7 USC CHAPTER 115, SUBCHAPTER III: DAIRY

From Title 7—AGRICULTURECHAPTER 115—AGRICULTURAL COMMODITY POLICY AND PROGRAMS

SUBCHAPTER III—DAIRY

Part A—Dairy Margin Coverage

Editorial Notes

Codification

Pub. L. 115–334, title I, §1401(k)(1), Dec. 20, 2018, 132 Stat. 4516, substituted "Dairy Margin Coverage" for "Margin Protection Program for Dairy Producers" in part heading.

§9051. Definitions

In this part:

(1) Actual dairy production margin

The term "actual dairy production margin" means the difference between the all-milk price and the average feed cost, as calculated under section 9052 of this title.

(2) All-milk price

The term "all-milk price" means the average price received, per hundredweight of milk, by dairy operations for all milk sold to plants and dealers in the United States, as determined by the Secretary.

(3) Average feed cost

The term "average feed cost" means the average cost of feed used by a dairy operation to produce a hundredweight of milk, determined under section 9052 of this title using the sum of the following:

(A) The product determined by multiplying 1.0728 by the price of corn per bushel.

(B) The product determined by multiplying 0.00735 by the price of soybean meal per ton.

(4) Dairy operation

(A) In general

The term "dairy operation" means, as determined by the Secretary, 1 or more dairy producers that produce and market milk as a single dairy operation in which each dairy producer—

(i) shares in the risk of producing milk; and

(ii) makes contributions (including land, labor, management, equipment, or capital) to the dairy operation of the individual or entity, which are at least commensurate with the individual or entity's share of the proceeds of the operation.

(B) Additional ownership structures

The Secretary shall determine additional ownership structures to be covered by the definition of dairy operation.

(5) Dairy margin coverage

The term "dairy margin coverage" means the dairy margin coverage program required by section 9053 of this title.

(6) Dairy margin coverage payment

The term "dairy margin coverage payment" means a payment made to a participating dairy operation under dairy margin coverage pursuant to section 9056 of this title.

(7) Participating dairy operation

The term "participating dairy operation" means a dairy operation that registers under section 9054 of this title to participate in dairy margin coverage.

(8) Production history

The term "production history" means the production history determined for a participating dairy operation under subsection (a) or (b) of section 9055 of this title when the participating dairy operation first registers to participate in dairy margin coverage.

(9) Secretary

The term "Secretary" means the Secretary of Agriculture.

(10) United States

The term "United States", in a geographical sense, means the 50 States, the District of Columbia, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, the Virgin Islands of the United States, and any other territory or possession of the United States.

(Pub. L. 113–79, title I, §1401, Feb. 7, 2014, 128 Stat. 688; Pub. L. 115–123, div. F, §60101(b)(1)(A), Feb. 9, 2018, 132 Stat. 311; Pub. L. 115–334, title I, §§1401(k)(2), 1404(b)(2), Dec. 20, 2018, 132 Stat. 4516, 4521.)

Editorial Notes

Amendments

2018—Pub. L. 115–334, §1404(b)(2), struck out "and part B" after "this part" in introductory provisions.

Par. (4). Pub. L. 115–123 redesignated par. (5) as (4) and struck out former par. (4). Prior to amendment, text read as follows: "The term 'consecutive 2-month period' refers to the 2-month period consisting of the months of January and February, March and April, May and June, July and August, September and October, or November and December, respectively."

Pars. (5), (6). Pub. L. 115–334, §1401(k)(2)(A), added pars. (5) and (6) and struck out former pars. (5) and (6) which defined the terms "margin protection program" and "margin protection program payment", respectively.

Pub. L. 115–123, §60101(b)(1)(A)(ii), redesignated pars. (6) and (7) as (5) and (6), respectively. Former par. (5) redesignated (4).

Pars. (7), (8). Pub. L. 115–334, §1401(k)(2)(B), substituted "dairy margin coverage" for "the margin protection program".

Pub. L. 115–123, §60101(b)(1)(A)(ii), redesignated pars. (8) and (9) as (7) and (8), respectively. Former par. (7) redesignated (6).

Pars. (9) to (11). Pub. L. 115–123, §60101(b)(1)(A)(ii), redesignated pars. (10) and (11) as (9) and (10), respectively. Former par. (9) redesignated (8).

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Pub. L. 115–334, title I, §1401(m), Dec. 20, 2018, 132 Stat. 4518, provided that: "The amendments made by this section [amending this section and sections 9052 to 9060 of this title] shall take effect on January 1, 2019."

