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7 U.S.C. § 9058 — Premiums for dairy margin coverage

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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Stable record: federal_law:legal_authorities:record_usc_cc98953effacf2d2b11e9e4e
Source file: Laws/federal/codes/united-states-code/title-7/section-9058-premiums-for-dairy-margin-coverage--9c1ce03b78.md
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Passage SHA-256: ab8873b254629f151c5fd67cecaf4087a746e88251b287184e852b652698d987

Source location: Title 7, Chapter 115, § 9058; chapter-115-agricultural-commodity-policy-and-programs.md

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**(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 payment of premium** The Secretary shall provide more than 1 method by which a participating dairy operation may pay the premium required under this section in any manner that maximizes participating dairy operation payment flexibility and dairy margin coverage integrity. **(e) Premium obligations** (1) **Pro-ration of premium for new participants** — In the case of a participating dairy operation that first registers to participate in dairy margin coverage for a calendar year after the start of the calendar year, the participating dairy operation shall pay a pro-rated premium for that calendar year based on the portion of the calendar year for which the participating dairy operation purchases the coverage. (2) **Legal obligation** — A participating dairy operation in dairy margin coverage for a calendar year shall be legally obligated to pay the applicable premium for that calendar year, except that the Secretary may waive that obligation, under terms and conditions determined by the Secretary, for any participating dairy operation in the case of death, retirement, permanent dissolution of a participating dairy operation, or other circumstances as the Secretary considers appropriate to ensure the integrity of dairy margin coverage. **(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section9056&num=0&edition=prelim) 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** — Paragraph (1) shall only apply to a calendar year during the period of calendar years 2014 through 2017 for which the amount described in subparagraph (A) of that paragraph is greater than the amount described in subparagraph (B) of that paragraph. **(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** — For each of calendar years 2026 through 2031, for a participating dairy operation that makes a 1-time election of coverage level in a tier and of a percentage of coverage under [section 9056(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section9056/a&num=0&edition=prelim) for the 5-year period beginning in January 2026. (2) **New dairy operations** — For each applicable calendar year through 2031, for a participating dairy operation that— (A) establishes a production history pursuant to [section 9055(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section9055/b&num=0&edition=prelim); 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section9056/a&num=0&edition=prelim) for the period beginning with the first available calendar year and ending in December 2031. (3) **Full participation required** — Notwithstanding the annual elections under [section 9056(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section9056/a&num=0&edition=prelim)— (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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section9058&num=0&edition=prelim) shall be subject to that section.

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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. § 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. § 9058 — Effect of failure to pay administrative fees

Page 2289 TITLE 7—AGRICULTURE § 9058 through 2017 for which the amount described in subparagraph (A) of that paragraph is great- er than the amount described in subparagraph (B) of that paragraph. (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 For each of calendar years 2019 through 2023, for a participating dairy operation that 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 5-year period begin- ning in January 2019. (2) New dairy operations For each applicable calendar year through 2023, for a participating dairy operation that— (A) establishes a production history pursu- ant 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 cov- erage 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 sub- section shall remain in effect for the full du- ration applicable to a participating dairy op- eration in accordance with paragraph (1) or (2)(B), as applicable; and (B) a participating dairy operation that makes a 1-time enrollment under this sub- section and is noncompliant under section 9058 of this title shall be subject to that sec- tion. (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.

Source: Supplied 2024 U.S. Code historical extraction · 7 U.S.C. § 9058

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