Sec. 1413. Production history of participating dairy operations
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For purposes of providing basic production margin protection, the Secretary shall determine the basic production history of a participating dairy operation. Except as provided in paragraph (3), the basic production history of a participating dairy operation for basic production margin protection is equal to the highest annual milk marketings of the participating dairy operation during any 1 of the 3 calendar years immediately preceding the calendar year in which the participating dairy operation first signed up to participate in the production margin protection program.
In the case of a participating dairy operation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the basic production history of the participating dairy operation: The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount. An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary.
Once the basic production history of a participating dairy operation is determined under paragraph
(2)or (3), the basic production history shall not be subsequently changed for purposes of determining the amount of any basic production margin protection payments for the participating dairy operation made under section 1414. For purposes of providing supplemental production margin protection for a participating dairy operation that purchases supplemental production margin protection for a year under section 1415, the Secretary shall determine the annual production history of the participating dairy operation under paragraph (2). The annual production history of a participating dairy operation for a year is equal to the actual milk marketings of the participating dairy operation during the preceding calendar year. Subsection (a)(3) shall apply with respect to determining the annual production history of a participating dairy operation that has been in operation for less than a year. A participating dairy operation shall provide all information that the Secretary may require in order to establish— the basic production history of the participating dairy operation under subsection (a); and the production history of the participating dairy operation whenever the participating dairy operation purchases supplemental production margin protection under section 1415. In promulgating the rules to initiate the production margin protection program, the Secretary shall specify the conditions under which and the manner by which the production history of a participating dairy operation may be transferred by sale or lease. A purchaser or lessee to whom the Secretary transfers a basic production history under this subsection shall not obtain a different level of basic production margin protection than the basic production margin protection coverage held by the seller or lessor from whom the transfer was obtained. A purchaser or lessee to whom the Secretary transfers an annual production history under this subsection shall not obtain a different level of supplemental production margin protection coverage than the supplemental production margin protection coverage in effect for the seller or lessor from whom the transfer was obtained for the calendar year in which the transfer was made. Subject to paragraph (2), if a participating dairy operation moves from 1 location to another location, the participating dairy operation may transfer the basic production history and annual production history associated with the participating dairy operation. A participating dairy operation shall notify the Secretary of any move of a participating dairy operation under paragraph (1). A party subsequently occupying a participating dairy operation location vacated as described in paragraph
(1)shall have no interest in the basic production history or annual production history previously associated with the participating dairy operation at such location.