Pub. L. 115–123, div. F, §60101(b)(5), Feb. 9, 2018, 132 Stat. 312, provided that: "The amendments made by this subsection [amending this section and sections 9052 and 9054 to 9057 of this title] shall apply beginning with the 2018 calendar year."

§9052. Calculation of average feed cost and actual dairy production margins

(a) Calculation of average feed cost

The Secretary shall calculate the national average feed cost for each month using the following data:

(1) The price of corn for a month shall be the price received during that month by farmers in the United States for corn, as reported in the monthly Agricultural Prices report by the Secretary.

(2) The price of soybean meal for a month shall be the central Illinois price for soybean meal, as reported in the Market News–Monthly Soybean Meal Price Report by the Secretary.

(3) The price of alfalfa hay for a month shall be the price received during that month by farmers in the United States for alfalfa hay, as reported in the monthly Agricultural Prices report by the Secretary.

(b) Calculation of actual dairy production margin

(1) In general

For use in dairy margin coverage, the Secretary shall calculate the actual dairy production margin for each month by subtracting—

(A) the average feed cost for that month, determined in accordance with subsection (a); from

(B) the all-milk price for that month.

(2) Time for calculation

The calculation required by this subsection shall be made as soon as practicable using the full-month price of the applicable reference month.

(Pub. L. 113–79, title I, §1402, Feb. 7, 2014, 128 Stat. 689; Pub. L. 115–123, div. F, §60101(b)(1)(B), Feb. 9, 2018, 132 Stat. 311; Pub. L. 115–334, title I, §1401(k)(3), Dec. 20, 2018, 132 Stat. 4516.)

Editorial Notes

Amendments

2018—Subsec. (b)(1). Pub. L. 115–334 substituted "dairy margin coverage" for "the margin protection program" in introductory provisions.

Pub. L. 115–123 substituted "month" for "consecutive 2-month period" wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title.

Amendment by Pub. L. 115–123 applicable beginning with the 2018 calendar year, see section 60101(b)(5) of Pub. L. 115–123, set out as a note under section 9051 of this title.

Collection of Alfalfa Hay Data

Pub. L. 115–334, title I, §1401(c), Dec. 20, 2018, 132 Stat. 4512, provided that: "Not later than 120 days after the date of the enactment of this Act [Dec. 20, 2018], the Secretary [of Agriculture], acting through the National Agricultural Statistics Service, shall revise monthly price survey reports to include prices for high-quality alfalfa hay in the top five milk producing States, as measured by volume of milk produced during the previous month."

§9053. Dairy margin coverage

(a) In general

The Secretary shall continue to administer a dairy margin coverage program for dairy producers under which participating dairy operations are paid a dairy margin coverage payment when actual dairy production margins are less than the threshold levels for a dairy margin coverage payment.

(b) Regulations

Subpart A of part 1430 of title 7, Code of Federal Regulations (as in effect on December 20, 2018), shall remain in effect for dairy margin coverage beginning with the 2019 calendar year, except to the extent that the regulations are inconsistent with any provision of this Act.

(Pub. L. 113–79, title I, §1403, Feb. 7, 2014, 128 Stat. 689; Pub. L. 115–334, title I, §1401(k)(4), Dec. 20, 2018, 132 Stat. 4516.)

Editorial Notes

References in Text

This Act, referred to in subsec. (b), is Pub. L. 113–79, Feb. 7, 2014, 128 Stat. 649, known as the Agricultural Act of 2014. For complete classification of this Act to the Code, see Short Title note set out under section 9001 of this title and Tables.

Amendments

2018—Pub. L. 115–334, §1401(k)(4)(B)–(D), designated existing provisions as subsec. (a), inserted heading, substituted "The Secretary shall continue to administer a dairy margin coverage program" for "Not later than September 1, 2014, the Secretary shall establish and administer a margin protection program", substituted "dairy margin coverage payment" for "margin protection payment" in two places, and added subsec. (b).

Pub. L. 115–334, §1401(k)(4)(A), substituted "Dairy margin coverage" for "Establishment of margin protection program for dairy producers" in section catchline.

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title.

§9054. Participation of dairy operations in dairy margin coverage

(a) Eligibility

All dairy operations in the United States shall be eligible to participate in dairy margin coverage to receive dairy margin coverage payments.

(b) Registration process

(1) In general

The Secretary shall specify the manner and form by which a participating dairy operation may register to participate in dairy margin coverage, including the establishment of a date each calendar year by which a dairy operation shall register for the calendar year.

