7 U.S.C. § 9055 — Production history of participating dairy

Page 2285 TITLE 7—AGRICULTURE § 9055 ch. 30, 52 Stat. 72, which is classified generally to sub- chapter I (§ 1501 et seq.) of chapter 36 of this title. For complete classification of this Act to the Code, see sec- tion 1501 of this title and Tables. Section 1401(m) of the Agriculture Improvement Act of 2018, referred to in subsec. (b)(3)(A), is section 1401(m) of Pub. L. 115–334, which is set out as a note under sec- tion 9051 of this title. AMENDMENTS 2018—Pub. L. 115–334, § 1401(k)(5)(A), substituted ‘‘dairy margin coverage’’ for ‘‘margin protection pro- gram’’ in section catchline. Subsec. (a). Pub. L. 115–334, § 1401(k)(5)(B), substituted ‘‘eligible to participate in dairy margin coverage to re- ceive dairy margin coverage payments’’ for ‘‘eligible to participate in the margin protection program to re- ceive margin protection payments’’. Subsec. (b)(1). Pub. L. 115–334, § 1401(k)(5)(C), sub- stituted ‘‘dairy margin coverage’’ for ‘‘the margin pro- tection program’’. Pub. L. 115–123, § 60101(b)(2)(A)(i), inserted ‘‘, including the establishment of a date each calendar year by which a dairy operation shall register for the calendar year’’ before period at end. Subsec. (b)(2). Pub. L. 115–334, § 1401(e)(2), designated existing provisions as subpar. (A), inserted heading, and added subpar. (B). Pub. L. 115–123, § 60101(b)(2)(A)(iii), added par. (2). Former par. (2) redesignated (3). Subsec. (b)(3). Pub. L. 115–334, § 1401(d)(2), added par. (3) and struck out former par. (3). Prior to amendment, text read as follows: ‘‘If a participating dairy operation is operated by more than 1 dairy producer, all of the dairy producers of the participating dairy operation shall be treated as a single dairy operation for purposes of participating in the margin protection program.’’ Pub. L. 115–123, § 60101(b)(2)(A)(ii), redesignated par. (2) as (3). Former par. (3) redesignated (4). Subsec. (b)(4). Pub. L. 115–334, § 1401(d)(2), added par. (4). Former par. (4) redesignated (5). Pub. L. 115–123, § 60101(b)(2)(A)(ii), redesignated par. (3) as (4). Subsec. (b)(5). Pub. L. 115–334, § 1401(k)(5)(C), sub- stituted ‘‘dairy margin coverage’’ for ‘‘the margin pro- tection program’’. Pub. L. 115–334, § 1401(d)(1), redesignated par. (4) as (5). Subsec. (c)(1), (3). Pub. L. 115–334, § 1401(k)(5)(C), sub- stituted ‘‘dairy margin coverage’’ for ‘‘the margin pro- tection program’’ wherever appearing. Subsec. (c)(4). Pub. L. 115–123, § 60101(b)(2)(B), added par. (4). Subsec. (d). Pub. L. 115–334, § 1401(e)(1), struck out subsec. (d). Text read as follows: ‘‘A dairy operation may participate in the margin protection program or the livestock gross margin for dairy program under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), but not both.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title. Amendment by Pub. L. 115–123 applicable beginning with the 2018 calendar year, see section 60101(b)(5) of Pub. L. 115–123, set out as a note under section 9051 of this title. § 9055. Production history of participating dairy operations (a) Production history (1) In general Except as provided in paragraph (4) and sub- section (b), when a dairy operation first reg- isters to participate in dairy margin coverage, the production history of the dairy operation for dairy margin coverage is equal to the high- est annual milk marketings of the partici- pating dairy operation during any one of the 2011, 2012, or 2013 calendar years. (2) Adjustment In the subsequent calendar years ending be- fore January 1, 2019, the Secretary shall adjust the production history of a participating dairy operation determined under paragraph (1) to reflect any increase in the national average milk production. (3) Continued applicability of base production history A production history established for a dairy operation under paragraph (1) shall be the base production history for the dairy operation in subsequent years (as adjusted under paragraph (2), as applicable). (4) Base production history adjustment for par- ticipating dairy operations with produc- tion 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 produc- tion history