Title 7 › CHAPTER 115 — AGRICULTURAL COMMODITY POLICY AND PROGRAMS › SUBCHAPTER III — DAIRY › Part A — Dairy Margin Coverage › § 9057
A dairy operation that joins the dairy margin coverage program must pay an annual premium. The premium is the coverage percentage the operation picks multiplied by its production history and by a set premium per hundredweight of milk. For the first 6,000,000 pounds, the per‑hundredweight charges are: $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. For milk over 6,000,000 pounds, the per‑hundredweight charges are: $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. The Secretary will offer more than one way to pay so producers have flexibility. If a dairy joins after the year starts, its premium is prorated for that year. A participating dairy must pay the premium for the year, but the Secretary may waive the obligation in cases like death, retirement, or permanent closure, or for other appropriate reasons. Dairies that were in the prior margin protection program in any year 2014–2017 can apply for a repayment equal to premiums paid minus payments received for those years. Eligible dairies may take 75 percent of that amount as a credit for future premiums or 50 percent as a cash payment, and this only applies for 2014–2017 years where premiums paid exceeded payments. A 25 percent reduction in the per‑hundredweight premium applies for calendar years 2026 through 2031 for dairies that make a one‑time election covering a five‑year period starting January 2026, and for new dairies that establish a production history and make a one‑time election through December 2031. One‑time elections must remain in effect for the full period and noncompliance is subject to the program’s rules.
Full Legal Text
Agriculture, Source: USLM XML via OLRC
Legislative History
Reference
Citation
7 U.S.C. § 9057
Title 7, Agriculture
Last Updated
Sep 23, 2026
Release point: 119-110