(2) Extension of election period for 2018 calendar year

(A) In general

The Secretary shall extend the election period for the 2018 calendar year by not less than 90 days after February 9, 2018, or such additional period as the Secretary determines is necessary for dairy operations to make new elections to participate for that calendar year, including dairy operations that elected to so participate before February 9, 2018.

(B) Retroactive program option

In the case of a dairy operation that, by operation of subsection (d) (as in effect on the day before December 20, 2018), was ineligible to participate in the margin protection program for any part of calendar year 2018, the Secretary shall establish a new election period for that calendar year that ends on a date that is not less than 90 days after December 20, 2018, and the Secretary determines is necessary for dairy operations to make new elections to participate in the margin protection program (as in effect on the day before December 20, 2018) for that calendar year, including dairy operations that elected to participate in the livestock gross margin for dairy program under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) before February 9, 2018.

(3) Election period for 2019 calendar year

For the 2019 calendar year, the Secretary shall—

(A) open the election period not later than 60 days after the effective date described in section 1401(m) of the Agriculture Improvement Act of 2018; and

(B) hold that election period open for not less than 90 days.

(4) Treatment of multiproducer dairy operation

(A) In general

If a participating dairy operation is operated by more than 1 dairy producer, the dairy producers of the dairy operation who elect to participate shall be treated as a single dairy operation for purposes of participating in dairy margin coverage.

(B) Rule of construction

Subparagraph (A) shall not be construed to allow a producer to adjust the proportion of their share covered under tier I or tier II premiums from the proportion covered for the operation.

(5) Treatment of producers with multiple dairy operations

If a dairy producer operates 2 or more dairy operations, each dairy operation of the producer shall separately register to participate in dairy margin coverage.

(c) Annual administrative fee

(1) Administrative fee required

Each participating dairy operation shall—

(A) pay an administrative fee to register to participate in dairy margin coverage; and

(B) pay the administrative fee annually through the duration of dairy margin coverage specified in section 9059 of this title.

(2) Amount of fee

The administrative fee for a participating dairy operation shall be $100.

(3) Use of fees

The Secretary shall use administrative fees collected under this subsection to cover administrative costs incurred to carry out dairy margin coverage.

(4) Exemption

A limited resource, beginning, veteran, or socially disadvantaged farmer, as defined by the Secretary, shall be exempt from the administrative fee under this subsection.

(Pub. L. 113–79, title I, §1404, Feb. 7, 2014, 128 Stat. 690; Pub. L. 115–123, div. F, §60101(b)(2), Feb. 9, 2018, 132 Stat. 311; Pub. L. 115–334, title I, §1401(d), (e), (k)(5), Dec. 20, 2018, 132 Stat. 4512, 4517.)

Editorial Notes

References in Text

The Federal Crop Insurance Act, referred to in subsec. (b)(2)(B), is subtitle A of title V of act Feb. 16, 1938, ch. 30, 52 Stat. 72, which is classified generally to subchapter I (§1501 et seq.) of chapter 36 of this title. For complete classification of this Act to the Code, see section 1501 of this title and Tables.

Section 1401(m) of the Agriculture Improvement Act of 2018, referred to in subsec. (b)(3)(A), is section 1401(m) of Pub. L. 115–334, which is set out as a note under section 9051 of this title.

Amendments

2018—Pub. L. 115–334, §1401(k)(5)(A), substituted "dairy margin coverage" for "margin protection program" in section catchline.

Subsec. (a). Pub. L. 115–334, §1401(k)(5)(B), substituted "eligible to participate in dairy margin coverage to receive dairy margin coverage payments" for "eligible to participate in the margin protection program to receive margin protection payments".

Subsec. (b)(1). Pub. L. 115–334, §1401(k)(5)(C), substituted "dairy margin coverage" for "the margin protection program".

Pub. L. 115–123, §60101(b)(2)(A)(i), inserted ", including the establishment of a date each calendar year by which a dairy operation shall register for the calendar year" before period at end.

Subsec. (b)(2). Pub. L. 115–334, §1401(e)(2), designated existing provisions as subpar. (A), inserted heading, and added subpar. (B).

Pub. L. 115–123, §60101(b)(2)(A)(iii), added par. (2). Former par. (2) redesignated (3).

Subsec. (b)(3). Pub. L. 115–334, §1401(d)(2), added par. (3) and struck out former par. (3). Prior to amendment, text read as follows: "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 participating in the margin protection program."

