7 U.S.C. § 9057 — Premiums for dairy margin coverage

Page 2288 TITLE 7—AGRICULTURE § 9057 § 9057. 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 ob- tained by multiplying— (1) the coverage percentage elected by the participating dairy operation under section 9056(a)(2) of this title; (2) the production history of the partici- pating 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 5,000,000 pounds of production (1) In general For the first 5,000,000 pounds of milk mar- ketings 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 fol- lowing annual premiums apply: Coverage Level Premium per Cwt. $4.00 None $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 pro- duction in excess of 5,000,000 pounds (1) In general For milk marketings in excess of 5,000,000 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 fol- lowing annual premiums apply: Coverage Level Premium per Cwt. $4.00 None $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 meth- od 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 oper- ation that first registers to participate in dairy margin coverage for a calendar year after the start of the calendar year, the par- ticipating 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 pre- mium for that calendar year, except that the Secretary may waive that obligation, under terms and conditions determined by the Sec- retary, for any participating dairy operation in the case of death, retirement, permanent dissolution of a participating dairy operation, or other circumstances as the Secretary con- siders 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 sec- tion 9056 of this title for that calendar year. (2) Eligibility A dairy operation that is eligible to receive a repayment under paragraph (1) is a dairy op- eration 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 applica- tion 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 oper- ation 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 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. 20, 2018, 132 Stat. 4514, 4515, 4517.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–334, § 1401(k)(8)(A), substituted ‘‘dairy margin coverage’’ for ‘‘margin protection pro- gram’’ in section catchline. Subsec. (a). Pub. L. 115–334, § 1401(k)(8)(B), substituted ‘‘dairy margin coverage’’ for ‘‘the margin protection program’’ in introductory provisions. Subsec. (b). Pub. L. 115–123, § 60101(b)(4)(A)(i), sub- stituted ‘‘Tier I: premium per hundredweight for first 5,000,000 pounds of production’’ for ‘‘Premium per hun- dredweight for first 4 million pounds of production’’ in heading. Subsec. (b)(1). Pub. L. 115–123, § 60101(b)(4)(A)(ii), sub- stituted ‘‘5,000,000’’ for ‘‘4,000,000’’. Subsec. (b)(2). Pub. L. 115–334, § 1401(h)(1), added par. (2) and struck out former par. (2) which set forth table of annual premiums, applicable except as provided in par. (3). Pub. L. 115–123, § 60101(b)(4)(A)(iii), in Premium per Cwt. column of table, substituted ‘‘None’’ for ‘‘$0.010’’, ‘‘None’’ for ‘‘$0.025’’, ‘‘$0.009’’ for ‘‘$0.040’’, ‘‘$0.016’’ for ‘‘$0.055’’, ‘‘$0.040’’ for ‘‘$0.090’’, ‘‘$0.063’’ for ‘‘$0.217’’, ‘‘$0.087’’ for ‘‘$0.300’’, and ‘‘$0.142’’ for ‘‘$0.475’’. Subsec. (b)(3). Pub. L. 115–334, § 1401(h)(1), struck out par. (3). Text read as follows: ‘‘The premium per hun- dredweight specified in the table contained in para- graph (2) for each coverage level (except the $8.00 cov- erage level) shall be reduced by 25 percent for each of calendar years 2014 and 2015.’’ Subsec. (c). Pub. L. 115–123, § 60101(b)(4)(B)(i), sub- stituted ‘‘Tier II: premium per hundredweight for pro- duction in excess of 5,000,000 pounds’’ for ‘‘Premium per hundredweight for production in excess of 4 million pounds’’ in heading. Subsec. (c)(1). Pub. L. 115–123, § 60101(b)(4)(B)(ii), sub- stituted ‘‘5,000,000’’ for ‘‘4,000,000’’. Subsec. (c)(2). Pub. L. 115–334, § 1401(h)(2), added par. (2) and struck out former par. (2) which set forth table of annual producer premiums. Subsec. (d). Pub. L. 115–334, § 1401(k)(8)(C), substituted ‘‘dairy margin coverage integrity’’ for ‘‘program integ- rity’’. Subsec. (e). Pub. L. 115–334, § 1401(k)(8)(D)(i), sub- stituted ‘‘in dairy margin coverage’’ for ‘‘in the margin protection program’’ in two places. Subsec. (e)(2). Pub. L. 115–334, § 1401(k)(8)(D)(ii), sub- stituted ‘‘integrity of dairy margin coverage’’ for ‘‘in- tegrity of the program’’. Subsec. (f). Pub. L. 115–334, § 1401(i), added subsec. (f). Subsec. (g). Pub. L. 115–334, § 1401(j), added subsec. (g). 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. AVAILABILITY OF PREMIUM DISCOUNT Pub. L. 118–158, div. D, § 4101(c)(4)(A)(ii), Dec. 21, 2024, 138 Stat. 1768, provided that: ‘‘With respect to coverage for calendar year 2025, section 1407(g) of the Agricul- tural Act of 2014 (7 U.S.C. 9057(g)) shall only apply to a participating dairy operation with respect to which the premium was reduced in accordance with that section (as applied to such participating dairy operation pursu- ant to section 102(c)(2)(B)(ii) of division B of the Fur- ther Continuing Appropriations and Other Extensions Act, 2024 (Public Law 118–22) [137 Stat. 115]) for calendar year 2024.’’ Pub. L. 118–22, div. B, title I, § 102(c)(2)(B)(ii), Nov. 17, 2023, 137 Stat. 115, provided that: ‘‘With respect to cov- erage for calendar year 2024, section 1407(g) of the Agri- cultural Act of 2014 (7 U.S.C. 9057(g)) shall only apply to a participating dairy operation with respect to which the premium was reduced in accordance with that sec- tion for calendar year 2023.’’ § 9058. Effect of failure to pay administrative fees or premiums (a) Loss of benefits A participating dairy operation that fails to pay the required annual administrative fee under section 9054 of this title or is in arrears on premium payments under section 9057 of this title— (1) remains legally obligated to pay the ad- ministrative fee or premiums, as the case may be; and (2) may not receive dairy margin coverage payments until the fees or premiums are fully paid. (b) Enforcement The Secretary may take such action as nec- essary to collect administrative fees and pre-