PRIA, Government Policy, Made Personal

Summary

All dairy operations in the United States can take part in dairy margin coverage and get payments. The Secretary of Agriculture will set how to sign up and will pick a yearly registration date. For 2018, the Secretary must extend the signup period by at least 90 days after February 9, 2018, or longer if needed, and that extension must include operations that had already signed up before February 9, 2018. If an operation was ruled ineligible under the old rules the day before December 20, 2018, the Secretary must open a new signup window that ends at least 90 days after December 20, 2018, or later if needed; this also covers operations that used the livestock gross margin for dairy program before February 9, 2018. For 2019, the Secretary must open signups no later than 60 days after the effective date named in section 1401(m) of the Agriculture Improvement Act of 2018 and keep the window open at least 90 days. If more than one producer runs the same dairy operation and they enroll, they count as one operation for the program, but an individual producer cannot change their covered share for tier I or II premiums from the operation’s share. If a producer runs two or more separate dairy operations, each one must register on its own. Each participating operation must pay a $100 fee to register and pay it each year for the program’s length under section 9059; the fees pay administrative costs. Farmers who are limited resource, beginning, veteran, or socially disadvantaged, as the Secretary defines those terms, are exempt from the fee.

Title 7, §9054

Agriculture, Source: USLM XML via OLRC

(a)Eligibility

All dairy operations in the United States shall be eligible to participate in dairy margin coverage to receive dairy margin coverage payments.

(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 operation shall register for the calendar year.

(2)Extension of election period for 2018 calendar year

(A)In general

The Secretary shall extend the election period for the 2018 calendar year by not less than 90 days after February 9, 2018, or such additional period as the Secretary determines is necessary for dairy operations to make new elections to participate for that calendar year, including dairy operations that elected to so participate before February 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 ineligible 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 December 20, 2018, and the Secretary determines 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 Improvement Act of 2018; and

(B)hold that election period open for not less than 90 days.

(4)Treatment of multiproducer dairy operation

(A)In general

If a participating dairy operation is operated by more than 1 dairy producer, the dairy producers of the dairy operation who elect to participate shall be treated as a single dairy operation for purposes of participating 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 producer 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 coverage 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 administrative 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 administrative fee under this subsection.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Crop Insurance Act, referred to in subsec. (b)(2)(B), is subtitle A of title V of act Feb. 16, 1938, ch. 30, 52 Stat. 72, which is classified generally to subchapter I (§ 1501 et seq.) of chapter 36 of this title. For complete classification of this Act to the Code, see section 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 section 9051 of this title.

Amendments

2018—Pub. L. 115–334, § 1401(k)(5)(A), substituted “dairy margin coverage” for “margin protection program” in section catchline. Subsec. (a). Pub. L. 115–334, § 1401(k)(5)(B), substituted “eligible to participate in dairy margin coverage to receive dairy margin coverage payments” for “eligible to participate in the margin protection program to receive margin protection payments”. Subsec. (b)(1). Pub. L. 115–334, § 1401(k)(5)(C), substituted “dairy margin coverage” for “the margin protection 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), substituted “dairy margin coverage” for “the margin protection 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), substituted “dairy margin coverage” for “the margin protection 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 AmendmentAmendment 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.

§9054 Participation of Dairy Operations in Dairy Margin Coverage