Pub. L. 115–123, §60101(b)(2)(A)(ii), redesignated par. (2) as (3). Former par. (3) redesignated (4).

Subsec. (b)(4). Pub. L. 115–334, §1401(d)(2), added par. (4). Former par. (4) redesignated (5).

Pub. L. 115–123, §60101(b)(2)(A)(ii), redesignated par. (3) as (4).

Subsec. (b)(5). Pub. L. 115–334, §1401(k)(5)(C), substituted "dairy margin coverage" for "the margin protection program".

Pub. L. 115–334, §1401(d)(1), redesignated par. (4) as (5).

Subsec. (c)(1), (3). Pub. L. 115–334, §1401(k)(5)(C), substituted "dairy margin coverage" for "the margin protection program" wherever appearing.

Subsec. (c)(4). Pub. L. 115–123, §60101(b)(2)(B), added par. (4).

Subsec. (d). Pub. L. 115–334, §1401(e)(1), struck out subsec. (d). Text read as follows: "A dairy operation may participate in the 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."

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title.

Amendment by Pub. L. 115–123 applicable beginning with the 2018 calendar year, see section 60101(b)(5) of Pub. L. 115–123, set out as a note under section 9051 of this title.

§9055. Production history of participating dairy operations

(a) Production history

(1) In general

Except as provided in paragraph (4) and subsection (b), when a dairy operation first registers to participate in dairy margin coverage, the production history of the dairy operation for dairy margin coverage is equal to the highest annual milk marketings of the participating dairy operation during any one of the 2011, 2012, or 2013 calendar years.

(2) Adjustment

In the subsequent calendar years ending before January 1, 2019, the Secretary shall adjust the production history of a participating dairy operation determined under paragraph (1) to reflect any increase in the national average milk production.

(3) Continued applicability of base production history

A production history established for a dairy operation under paragraph (1) shall be the base production history for the dairy operation in subsequent years (as adjusted under paragraph (2), as applicable).

(4) Base production history adjustment for participating dairy operations with production of less than 5,000,000 pounds

(A) In general

If the amount determined under paragraph (1) is less than 5,000,000 pounds, the production history of the dairy operation for dairy margin coverage shall be equal to—

(i) the amount determined under paragraph (1); plus

(ii) 75 percent of the amount described in subparagraph (B).

(B) Amount

The amount referred to in subparagraph (A)(ii) is, with respect to a dairy operation, the amount equal to—

(i) the production volume of such dairy operation for the 2019 milk marketing year; minus

(ii) the amount determined under paragraph (1).

(b) Election by new dairy operations

(1) Dairy operations with less than 1 year of production history

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 production history of the participating dairy operation:

(A) The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount.

(B) 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.

(2) Dairy operations with 1 year or more of production history

In the case of a participating dairy operation that was not in operation prior to January 1, 2014, that has not established a production history, and that has been in operation for equal to or longer than 1 year, the participating dairy operation shall elect the annual milk marketings during any 1 calendar year to determine the production history of the participating dairy operation.

(3) Adjustment

The Secretary shall adjust the production history of a participating dairy operation determined under paragraph (1) or (2) to reflect any increase or decrease in the national average milk production relative to calendar year 2017.

(c) Required information

A participating dairy operation shall provide all information that the Secretary may require in order to establish the production history of the participating dairy operation for purposes of participating in dairy margin coverage.

(d) Limitation on changes to business structure

The Secretary may not make dairy margin coverage payments to a participating dairy operation if the Secretary determines that the participating dairy operation has reorganized the structure of such operation solely for the purpose of qualifying as a new operation under subsection (b).

(Pub. L. 113–79, title I, §1405, Feb. 7, 2014, 128 Stat. 690; Pub. L. 115–123, div. F, §60101(b)(3), Feb. 9, 2018, 132 Stat. 311; Pub. L. 115–334, title I, §1401(f), (k)(6), Dec. 20, 2018, 132 Stat. 4513, 4517; Pub. L. 118–22, div. B, title I, §102(c)(2)(A), Nov. 17, 2023, 137 Stat. 115.)

Editorial Notes

Amendments

2023—Subsec. (a)(1). Pub. L. 118–22, §102(c)(2)(A)(i), inserted "paragraph (4) and" before "subsection (b)".

Subsec. (a)(4). Pub. L. 118–22, §102(c)(2)(A)(ii), added par. (4).

2018—Subsec. (a)(1). Pub. L. 115–334, §1401(k)(6), substituted "dairy margin coverage" for "the margin protection program" in two places.

