7 U.S.C. § 9054 — Participation of dairy operations in dairy

Page 2284 TITLE 7—AGRICULTURE § 9054 Editorial Notes REFERENCES IN TEXT This Act, referred to in subsec. (b), is Pub. L. 113–79, Feb. 7, 2014, 128 Stat. 649, known as the Agricultural Act of 2014. For complete classification of this Act to the Code, see Short Title note set out under section 9001 of this title and Tables. AMENDMENTS 2018—Pub. L. 115–334, § 1401(k)(4)(B)–(D), designated existing provisions as subsec. (a), inserted heading, sub- stituted ‘‘The Secretary shall continue to administer a dairy margin coverage program’’ for ‘‘Not later than September 1, 2014, the Secretary shall establish and ad- minister a margin protection program’’, substituted ‘‘dairy margin coverage payment’’ for ‘‘margin protec- tion payment’’ in two places, and added subsec. (b). Pub. L. 115–334, § 1401(k)(4)(A), substituted ‘‘Dairy margin coverage’’ for ‘‘Establishment of margin protec- tion program for dairy producers’’ in section catchline. 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. § 9054. 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 cov- erage to receive dairy margin coverage pay- ments. (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 oper- ation shall register for the calendar year. (2) Extension of election period for 2018 cal- endar year (A) In general The Secretary shall extend the election pe- riod for the 2018 calendar year by not less than 90 days after February 9, 2018, or such additional period as the Secretary deter- mines is necessary for dairy operations to make new elections to participate for that calendar year, including dairy operations that elected to so participate before Feb- ruary 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 ineli- gible 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 De- cember 20, 2018, and the Secretary deter- mines 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 et seq.) before February 9, 2018. (3) Election period for 2019 calendar year For the 2019 calendar year, the Secretary shall— (A) open the election period not later than 60 days after the effective date described in section 1401(m) of the Agriculture Improve- ment Act of 2018; and (B) hold that election period open for not less than 90 days. (4) Treatment of multiproducer dairy oper- ation (A) In general If a participating dairy operation is oper- ated by more than 1 dairy producer, the dairy producers of the dairy operation who elect to participate shall be treated as a sin- gle dairy operation for purposes of partici- pating in dairy margin coverage. (B) Rule of construction Subparagraph (A) shall not be construed to allow a producer to adjust the proportion of their share covered under tier I or tier II premiums from the proportion covered for the operation. (5) Treatment of producers with multiple dairy operations If a dairy producer operates 2 or more dairy operations, each dairy operation of the pro- ducer shall separately register to participate in dairy margin coverage. (c) Annual administrative fee (1) Administrative fee required Each participating dairy operation shall— (A) pay an administrative fee to register to participate in dairy margin coverage; and (B) pay the administrative fee annually through the duration of dairy margin cov- erage specified in section 9059 of this title. (2) Amount of fee The administrative fee for a participating dairy operation shall be $100. (3) Use of fees The Secretary shall use administrative fees collected under this subsection to cover ad- ministrative costs incurred to carry out dairy margin coverage. (4) Exemption A limited resource, beginning, veteran, or socially disadvantaged farmer, as defined by the Secretary, shall be exempt from the ad- ministrative fee under this subsection. (Pub. L. 113–79, title I, § 1404, Feb. 7, 2014, 128 Stat. 690; Pub. L. 115–123, div. F, § 60101(b)(2), Feb. 9, 2018, 132 Stat. 311; Pub. L. 115–334, title I, § 1401(d), (e), (k)(5), Dec. 20, 2018, 132 Stat. 4512, 4517.) Editorial Notes REFERENCES IN TEXT The Federal Crop Insurance Act, referred to in sub- sec. (b)(2)(B), is subtitle A of title V of act Feb. 16, 1938, 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-