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7 U.S.C. § 9051 — Adjustments of loans

Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 9051 — Adjustments of loans

**(a) Adjustment authority** Subject to subsection (e), the Secretary may make appropriate adjustments in the loan rates for any loan commodity (other than cotton) for differences in grade, type, quality, location, and other factors. **(b) Manner of adjustment** The adjustments under subsection (a) shall, to the maximum extent practicable, be made in such a manner that the average loan level for the commodity will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined in accordance with this subchapter and subtitle C. **(c) Adjustment on county basis** (1) **In general** — The Secretary may establish loan rates for a crop for producers in individual counties in a manner that results in the lowest loan rate being 95 percent of the national average loan rate, if those loan rates do not result in an increase in outlays. (2) **Prohibition** — Adjustments under this subsection shall not result in an increase in the national average loan rate for any year. **(d) Adjustment in loan rate for cotton** (1) **In general** — The Secretary may make appropriate adjustments in the loan rate for cotton for differences in quality factors. (2) **Types of adjustments** — Loan rate adjustments under paragraph (1) may include— (A) the use of non-spot market price data, in addition to spot market price data, that would enhance the accuracy of the price information used in determining quality adjustments under this subsection; (B) adjustments in the premiums or discounts associated with upland cotton with a staple length of 33 or above due to micronaire with the goal of eliminating any unnecessary artificial splits in the calculations of the premiums or discounts; and (C) such other adjustments as the Secretary determines appropr

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Stable record: federal_law:legal_authorities:record_usc_2f770d9b13a2dc156da28451
Source file: Laws/federal/codes/united-states-code/title-7/section-9051-adjustments-of-loans--10b939a138.md
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Source location: Title 7, Chapter 115, § 9051; chapter-115-agricultural-commodity-policy-and-programs.md

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**(a) Adjustment authority** Subject to subsection (e), the Secretary may make appropriate adjustments in the loan rates for any loan commodity (other than cotton) for differences in grade, type, quality, location, and other factors. **(b) Manner of adjustment** The adjustments under subsection (a) shall, to the maximum extent practicable, be made in such a manner that the average loan level for the commodity will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined in accordance with this subchapter and subtitle C. **(c) Adjustment on county basis** (1) **In general** — The Secretary may establish loan rates for a crop for producers in individual counties in a manner that results in the lowest loan rate being 95 percent of the national average loan rate, if those loan rates do not result in an increase in outlays. (2) **Prohibition** — Adjustments under this subsection shall not result in an increase in the national average loan rate for any year. **(d) Adjustment in loan rate for cotton** (1) **In general** — The Secretary may make appropriate adjustments in the loan rate for cotton for differences in quality factors. (2) **Types of adjustments** — Loan rate adjustments under paragraph (1) may include— (A) the use of non-spot market price data, in addition to spot market price data, that would enhance the accuracy of the price information used in determining quality adjustments under this subsection; (B) adjustments in the premiums or discounts associated with upland cotton with a staple length of 33 or above due to micronaire with the goal of eliminating any unnecessary artificial splits in the calculations of the premiums or discounts; and (C) such other adjustments as the Secretary determines appropriate, after consultations conducted in accordance with paragraph (3). (3) **Consultation with private sector** (A) *Prior to revision* — In making adjustments to the loan rate for cotton (including any review of the adjustments) as provided in this subsection, the Secretary shall consult with representatives of the United States cotton industry. (B) *Inapplicability of chapter 10 of title 5* — Chapter 10 of title 5 shall not apply to consultations under this subsection. (4) **Review of adjustments** — The Secretary may review the operation of the upland cotton quality adjustments implemented pursuant to this subsection and may make further adjustments to the administration of the loan program for upland cotton, by revoking or revising any adjustment taken under paragraph (2). **(e) Rice** The Secretary shall not make adjustments in the loan rates for long grain rice and medium grain rice, except for differences in grade and quality (including milling yields).

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 9053 — 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** — The calculation required by this subsection shall be made as soon as practicable using the full-month price of the applicable reference month.

