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Code · BILL · 113th Congress · H.R. 2642 (Enrolled) — To provide for the reform and continuation of agricultural and other programs of the Department of Agriculture throug... · Sec. 1406

Sec. 1406. Margin protection payments

173 words·~1 min read·/bill/113/hr/2642/enr/section-1406·

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For purposes of receiving margin protection payments for a consecutive 2-month period, a participating dairy operation shall annually elect— a coverage level threshold that is equal to $4.00, $4.50, $5.00, $5.50, $6.00, $6.50, $7.00, $7.50, or $8.00; and a percentage of coverage, in 5-percent increments, beginning with 25 percent and not exceeding 90 percent of the production history of the participating dairy operation. A participating dairy operation shall receive a margin protection payment whenever the average actual dairy production margin for a consecutive 2-month period is less than the coverage level threshold selected by the participating dairy operation.
The margin protection payment for the participating dairy operation shall be determined as follows: The Secretary shall calculate the amount by which the coverage level threshold selected by the participating dairy operation exceeds the average actual dairy production margin for the consecutive 2-month period. The amount determined under paragraph
(1)shall be multiplied by— the coverage percentage selected by the participating dairy operation; and the production history of the participating dairy operation divided by 6.
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