Subsec. (a)(2). Pub. L. 115–334, §1401(f)(1)(A)(i), substituted "In the subsequent calendar years ending before January 1, 2019" for "In subsequent years".

Subsec. (a)(3). Pub. L. 115–334, §1401(f)(1)(A)(ii), inserted ", as applicable" after "paragraph (2)".

Pub. L. 115–123 added par. (3).

Subsec. (b). Pub. L. 115–334, §1401(f)(1)(B), designated existing provisions as par. (1), inserted heading, redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1), realigned margins, and added pars. (2) and (3).

Subsec. (c). Pub. L. 115–334, §1401(k)(6), substituted "dairy margin coverage" for "the margin protection program".

Subsec. (d). Pub. L. 115–334, §1401(f)(2), added subsec. (d).

Statutory Notes and Related Subsidiaries

Effective Date of 2023 Amendment

Amendment by Pub. L. 118–22 to be applied and administered as if enacted on Sept. 30, 2023, see section 102(g) of Pub. L. 118–22, set out in an Extension of Agricultural Programs note under section 9001 of this title.

Effective Date of 2018 Amendment

Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title.

Amendment by Pub. L. 115–123 applicable beginning with the 2018 calendar year, see section 60101(b)(5) of Pub. L. 115–123, set out as a note under section 9051 of this title.

§9056. Dairy margin coverage payments

(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 5,000,000 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 5,000,000 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.

(Pub. L. 113–79, title I, §1406, Feb. 7, 2014, 128 Stat. 691; Pub. L. 115–123, div. F, §60101(b)(1)(C), Feb. 9, 2018, 132 Stat. 311; Pub. L. 115–334, title I, §1401(g), (k)(7), Dec. 20, 2018, 132 Stat. 4513, 4517.)

Editorial Notes

Amendments

2018—Pub. L. 115–334, §1401(k)(7)(A) substituted "Dairy margin coverage" for "Margin protection" in section catchline.

Pub. L. 115–123, §60101(b)(1)(C)(i), substituted "month" for "consecutive 2-month period" wherever appearing.

Subsec. (a). Pub. L. 115–334, §1401(g), added subsec. (a) and struck out former subsec. (a). Prior to amendment, text read as follows: "For purposes of receiving margin protection payments for a month, a participating dairy operation shall annually elect—

"(1) 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

"(2) 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."

Subsec. (b). Pub. L. 115–334, §1401(k)(7)(B), substituted "dairy margin coverage" for "margin protection".

Subsec. (c). Pub. L. 115–334, §1401(k)(7)(B), (C), struck out "margin protection" before "payment" in heading and substituted "dairy margin coverage" for "margin protection" in text.

Subsec. (c)(2)(B). Pub. L. 115–123, §60101(b)(1)(C)(ii), substituted "divided by 12" for "divided by 6".

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title.

Amendment by Pub. L. 115–123 applicable beginning with the 2018 calendar year, see section 60101(b)(5) of Pub. L. 115–123, set out as a note under section 9051 of this title.

Supplemental Dairy Margin Coverage Payments

Pub. L. 116–260, div. N, title VII, §761, Dec. 27, 2020, 134 Stat. 2109, provided that:

"(a) In General.—The Secretary shall provide supplemental dairy margin coverage payments to participating eligible dairy operations described in subsection (b)(1) whenever the average actual dairy production margin (as defined in section 1401 of the Agricultural Act of 2014 (7 U.S.C. 9051)) for a month is less than the coverage level threshold selected by such eligible dairy operation under section 1406 of that Act (7 U.S.C. 9056).

"(b) Eligible Dairy Operation Described.—

"(1) In general.—An eligible dairy operation described in this subsection is a dairy operation that—

"(A) is located in the United States; and

"(B) during a calendar year in which such dairy operation is a participating dairy operation (as defined in section 1401 of the Agricultural Act of 2014 (7 U.S.C. 9051)), has a production history established under the dairy margin coverage program under section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) of less than 5,000,000 pounds, as determined in accordance with subsection (c) of such section 1405.

"(2) Limitation on eligibility.—An eligible dairy operation shall only be eligible for payments under this section during a calendar year in which such eligible dairy operation is enrolled in the dairy margin coverage (as defined in section 1401 of the Agricultural Act of 2014 (7 U.S.C. 9051)).

"(c) Supplemental Production History Calculation.—

"(1) In general.—For purposes of determining the supplemental production history of an eligible dairy operation under this section, such dairy operation's supplemental production history shall be equal to 75 percent of the amount described in paragraph (2) with respect to such dairy operation.

