Sec. 1406. DAIRY MARGIN COVERAGE PAYMENTS
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## SEC. 1406 DAIRY MARGIN COVERAGE PAYMENTS **[**[7 U.S.C. 9056](/us/usc/t7/s9056)**]** ###
(a)Coverage Level Threshold and Coverage Percentage ####
(1)Coverage level threshold #####
(A)In general For purposes of receiving dairy margin coverage payments for a month, 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, $8.00, $8.50, $9.00, or $9.50. #####
(B)Applicability Except as provided in subparagraph (C), the coverage level threshold elected under subparagraph
(A)shall apply to the covered production elected by the participating dairy operation under paragraph (2). #####
(C)Second coverage election for tier ii In the case of a participating dairy operation that elects a coverage level threshold of $8.50, $9.00, or $9.50 under subparagraph (A)— ######
(i)that coverage level threshold shall apply to the first 6,000,000 pounds of milk marketings included in the covered production elected by the participating dairy operation; and ######
(ii)the participating dairy operation shall 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 to apply to milk marketings in excess of 6,000,000 pounds included in the covered production elected by the participating dairy operation. ####
(2)Coverage percentage For purposes of receiving dairy margin coverage payments for a month, a participating dairy operation shall annually elect a percentage of coverage, in 5-percent increments, not exceeding 95 percent of the production history of the participating dairy operation. ###
(b)Payment Threshold A participating dairy operation shall receive a dairy margin coverage payment whenever the average actual dairy production margin for a month is less than the coverage level threshold selected by the participating dairy operation. ###
(c)Amount of Payment The dairy margin coverage payment for the participating dairy operation shall be determined as follows: ####
(1)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 month. ####
(2)The amount determined under paragraph
(1)shall be multiplied by— #####
(A)the coverage percentage selected by the participating dairy operation; and #####
(B)the production history of the participating dairy operation divided by 12.
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Sec. 1406
DAIRY MARGIN COVERAGE PAYMENTS
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