of the dairy operation for dairy margin coverage shall be equal to— (i) the amount determined under para- graph (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 para- graph (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 oper- ation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Sec- retary to determine the production history of the participating dairy operation: (A) The volume of the actual milk mar- ketings for the months the participating dairy operation has been in operation ex- trapolated to a yearly amount. (B) An estimate of the actual milk mar- ketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national roll- ing herd average data published by the Sec- retary. (2) Dairy operations with 1 year or more of production history In the case of a participating dairy oper- ation that was not in operation prior to Janu- ary 1, 2014, that has not established a produc- tion history, and that has been in operation for equal to or longer than 1 year, the partici- Page 2286 TITLE 7—AGRICULTURE § 9056 pating dairy operation shall elect the annual milk marketings during any 1 calendar year to determine the production history of the par- ticipating dairy operation. (3) Adjustment The Secretary shall adjust the production history of a participating dairy operation de- termined under paragraph (1) or (2) to reflect any increase or decrease in the national aver- age milk production relative to calendar year 2017. (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 op- eration 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). (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.) Editorial Notes AMENDMENTS 2023—Subsec. (a)(1). Pub. L. 118–22, § 102(c)(2)(A)(i), in- serted ‘‘paragraph (4) and’’ before ‘‘subsection (b)’’. Subsec. (a)(4). Pub. L. 118–22, § 102(c)(2)(A)(ii), added par. (4). 2018—Subsec. (a)(1). Pub. L. 115–334, § 1401(k)(6), sub- stituted ‘‘dairy margin coverage’’ for ‘‘the margin pro- tection program’’ in two places. Subsec. (a)(2). Pub. L. 115–334, § 1401(f)(1)(A)(i), sub- stituted ‘‘In the subsequent calendar years ending be- fore January 1, 2019’’ for ‘‘In subsequent years’’. Subsec. (a)(3). Pub. L. 115–334, § 1401(f)(1)(A)(ii), in- serted ‘‘, as applicable’’ after ‘‘paragraph (2)’’. Pub. L. 115–123 added par. (3). Subsec. (b). Pub. L. 115–334, § 1401(f)(1)(B), designated existing provisions as par. (1), inserted heading, redes- ignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1), realigned margins, and added pars. (2) and (3). Subsec. (c). Pub. L. 115–334, § 1401(k)(6), substituted ‘‘dairy margin coverage’’ for ‘‘the margin protection program’’. Subsec. (d). Pub. L. 115–334, § 1401(f)(2), added subsec. (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2023 AMENDMENT Amendment by Pub. L. 118–22 to be applied and ad- ministered as if enacted on Sept. 30, 2023, see section 102(g) of Pub. L. 118–22, set out in an Extension of Agri- cultural Programs note under section 9001 of this title. EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title. Amendment by Pub. L. 115–123 applicable beginning with the 2018 calendar year, see section 60101(b)(5) of Pub. L. 115–123, set out as a note under section 9051 of this title. § 9056. Dairy margin coverage payments (a) Coverage level threshold and coverage per- centage (1) Coverage level threshold (A) In general For purposes of receiving dairy margin coverage payments for a month, a partici- pating 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 oper- ation 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 pro- duction 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 in- cluded in the covered production elected by the participating dairy operation. (2) Coverage percentage For purposes of receiving dairy margin cov- erage payments for a month, a participating dairy operation shall annually elect a percent- age 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 participating dairy operation. (c) Amount of payment The dairy margin coverage payment for the participating dairy operation shall be deter- mined 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 partici- pating 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),