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United States Code (Last Updated: May 24, 2014) |
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Title 7. AGRICULTURE |
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Chapter 115. AGRICULTURAL COMMODITY POLICY AND PROGRAMS |
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SubChapter III. DAIRY |
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Part A. Margin Protection Program for Dairy Producers |
§ 9057. Premiums for margin protection program
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(a) Calculation of premiums For purposes of participating in the margin protection program, a participating dairy operation shall pay an annual premium equal to the product obtained by multiplying— (1) the coverage percentage elected by the participating dairy operation under section 9056(a)(2) of this title; (2) the production history of the participating dairy operation; and (3) the premium per hundredweight of milk imposed by this section for the coverage level selected. (b) Premium per hundredweight for first 4 million pounds of production (1) In general For the first 4,000,000 pounds of milk marketings included in the production history of a participating dairy operation, the premium per hundredweight for each coverage level is specified in the table contained in paragraph (2).
(2) Producer premiums Except as provided in paragraph (3), the following annual premiums apply:
Coverage Level
Premium per Cwt.
$4.00
None
$4.50
$0.010
$5.00
$0.025
$5.50
$0.040
$6.00
$0.055
$6.50
$0.090
$7.00
$0.217
$7.50
$0.300
$8.00
$0.475
(3) Special rule The premium per hundredweight specified in the table contained in paragraph (2) for each coverage level (except the $8.00 coverage level) shall be reduced by 25 percent for each of calendar years 2014 and 2015.
(c) Premium per hundredweight for production in excess of 4 million pounds (1) In general For milk marketings in excess of 4,000,000 pounds included in the production history of a participating dairy operation, the premium per hundredweight for each coverage level is specified in the table contained in paragraph (2).
(2) Producer premiums The following annual premiums apply:
Coverage Level
Premium per Cwt.
$4.00
None
$4.50
$0.020
$5.00
$0.040
$5.50
$0.100
$6.00
$0.155
$6.50
$0.290
$7.00
$0.830
$7.50
$1.060
$8.00
$1.360
(d) Time for payment of premium The Secretary shall provide more than 1 method by which a participating dairy operation may pay the premium required under this section in any manner that maximizes participating dairy operation payment flexibility and program integrity.
(e) Premium obligations (1) Pro-ration of premium for new participants In the case of a participating dairy operation that first registers to participate in the margin protection program for a calendar year after the start of the calendar year, the participating dairy operation shall pay a pro-rated premium for that calendar year based on the portion of the calendar year for which the participating dairy operation purchases the coverage.
(2) Legal obligation A participating dairy operation in the margin protection program for a calendar year shall be legally obligated to pay the applicable premium for that calendar year, except that the Secretary may waive that obligation, under terms and conditions determined by the Secretary, for any participating dairy operation in the case of death, retirement, permanent dissolution of a participating dairy operation, or other circumstances as the Secretary considers appropriate to ensure the integrity of the program.