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 9054 — Dairy margin coverage

**(a) In general** The Secretary shall continue to administer a dairy margin coverage program for dairy producers under which participating dairy operations are paid a dairy margin coverage payment when actual dairy production margins are less than the threshold levels for a dairy margin coverage payment. **(b) Regulations** Subpart A of part 1430 of title 7, Code of Federal Regulations (as in effect on December 20, 2018), shall remain in effect for dairy margin coverage beginning with the 2019 calendar year, except to the extent that the regulations are inconsistent with any provision of this Act.

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 9055 — Participation of dairy operations in dairy margin coverage

**(a) Eligibility** All dairy operations in the United States shall be eligible to participate in dairy margin coverage to receive dairy margin coverage payments. **(b) Registration process** (1) **In general** — The Secretary shall specify the manner and form by which a participating dairy operation may register to participate in dairy margin coverage, including the establishment of a date each calendar year by which a dairy operation shall register for the calendar year. (2) **Extension of election period for 2018 calendar year** (A) *In general* — The Secretary shall extend the election period for the 2018 calendar year by not less than 90 days after February 9, 2018, or such additional period as the Secretary determines is necessary for dairy operations to make new elections to participate for that calendar year, including dairy operations that elected to so participate before February 9, 2018. (B) *Retroactive program option* — In the case of a dairy operation that, by operation of subsection (d) (as in effect on the day before December 20, 2018), was ineligible to participate in the margin protection program for any part of calendar year 2018, the Secretary shall establish a new election period for that calendar year that ends on a date that is not less than 90 days after December 20, 2018, and the Secretary determines is necessary for dairy operations to make new elections to participate in the margin protection program (as in effect on the day before December 20, 2018) for that calendar year, including dairy operations that elected to participate in the livestock gross margin for dairy program under the Federal Crop Insurance Act ([7 U.S.C. 1501](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1501&num=0&edition=prelim) et seq

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 9056 — Production history of participating dairy operations

**(a) Production history** Except as provided in subsection (b), the production history of a dairy operation for dairy margin coverage is equal to the highest annual milk marketings of the participating dairy operation during any 1 of the 2021, 2022, or 2023 calendar years. **(b) Election by new dairy operations** 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: (1) The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount. (2) 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. **(c) Required information** A participating dairy operation shall provide all information that the Secretary may require in order to establish the production history of the participating dairy operation for purposes of participating in dairy margin coverage. **(d) Limitation on changes to business structure** The Secretary may not make dairy margin coverage payments to a participating dairy operation if the Secretary determines that the participating dairy operation has reorganized the structure of such operation solely for the purpose of qualifying as a new operation under subsection (b).

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 9057 — Dairy margin coverage payments

**(a) Coverage level threshold and coverage percentage** (1) **Coverage level threshold** (A) *In general* — For purposes of receiving dairy margin coverage payments for a month, a participating dairy operation shall annually 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, $8.00, $8.50, $9.00, or $9.50. (B) *Applicability* — Except as provided in subparagraph (C), the coverage level threshold elected under subparagraph (A) shall apply to the covered production elected by the participating dairy operation under paragraph (2). (C) *Second coverage election for tier II* — In 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 6,000,000 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 6,000,000 pounds included in the covered production elected by the participating dairy operation. (2) **Coverage percentage** — For purposes of receiving dairy margin coverage payments for a month, a participating dairy operation shall annually elect a percentage of coverage, in 5-percent increments, not exceeding 95 percent of the production history of the participating dairy operation. **(b) Payment threshold** A participating dairy operation shall receive a dairy margin coverage payment whenever the average actual dairy production margin for a month is less than the coverage level threshold selected by the participat

