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7 U.S.C. § 9051 — Definitions
Federal law — U.S. Code and appendices · legal_authorities
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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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 COVERAGE
Editorial Notes
CODIFICATION
Pub. L. 115–334, title I, § 1401(k)(1), Dec. 20, 2018, 132
Stat. 4516, substituted ‘‘Dairy Margin Coverage’’ for
‘‘Margin Protection Program for Dairy Producers’’ in
part heading.
§ 9051. 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.
(2) All-milk price
The term ‘‘all-milk price’’ means the aver-
age price received, per hundredweight of milk,
by dairy operations for all milk sold to plants
and dealers in the United States, as deter-
mined by the Secretary.
(3) Average feed cost
The term ‘‘average feed cost’’ means the av-
erage 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 multi-
plying 1.0728 by the price of corn per bushel.
(B) The product determined by multi-
plying 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 de-
termined 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
definition of dairy operation.
(5) Dairy margin coverage
The term ‘‘dairy margin coverage’’ means
the dairy margin coverage program required
by section 9053 of this title.
(6) Dairy margin coverage payment
The term ‘‘dairy margin coverage payment’’
means a payment made to a participating
dairy operation under dairy margin coverage
pursuant to section 9056 of this title.
(7) Participating dairy operation
The term ‘‘participating dairy operation’’
means a dairy operation that registers under
section 9054 of this title to participate in dairy
margin coverage.
(8) Production history
The term ‘‘production history’’ means the
production history determined for a partici-
pating dairy operation under subsection (a) or
(b) of section 9055 of this title when the par-
ticipating dairy operation first registers to
participate in dairy margin coverage.
(9) Secretary
The term ‘‘Secretary’’ means the Secretary
of Agriculture.
(10) United States
The term ‘‘United States’’, in a geographical
sense, means the 50 States, the District of Co-
lumbia, American Samoa, Guam, the Com-
monwealth of the Northern Mariana Islands,
the Commonwealth of Puerto Rico, the Virgin
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
Stat. 4518, provided that: ‘‘The amendments made by
this section [amending this section and sections 9052 to
9060 of this title] shall take effect on January 1, 2019.’’
Pub. L. 115–123, div. F, § 60101(b)(5), Feb. 9, 2018, 132
Stat. 312, provided that: ‘‘The amendments made by
this subsection [amending this section and sections 9052
and 9054 to 9057 of this title] shall apply beginning with
the 2018 calendar year.’’
§ 9052. Calculation of average feed cost and ac-
tual dairy production margins
(a) Calculation of average feed cost
The Secretary shall calculate the national av-
erage feed cost for each month using the fol-
lowing 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 mar-
gin
(1) In general
For use in dairy margin coverage, the Sec-
retary shall calculate the actual dairy produc-
tion 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.
(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.)
Editorial Notes
AMENDMENTS
2018—Subsec. (b)(1). Pub. L. 115–334 substituted ‘‘dairy
margin coverage’’ for ‘‘the margin protection program’’
in introductory provisions.
Pub. L. 115–123 substituted ‘‘month’’ for ‘‘consecutive
2-month period’’ wherever appearing.
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.
COLLECTION OF ALFALFA HAY DATA
Pub. L. 115–334, title I, § 1401(c), Dec. 20, 2018, 132 Stat.
4512, provided that: ‘‘Not later than 120 days after the
date of the enactment of this Act [Dec. 20, 2018], the
Secretary [of Agriculture], acting through the National
Agricultural Statistics Service, shall revise monthly
price survey reports to include prices for high-quality
alfalfa hay in the top five milk producing States, as
measured by volume of milk produced during the pre-
vious month.’’
§ 9053. Dairy margin coverage
(a) In general
The Secretary shall continue to administer a
dairy margin coverage program for dairy pro-
ducers under which participating dairy oper-
ations are paid a dairy margin coverage pay-
ment 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 Fed-
eral 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 in-
consistent with any provision of this Act.
(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.)
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Federal law — U.S. Code and appendices · legal_authorities
**(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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