"(2) Amount.—The amount referred to in paragraph (1) is, with respect to an eligible dairy operation, the amount equal to—

"(A) the production volume of such dairy operation for the 2019 milk marketing year; minus

"(B) the dairy margin coverage production history of such dairy operation established under section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055).

"(d) Coverage Percentage.—

"(1) In general.—For purposes of calculating payments to be issued under this section during a calendar year, an eligible dairy operation's coverage percentage shall be equal to the coverage percentage selected by such eligible dairy operation with respect to such calendar year under section 1406 of the Agricultural Act of 2014 (7 U.S.C. 9056).

"(2) 5 million pound limitation.—

"(A) In general.—The Secretary shall not provide supplemental dairy margin coverage on an eligible dairy operation's actual production for a calendar year such that the total covered production history of such dairy operation exceeds 5,000,000 pounds.

"(B) Determination of amount.—In calculating the total covered production history of an eligible dairy operation under subparagraph (A), the Secretary shall multiply the coverage percentage selected by such operation under section 1406 of the Agricultural Act of 2014 (7 U.S.C. 9056) by the sum of—

"(i) the supplemental production history calculated under subsection (c) with respect to such dairy operation; and

"(ii) the dairy margin coverage production history described in subsection (c)(2)(B) with respect to such dairy operation.

"(e) Premium Cost.—The premium cost for an eligible dairy operation under this section for a calendar year shall be equal to the product of multiplying—

"(1) the Tier I premium cost calculated with respect to such dairy operation for such year under section 1407(b) of the Agricultural Act of 2014 (7 U.S.C. 9057(b)); by

"(2) the supplemental production history with respect to such dairy operation calculated under subsection (c) (such that total covered production history does not exceed 5,000,000 pounds).

"(f) Regulations.—Not later than 45 days after the date of the enactment of this section [Dec. 27, 2020], the Secretary shall issue regulations to carry out this section.

"(g) Prohibition With Respect to Dairy Margin Coverage Enrollment.—

"(1) In general.—The Secretary may not reopen or otherwise provide a special enrollment for dairy margin coverage (as defined in section 1401 of the Agricultural Act of 2014 (7 U.S.C. 9051)) for purposes of establishing eligibility for supplemental dairy margin coverage payments under this section.

"(2) Clarification with respect to supplemental dairy margin coverage payments.—The Secretary may open a special enrollment for supplemental dairy margin coverage under this section.

"(h) Application for Calendar Year 2021.—The Secretary shall make payments under this section to eligible dairy operations described in subsection (b)(1) for months after and including January, 2021.

"(i) Sunset.—The authority to make payments under this section shall terminate on December 31, 2023.

"(j) Funding.—There is appropriated, out of any funds in the Treasury not otherwise appropriated, to carry out this section such sums as necessary, to remain available until the date specified in subsection (i)."

[For definition of "Secretary" as used in section 761 of div. N of Pub. L. 116–260, set out above, see section 760 of div. N of Pub. L. 116–260, set out as a note under section 5936a of this title.]

§9057. Premiums for dairy margin coverage

(a) Calculation of premiums

For purposes of participating in dairy margin coverage, 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) Tier I: premium per hundredweight for first 5,000,000 pounds of production

(1) In general

For the first 5,000,000 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 subsection (g), the following annual premiums apply:


Coverage Level	Premium per Cwt.
$4.00	None
$4.50	$0.0025
$5.00	$0.005
$5.50	$0.030
$6.00	$0.050
$6.50	$0.070
$7.00	$0.080
$7.50	$0.090
$8.00	$0.100
$8.50	$0.105
$9.00	$0.110
$9.50	$0.150

(c) Tier II: premium per hundredweight for production in excess of 5,000,000 pounds

(1) In general

For milk marketings in excess of 5,000,000 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

Except as provided in subsection (g), the following annual premiums apply:


Coverage Level	Premium per Cwt.
$4.00	None
$4.50	$0.0025
$5.00	$0.005
$5.50	$0.100
$6.00	$0.310
$6.50	$0.650
$7.00	$1.107
$7.50	$1.413
$8.00	$1.813

(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 dairy margin coverage 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 dairy margin coverage 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 dairy margin coverage 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 dairy margin coverage.

(f) Repayment of premiums

(1) In general

Each dairy operation described in paragraph (2) shall be eligible to receive a repayment from the Secretary in an amount equal to the difference between—

(A) the total amount of premiums paid by the participating dairy operation under this section for each applicable calendar year; and

(B) the total amount of payments made to the participating dairy operation under section 9056 of this title for that calendar year.

