Sec. 1412. Participation of dairy producers in margin protection program
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All dairy producers in the United States are eligible to participate in the margin protection program, except that a dairy producer must sign up with the Secretary before the producer may receive— basic margin protection payments under section 1414; and if the dairy producer purchases supplemental margin protection under section 1415, supplemental margin protection payments under such section. The Secretary shall allow all interested dairy producers to sign up to participate in the margin protection program.
The Secretary shall specify the manner and form by which a dairy producer must sign up to participate in the margin protection program. If a dairy operation consists of more than one dairy producer, all of the dairy producers of the operation shall be treated as a single dairy producer for purposes of— registration to receive basic margin protection and purchase supplemental margin protection; payment of the administrative fee under subsection
(e)and producer premiums under section 1415; and participation in the stabilization program under subpart B. If a dairy producer operates two or more dairy operations, each dairy operation of the producer shall require a separate registration to receive basic margin protection and purchase supplemental margin protection. Only those dairy operations so registered shall be subject to the stabilization program. During the one-year period beginning on the date of the initiation of the sign-up period for the margin protection program, a dairy producer that is actively engaged in a dairy operation as of such date may sign up with the Secretary— to receive basic margin protection; and if the producer elects, to purchase supplemental margin protection. A dairy producer that has no existing interest in a dairy operation as of the date of the initiation of the sign-up period for the margin protection program, but that, after such date, establishes a new dairy operation, may sign up with the Secretary during the one year period beginning on the date on which the dairy operation first markets milk commercially— to receive basic margin protection; and if the producer elects, to purchase supplemental margin protection. Not later than 30 days after the effective date of this subtitle, the Secretary shall publish a notice in the Federal Register to inform dairy producers of the availability of retroactive basic margin protection and retroactive supplemental margin protection, subject to the condition that interested producers must file a notice of intent (in such form and manner as the Secretary specifies in the Federal Register notice)— to participate in the margin protection program and receive basic margin protection; and at the election of the producer under paragraph (3), to also obtain supplemental margin protection. If a dairy producer files a notice of intent under paragraph
(1)to participate in the margin protection program before the initiation of the sign-up period for the margin protection program and subsequently signs up for the margin protection program, the producer shall receive basic margin protection retroactive to the effective date of this subtitle. Retroactive basic margin protection under this paragraph for a dairy producer shall apply from the effective date of this subtitle until the date on which the producer signs up for the margin protection program. Subject to subparagraphs
(B)and (C), if a dairy producer files a notice of intent under paragraph
(1)to participate in the margin protection program and obtain supplemental margin protection and subsequently signs up for the margin protection program, the producer shall receive supplemental margin protection, in addition to the basic margin protection under paragraph (2), retroactive to the effective date of this subtitle. A notice of intent to obtain retroactive supplemental margin protection must be filed with the Secretary no later than the earlier of the following: 150 days after the date on which the Secretary publishes the notice in the Federal Register required by paragraph (1). The date on which the Secretary initiates the sign up period for the margin protection program. To be sufficient to obtain retroactive supplemental margin protection, the notice of intent to participate filed by a dairy producer must specify— a selected coverage level that is higher, in any increment of $0.50, than the payment threshold for basic margin protection specified in section 1414(b), but not to exceed $6.00; and the percentage of coverage, subject to limits imposed in section 1415(c). The coverage level and percentage specified in the notice of intent to participate filed by a dairy producer shall apply from the effective date of this subtitle until the later of the following: October 1, 2013. The date on which the Secretary initiates the sign-up period for the margin protection program. In no way does filing a notice of intent under this subsection obligate a dairy producer to sign up for the margin protection program once the program rules are final, but if a producer does file a notice of intent and subsequently signs up for the margin protection program, that dairy producer is obligated to pay fees and premiums for any retroactive basic margin protection or retroactive supplemental margin protection selected in the notice of intent. A dairy producer shall pay an administrative fee under this subsection to sign up to participate in the margin protection program. The participating dairy producer shall pay the administrative fee annually thereafter to continue to participate in the margin protection program. The administrative fee for a participating dairy producer for a calendar year is based on the pounds of milk (in millions) marketed by the dairy producer in the previous calendar year, as follows: Pounds Marketed (in millions) Admin. Fee less than 1 $100 1 to 10 $250 more than 10 to 40 $500 more than 40 $1000 All administrative fees collected under this subsection shall be credited to the fund or account used to cover the costs incurred to administer the margin protection program and the stabilization program and shall be available to the Secretary, without further appropriation and until expended, for use or transfer as provided in paragraph (4). The Secretary shall use administrative fees collected under this subsection— to cover administrative costs of the margin protection program and stabilization program; and to the extent funds remain available after operation of subparagraphs (A), to cover costs of the Department of Agriculture relating to reporting of dairy market news and to carry out section 273 of the Agricultural Marketing Act of 1946 ( 7 U.S.C. 1637b ). The Secretary shall prohibit a dairy producer from reconstituting a dairy operation for the sole purpose of the dairy producer— receiving basic margin protection; purchasing supplemental margin protection; or avoiding participation in the stabilization program. A dairy operation that participates in the margin protection program shall be eligible to participate in the livestock gross margin for dairy program under the Federal Crop Insurance Act ( 7 U.S.C. 1501 et seq. ) only after operations that are not participating in the production margin protection program are enrolled.
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