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 9058 — 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section9056/a/2&num=0&edition=prelim); (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 6,000,000 pounds of production** (1) **In general** — For the first 6,000,000 pounds of milk marketings included in the production history of a participating dairy operation, the premium per hundredweight for each coverage level is specified in the table contained in paragraph (2). (2) **Producer premiums** — Except as provided in subsection (g), the following annual premiums apply: Coverage LevelPremium per Cwt. $4.00None $4.50$0.0025 $5.00$0.005 $5.50$0.030 $6.00$0.050 $6.50$0.070 $7.00$0.080 $7.50$0.090 $8.00$0.100 $8.50$0.105 $9.00$0.110 $9.50$0.150 **(c) Tier II: premium per hundredweight for production in excess of 6,000,000 pounds** (1) **In general** — For milk marketings in excess of 6,000,000 pounds included in the production history of a participating dairy operation, the premium per hundredweight for each coverage level is specified in the table contained in paragraph (2). (2) **Producer premiums** — Except as provided in subsection (g), the following annual premiums apply: Coverage LevelPremium per Cwt. $4.00None $4.50$0.0025 $5.00$0.005 $5.50$0.100 $6.00$0.310 $6.50$0.650 $7.00$1.107 $7.50$1.413 $8.00$1.813 **(d) Time for pay

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 9059 — 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section9054&num=0&edition=prelim) or is in arrears on premium payments under [section 9057 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section9057&num=0&edition=prelim)— (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** The Secretary may take such action as necessary to collect administrative fees and premium payments for participation in dairy margin coverage.

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 9060 — Duration

Dairy margin coverage shall end on December 31, 2031.

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 9071 — Administration and enforcement

**(a) In general** The Secretary shall promulgate regulations to address administrative and enforcement issues involved in carrying out dairy margin coverage. **(b) Reconstitution** The Secretary shall promulgate regulations to prohibit a dairy producer from reconstituting a dairy operation for the purpose of the dairy producer receiving dairy margin coverage payments. **(c) Administrative appeals** Using authorities under [section 1308(h) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1308/h&num=0&edition=prelim) and subtitle H of the Department of Agriculture Reorganization Act ([7 U.S.C. 6991](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section6991&num=0&edition=prelim) et seq.), the Secretary shall promulgate regulations to provide for administrative appeals of decisions of the Secretary that are adverse to participants of dairy margin coverage.

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 9051 — Definitions

Page 2282 TITLE 7—AGRICULTURE § 9051 unnecessary artificial splits in the calcula- tions of the premiums or discounts; and (C) such other adjustments as the Sec- retary determines appropriate, after con- sultations conducted in accordance with paragraph (3). (3) Consultation with private sector (A) Prior to revision In making adjustments to the loan rate for cotton (including any review of the adjust- ments) as provided in this subsection, the Secretary shall consult with representatives of the United States cotton industry. (B) Inapplicability of chapter 10 of title 5 Chapter 10 of title 5 shall not apply to con- sultations under this subsection. (4) Review of adjustments The Secretary may review the operation of the upland cotton quality adjustments imple- mented pursuant to this subsection and may make further adjustments to the administra- tion of the loan program for upland cotton, by revoking or revising any adjustment taken under paragraph (2). (e) Rice The Secretary shall not make adjustments in the loan rates for long grain rice and medium grain rice, except for differences in grade and quality (including milling yields). (Pub. L. 113–79, title I, § 1210, Feb. 7, 2014, 128 Stat. 686; Pub. L. 117–286, § 4(a)(43), Dec. 27, 2022, 136 Stat. 4310.) Editorial Notes REFERENCES IN TEXT Subtitle C, referred to in subsec. (b), means subtitle C of title I of Pub. L. 113–79, Feb. 7, 2014, 128 Stat. 687, which amended sections 1359bb, 1359ll, and 7272 of this title. AMENDMENTS 2022—Subsec. (d)(3)(B). Pub. L. 117–286 substituted ‘‘chapter 10 of title 5’’ for ‘‘Federal Advisory Com- mittee Act’’ in heading and ‘‘Chapter 10 of title 5’’ for ‘‘The Federal Advisory Committee Act (5 U.S.C. App.)’’ in text. SUBCHAPTER III—DAIRY PART A—DAIRY MARGIN

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