois price for soybean meal, as reported in the Market News–Monthly Soybean Meal Price Report by the Secretary.
(3) The price of alfalfa hay for a month shall be the price received during that month by farmers in the United States for alfalfa hay, as reported in the monthly Agricultural Prices report by the Secretary.
(b) Calculation of actual dairy production margin
(1) In general
For use in dairy margin coverage, the Secretary shall calculate the actual dairy production margin for each month by subtracting—
(A) the average feed cost for that month, determined in accordance with subsection (a); from
(B) the all-milk price for that month.
(2) Time for calculation
(Pub. L. 113–79, title I, § 1402, Feb. 7, 2014, 128 Stat. 689; Pub. L. 115–123, div. F, § 60101(b)(1)(B), Feb. 9, 2018, 132 Stat. 311; Pub. L. 115–334, title I, § 1401(k)(3), Dec. 20, 2018, 132 Stat. 4516.)

CITE AS: 7 USC 9052

§ 9053. Dairy margin coverage
(a) In general
(b) Regulations
(Pub. L. 113–79, title I, § 1403, Feb. 7, 2014, 128 Stat. 689; Pub. L. 115–334, title I, § 1401(k)(4), Dec. 20, 2018, 132 Stat. 4516.)

CITE AS: 7 USC 9053

§ 9054. Participation of dairy operations in dairy margin coverage
(a) Eligibility
(b) Registration process
(1) In general
(2) Extension of election period for 2018 calendar year
(A) In general
(B) Retroactive program option
(3) Election period for 2019 calendar year
For the 2019 calendar year, the Secretary shall—
(A) open the election period not later than 60 days after the effective date described in section 1401(m) of the Agriculture Improvement Act of 2018; and
(B) hold that election period open for not less than 90 days.
(4) Treatment of multiproducer dairy operation
(A) In general
(B) Rule of construction
(5) Treatment of producers with multiple dairy operations
(c) Annual administrative fee
(1) Administrative fee required
Each participating dairy operation shall—
(A) pay an administrative fee to register to participate in dairy margin coverage; and
(B) pay the administrative fee annually through the duration of dairy margin coverage specified in section 9059 of this title.
(2) Amount of fee
(3) Use of fees
(4) Exemption
(Pub. L. 113–79, title I, § 1404, Feb. 7, 2014, 128 Stat. 690; Pub. L. 115–123, div. F, § 60101(b)(2), Feb. 9, 2018, 132 Stat. 311; Pub. L. 115–334, title I, § 1401(d), (e), (k)(5), Dec. 20, 2018, 132 Stat. 4512, 4517.)

CITE AS: 7 USC 9054

§ 9055. Production history of participating dairy operations
(a) Production history
(1) In general
(2) Adjustment
(3) Continued applicability of base production history
(4) Base production history adjustment for participating dairy operations with production of less than 5,000,000 pounds
(A) In general
If the amount determined under paragraph (1) is less than 5,000,000 pounds, the production history of the dairy operation for dairy margin coverage shall be equal to—
(i) the amount determined under paragraph (1); plus
(ii) 75 percent of the amount described in subparagraph (B).
(B) Amount
The amount referred to in subparagraph (A)(ii) is, with respect to a dairy operation, the amount equal to—
(i) the production volume of such dairy operation for the 2019 milk marketing year; minus
(ii) the amount determined under paragraph (1).
(b) Election by new dairy operations
(1) Dairy operations with less than 1 year of production history
In the case of a participating dairy operation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the production history of the participating dairy operation:
(A) The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount.
(B) An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary.
(2) Dairy operations with 1 year or more of production history
(3) Adjustment
(c) Required information
(d) Limitation on changes to business structure
(Pub. L. 113–79, title I, § 1405, Feb. 7, 2014, 128 Stat. 690; Pub. L. 115–123, div. F, § 60101(b)(3), Feb. 9, 2018, 132 Stat. 311; Pub. L. 115–334, title I, § 1401(f), (k)(6), Dec. 20, 2018, 132 Stat. 4513, 4517; Pub. L. 118–22, div. B, title I, § 102(c)(2)(A), Nov. 17, 2023, 137 Stat. 115.)

CITE AS: 7 USC 9055

§ 9056. Dairy margin coverage payments
(a) Coverage level threshold and coverage percentage
(1) Coverage level threshold
(A) In general
(B) Applicability
(C) Second coverage election for tier IIIn the case of a participating dairy operation that elects a coverage level threshold of $8.50, $9.00, or $9.50 under subparagraph (A)—
(i) that coverage level threshold shall apply to the first 5,000,000 pounds of milk marketings included in the covered production elected by the participating dairy operation; and
(ii) the participating dairy operation shall elect a coverage level threshold that is equal to $4.00, $4.50, $5.00, $5.50, $6.00, $6.50, $7.00, $7.50, or $8.00 to apply to milk marketings in excess of 5,000,000 pounds included in the covered production elected by the participating dairy operation.
(2) Coverage percentage
(b) Payment threshold
(c) Amount of paymentThe dairy margin coverage payment for the participating dairy operation shall be determined as follows:
(1) The Secretary shall calculate the amount by which the coverage level threshold selected by the participating dairy operation exceeds the average actual dairy production margin for the month.
(2) The amount determined under paragraph (1) shall be multiplied by—
(A) the coverage percentage selected by the participating dairy operation; and
(B) the production history of the participating dairy operation divided by 12.
(Pub. L. 113–79, title I, § 1406, Feb. 7, 2014, 128 Stat. 691; Pub. L. 115–123, div. F, § 60101(b)(1)(C), Feb. 9, 2018, 132 Stat. 311; Pub. L. 115–334, title I, § 1401(g), (k)(7), Dec. 20, 2018, 132 Stat. 4513, 4517.)

