Sec. 1412. Participation of dairy operations in production margin protection program
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All dairy operations in the United States shall be eligible to participate in the production margin protection program, except that a participating dairy operation shall be required to register with the Secretary before the participating dairy operation may receive— basic production margin protection program payments under section 1414; and if the participating dairy operation purchases supplemental production margin protection under section 1415, supplemental production margin protection program payments under such section.
The Secretary shall specify the manner and form by which a participating dairy operation may register to participate in the production margin protection program. 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— registration to receive basic production margin protection and election to purchase supplemental production margin protection; payment of the participation fee under subsection
(d)and producer premiums under section 1415; and participation in the stabilization program under subtitle B. If a dairy producer operates 2 or more dairy operations, each dairy operation of the producer shall separately register to receive basic production margin protection and purchase supplemental production margin protection and only those dairy operations so registered shall be covered by the stabilization program. During the 15-month period beginning on the date of the initiation of the registration period for the production margin protection program, a dairy operation that is actively engaged as of such date may register with the Secretary— to receive basic production margin protection; and if the dairy operation elects, to purchase supplemental production margin protection. A dairy producer that has no existing interest in a dairy operation as of the date of the initiation of the registration period for the production margin protection program, but that, after such date, establishes a new dairy operation, may register with the Secretary during the 1-year period beginning on the date on which the dairy operation first markets milk commercially— to receive basic production margin protection; and if the dairy operation elects, to purchase supplemental production margin protection. In this subsection, the term transition period means the period during which the milk income loss program established under section 1506 of the Food, Conservation, and Energy Act of 2008 ( 7 U.S.C. 8773 ) and the production margin protection program under this subtitle are both in existence. Not later than 30 days after the date of enactment of this Act, the Secretary shall publish a notice in the Federal Register to inform dairy operations of the availability of basic production margin protection and supplemental production margin protection, including the terms of the protection and information about the option of dairy operations during the transition period to make an election described in paragraph (3). Except as provided in paragraph (4), a dairy operation may elect to participate in either the milk income loss program established under section 1506 of the Food, Conservation, and Energy Act of 2008 ( 7 U.S.C. 8773 ) or the production margin protection program under this subtitle for the duration of the transition period. A dairy operation that elects to participate in the milk income loss program established under section 1506 of the Food, Conservation, and Energy Act of 2008 ( 7 U.S.C. 8773 ) during the transition period may, at any time, make a permanent transfer to the production margin protection program. Except as provided in paragraph (5), a participating dairy operation shall— pay an administration fee under this subsection to register to participate in the production margin protection program; and pay the administration fee annually thereafter to continue to participate in the production margin protection program. The administration fee for a participating dairy operation for a calendar year shall be based on the pounds of milk (in millions) marketed by the participating dairy operation in the previous calendar year, as follows: Pounds Marketed (in millions) Administration Fee less than 1 $100 1 to 5 $250 more than 5 to 10 $350 more than 10 to 40 $1,000 more than 40 $2,500. All administration fees collected under this subsection shall be credited to the fund or account used to cover the costs incurred to administer the production 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 administration fees collected under this subsection— to cover administrative costs of the production margin protection program and stabilization program; and to cover costs of the Department of Agriculture relating to reporting of dairy market news, carrying out the amendments made by section 1476, and carrying out section 273 of the Agricultural Marketing Act of 1946 ( 7 U.S.C. 1637b ), to the extent funds remain available after operation of subparagraph (A). The Secretary shall waive or reduce the administration fee required under paragraph
(1)in the case of a limited-resource dairy operation, as defined by the Secretary. A dairy operation may only participate in the production 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.
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Sec. 1412
Participation of dairy operations in production margin protection program
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