(2) Eligibility

A dairy operation that is eligible to receive a repayment under paragraph (1) is a dairy operation that—

(A) participated in the margin protection program, as in effect for any of calendar years 2014 through 2017; and

(B) submits to the Secretary an application for the repayment at such time, in such manner, and containing such information as the Secretary may require.

(3) Method of repayment

A dairy operation that is eligible to receive a repayment under paragraph (1) shall elect to receive the repayment—

(A) in an amount equal to 75 percent of the repayment calculated under that paragraph as credit that may be used by the dairy operation for dairy margin coverage premiums; or

(B) in an amount equal to 50 percent of the repayment calculated under that paragraph as a direct cash repayment.

(4) Applicability

Paragraph (1) shall only apply to a calendar year during the period of calendar years 2014 through 2017 for which the amount described in subparagraph (A) of that paragraph is greater than the amount described in subparagraph (B) of that paragraph.

(g) Premium discount

The premium per hundredweight specified in the tables contained in subsections (b) and (c) for each coverage level shall be reduced by 25 percent in accordance with the following:

(1) In general

For each of calendar years 2019 through 2023, for a participating dairy operation that makes a 1-time election of coverage level in a tier and of a percentage of coverage under section 9056(a) of this title for the 5-year period beginning in January 2019.

(2) New dairy operations

For each applicable calendar year through 2023, for a participating dairy operation that—

(A) establishes a production history pursuant to section 9055(b) of this title; and

(B) makes a 1-time election of coverage level in a tier and of a percentage of coverage under section 9056(a) of this title for the period beginning with the first available calendar year and ending in December 2023.

(3) Full participation required

Notwithstanding the annual elections under section 9056(a) of this title—

(A) a 1-time enrollment under this subsection shall remain in effect for the full duration applicable to a participating dairy operation in accordance with paragraph (1) or (2)(B), as applicable; and

(B) a participating dairy operation that makes a 1-time enrollment under this subsection and is noncompliant under section 9058 of this title shall be subject to that section.

(Pub. L. 113–79, title I, §1407, Feb. 7, 2014, 128 Stat. 691; Pub. L. 115–123, div. F, §60101(b)(4), Feb. 9, 2018, 132 Stat. 312; Pub. L. 115–334, title I, §1401(h)–(j), (k)(8), Dec. 20, 2018, 132 Stat. 4514, 4515, 4517.)

Editorial Notes

Amendments

2018—Pub. L. 115–334, §1401(k)(8)(A), substituted "dairy margin coverage" for "margin protection program" in section catchline.

Subsec. (a). Pub. L. 115–334, §1401(k)(8)(B), substituted "dairy margin coverage" for "the margin protection program" in introductory provisions.

Subsec. (b). Pub. L. 115–123, §60101(b)(4)(A)(i), substituted "Tier I: premium per hundredweight for first 5,000,000 pounds of production" for "Premium per hundredweight for first 4 million pounds of production" in heading.

Subsec. (b)(1). Pub. L. 115–123, §60101(b)(4)(A)(ii), substituted "5,000,000" for "4,000,000".

Subsec. (b)(2). Pub. L. 115–334, §1401(h)(1), added par. (2) and struck out former par. (2) which set forth table of annual premiums, applicable except as provided in par. (3).

Pub. L. 115–123, §60101(b)(4)(A)(iii), in Premium per Cwt. column of table, substituted "None" for "$0.010", "None" for "$0.025", "$0.009" for "$0.040", "$0.016" for "$0.055", "$0.040" for "$0.090", "$0.063" for "$0.217", "$0.087" for "$0.300", and "$0.142" for "$0.475".

Subsec. (b)(3). Pub. L. 115–334, §1401(h)(1), struck out par. (3). Text read as follows: "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."

Subsec. (c). Pub. L. 115–123, §60101(b)(4)(B)(i), substituted "Tier II: premium per hundredweight for production in excess of 5,000,000 pounds" for "Premium per hundredweight for production in excess of 4 million pounds" in heading.

Subsec. (c)(1). Pub. L. 115–123, §60101(b)(4)(B)(ii), substituted "5,000,000" for "4,000,000".

Subsec. (c)(2). Pub. L. 115–334, §1401(h)(2), added par. (2) and struck out former par. (2) which set forth table of annual producer premiums.