CITE AS: 7 USC 9056

§ 9057. Premiums for dairy margin coverage
(a) Calculation of premiums
For purposes of participating in dairy margin coverage, a participating dairy operation shall pay an annual premium equal to the product obtained by multiplying—
(1) the coverage percentage elected by the participating dairy operation under section 9056(a)(2) of this title;
(2) the production history of the participating dairy operation; and
(3) the premium per hundredweight of milk imposed by this section for the coverage level selected.
(b) Tier I: premium per hundredweight for first 5,000,000 pounds of production
(1) In general
(2) Producer premiums
(c) Tier II: premium per hundredweight for production in excess of 5,000,000 pounds
(1) In general
(2) Producer premiums
(d) Time for payment of premium
(e) Premium obligations
(1) Pro-ration of premium for new participants
(2) Legal obligation
(f) Repayment of premiums
(1) In general
Each dairy operation described in paragraph (2) shall be eligible to receive a repayment from the Secretary in an amount equal to the difference between—
(A) the total amount of premiums paid by the participating dairy operation under this section for each applicable calendar year; and
(B) the total amount of payments made to the participating dairy operation under section 9056 of this title for that calendar year.
(2) Eligibility
A dairy operation that is eligible to receive a repayment under paragraph (1) is a dairy operation that—
(A) participated in the margin protection program, as in effect for any of calendar years 2014 through 2017; and
(B) submits to the Secretary an application for the repayment at such time, in such manner, and containing such information as the Secretary may require.
(3) Method of repayment
A dairy operation that is eligible to receive a repayment under paragraph (1) shall elect to receive the repayment—
(A) in an amount equal to 75 percent of the repayment calculated under that paragraph as credit that may be used by the dairy operation for dairy margin coverage premiums; or
(B) in an amount equal to 50 percent of the repayment calculated under that paragraph as a direct cash repayment.
(4) Applicability
(g) Premium discount
The premium per hundredweight specified in the tables contained in subsections (b) and (c) for each coverage level shall be reduced by 25 percent in accordance with the following:
(1) In general
(2) New dairy operations
For each applicable calendar year through 2023, for a participating dairy operation that—
(A) establishes a production history pursuant to section 9055(b) of this title; and
(B) makes a 1-time election of coverage level in a tier and of a percentage of coverage under section 9056(a) of this title for the period beginning with the first available calendar year and ending in December 2023.
(3) Full participation required
Notwithstanding the annual elections under section 9056(a) of this title—
(A) a 1-time enrollment under this subsection shall remain in effect for the full duration applicable to a participating dairy operation in accordance with paragraph (1) or (2)(B), as applicable; and
(B) a participating dairy operation that makes a 1-time enrollment under this subsection and is noncompliant under section 9058 of this title shall be subject to that section.
(Pub. L. 113–79, title I, § 1407, Feb. 7, 2014, 128 Stat. 691; Pub. L. 115–123, div. F, § 60101(b)(4), Feb. 9, 2018, 132 Stat. 312; Pub. L. 115–334, title I, § 1401(h)–(j), (k)(8), Dec. 20, 2018, 132 Stat. 4514, 4515, 4517.)

CITE AS: 7 USC 9057

§ 9058. Effect of failure to pay administrative fees or premiums
(a) Loss of benefits
A participating dairy operation that fails to pay the required annual administrative fee under section 9054 of this title or is in arrears on premium payments under section 9057 of this title—
(1) remains legally obligated to pay the administrative fee or premiums, as the case may be; and
(2) may not receive dairy margin coverage payments until the fees or premiums are fully paid.
(b) Enforcement
(Pub. L. 113–79, title I, § 1408, Feb. 7, 2014, 128 Stat. 693; Pub. L. 115–334, title I, § 1401(k)(9), Dec. 20, 2018, 132 Stat. 4517.)

CITE AS: 7 USC 9058

§ 9059. Duration

Dairy margin coverage shall end on December 31, 2024.

(Pub. L. 113–79, title I, § 1409, Feb. 7, 2014, 128 Stat. 693; Pub. L. 115–334, title I, § 1401(l), Dec. 20, 2018, 132 Stat. 4518; Pub. L. 118–22, div. B, title I, § 102(c)(2)(B)(i), Nov. 17, 2023, 137 Stat. 115.)

CITE AS: 7 USC 9059

§ 9060. Administration and enforcement
(a) In general
(b) Reconstitution
(c) Administrative appeals
(Pub. L. 113–79, title I, § 1410, Feb. 7, 2014, 128 Stat. 693; Pub. L. 115–334, title I, § 1401(k)(10), Dec. 20, 2018, 132 Stat. 4518.)

CITE AS: 7 USC 9060