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7 U.S.C. § 9053 — Calculation of average feed cost and actual dairy production margins

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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Source location: Title 7, Chapter 115, § 9053; chapter-115-agricultural-commodity-policy-and-programs.md

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

7 U.S.C. § 8782 — Repealed. Pub. L. 113–79, title I, § 1422(b)(1), Feb. 7, 2014, 128 Stat. 695

### Statutory Notes Pub. L. 110–234, title I, § 1506, May 22, 2008, 122 Stat. 994; Pub. L. 110–246, § 4(a), title I, § 1506, June 18, 2008, 122 Stat. 1664, 1723; Pub. L. 112–240, title VII, § 701(b)(2)(B), Jan. 2, 2013, 126 Stat. 2363; Pub. L. 113–79, title I, § 1422(a), Feb. 7, 2014, 128 Stat. 694, related to the milk income loss contract program. #### Effective Date of Repeal Pub. L. 113–79, title I, § 1422(b), Feb. 7, 2014, 128 Stat. 695, provided that: “(1) Repeal.—Effective on the termination date, section 1506 of the Food, Conservation, and Energy Act of 2008 ([7 U.S.C. 8773](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8773&num=0&edition=prelim)) is repealed. “(2) Termination date defined.—In paragraph (1), the term ‘termination date’ means the earlier of the following:“(A) The date on which the Secretary [of Agriculture] certifies to Congress that the margin protection program required by section 1403 [[7 U.S.C. 9053](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section9053&num=0&edition=prelim)] is operational. “(B) September 1, 2014.”

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

7 U.S.C. § 9052 — Definitions

In this part: (1) **Actual dairy production margin** — The term “actual dairy production margin” means the difference between the all-milk price and the average feed cost, as calculated under [section 9052 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section9052&num=0&edition=prelim). (2) **All-milk price** — The term “all-milk price” means the average price received, per hundredweight of milk, by dairy operations for all milk sold to plants and dealers in the United States, as determined by the Secretary. (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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section9052&num=0&edition=prelim) 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* — The Secretary shall determine additional ownership structures to be covered by the defi

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

7 U.S.C. § 9053 — Dairy margin coverage

Page 2283 TITLE 7—AGRICULTURE § 9053 Islands of the United States, and any other territory or possession of the 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.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–334, § 1404(b)(2), struck out ‘‘and part B’’ after ‘‘this part’’ in introductory provisions. Par. (4). Pub. L. 115–123 redesignated par. (5) as (4) and struck out former par. (4). Prior to amendment, text read as follows: ‘‘The term ‘consecutive 2-month period’ refers to the 2-month period consisting of the months of January and February, March and April, May and June, July and August, September and October, or No- vember and December, respectively.’’ Pars. (5), (6). Pub. L. 115–334, § 1401(k)(2)(A), added pars. (5) and (6) and struck out former pars. (5) and (6) which defined the terms ‘‘margin protection program’’ and ‘‘margin protection program payment’’, respec- tively. Pub. L. 115–123, § 60101(b)(1)(A)(ii), redesignated pars. (6) and (7) as (5) and (6), respectively. Former par. (5) re- designated (4). Pars. (7), (8). Pub. L. 115–334, § 1401(k)(2)(B), sub- stituted ‘‘dairy margin coverage’’ for ‘‘the margin pro- tection program’’. Pub. L. 115–123, § 60101(b)(1)(A)(ii), redesignated pars. (8) and (9) as (7) and (8), respectively. Former par. (7) re- designated (6). Pars. (9) to (11). Pub. L. 115–123, § 60101(b)(1)(A)(ii), re- designated pars. (10) and (11) as (9) and (10), respec- tively. Former par. (9) redesignated (8). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Pub. L. 115–334, title I, § 1401(m), Dec. 20, 2018, 132

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