Subsec. (d). Pub. L. 115–334, §1401(k)(8)(C), substituted "dairy margin coverage integrity" for "program integrity".

Subsec. (e). Pub. L. 115–334, §1401(k)(8)(D)(i), substituted "in dairy margin coverage" for "in the margin protection program" in two places.

Subsec. (e)(2). Pub. L. 115–334, §1401(k)(8)(D)(ii), substituted "integrity of dairy margin coverage" for "integrity of the program".

Subsec. (f). Pub. L. 115–334, §1401(i), added subsec. (f).

Subsec. (g). Pub. L. 115–334, §1401(j), added subsec. (g).

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title.

Amendment by Pub. L. 115–123 applicable beginning with the 2018 calendar year, see section 60101(b)(5) of Pub. L. 115–123, set out as a note under section 9051 of this title.

Availability of Premium Discount

Pub. L. 118–22, div. B, title I, §102(c)(2)(B)(ii), Nov. 17, 2023, 137 Stat. 115, provided that: "With respect to coverage for calendar year 2024, section 1407(g) of the Agricultural Act of 2014 (7 U.S.C. 9057(g)) shall only apply to a participating dairy operation with respect to which the premium was reduced in accordance with that section for calendar year 2023."

§9058. Effect of failure to pay administrative fees or premiums

(a) Loss of benefits

A participating dairy operation that fails to pay the required annual administrative fee under section 9054 of this title or is in arrears on premium payments under section 9057 of this title—

(1) remains legally obligated to pay the administrative fee or premiums, as the case may be; and

(2) may not receive dairy margin coverage payments until the fees or premiums are fully paid.

(b) Enforcement

The Secretary may take such action as necessary to collect administrative fees and premium payments for participation in dairy margin coverage.

(Pub. L. 113–79, title I, §1408, Feb. 7, 2014, 128 Stat. 693; Pub. L. 115–334, title I, §1401(k)(9), Dec. 20, 2018, 132 Stat. 4517.)

Editorial Notes

Amendments

2018—Subsec. (a)(2). Pub. L. 115–334, §1401(k)(9)(A), substituted "dairy margin coverage" for "margin protection".

Subsec. (b). Pub. L. 115–334, §1401(k)(9)(B), substituted "dairy margin coverage" for "the margin protection program".

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title.

§9059. Duration

Dairy margin coverage shall end on December 31, 2024.

(Pub. L. 113–79, title I, §1409, Feb. 7, 2014, 128 Stat. 693; Pub. L. 115–334, title I, §1401(l), Dec. 20, 2018, 132 Stat. 4518; Pub. L. 118–22, div. B, title I, §102(c)(2)(B)(i), Nov. 17, 2023, 137 Stat. 115.)

Editorial Notes

Amendments

2023—Pub. L. 118–22 substituted "2024" for "2023".

2018—Pub. L. 115–334 substituted "Dairy margin coverage" for "The margin protection program" and "2023" for "2018".

Statutory Notes and Related Subsidiaries

Effective Date of 2023 Amendment

Effective Date of 2018 Amendment

Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title.

§9060. Administration and enforcement

(a) In general

The Secretary shall promulgate regulations to address administrative and enforcement issues involved in carrying out dairy margin coverage.

(b) Reconstitution

The Secretary shall promulgate regulations to prohibit a dairy producer from reconstituting a dairy operation for the purpose of the dairy producer receiving dairy margin coverage payments.

(c) Administrative appeals

Using authorities under section 1308(h) of this title and subtitle H of the Department of Agriculture Reorganization Act (7 U.S.C. 6991 et seq.), the Secretary shall promulgate regulations to provide for administrative appeals of decisions of the Secretary that are adverse to participants of dairy margin coverage.

(Pub. L. 113–79, title I, §1410, Feb. 7, 2014, 128 Stat. 693; Pub. L. 115–334, title I, §1401(k)(10), Dec. 20, 2018, 132 Stat. 4518.)

Editorial Notes

References in Text

The Department of Agriculture Reorganization Act, referred to in subsec. (c), probably means the Department of Agriculture Reorganization Act of 1994 which is title II of Pub. L. 103–354, Oct. 13, 1994, 108 Stat. 3209. Subtitle H of the Act is classified principally to subchapter VIII (§6991 et seq.) of chapter 98 of this title. For complete classification of this Act to the Code, see Tables.

Codification

Section is comprised of section 1410 of Pub. L. 113–79. Subsec. (d) of section 1410 of Pub. L. 113–79 amended section 7253 of this title.

Amendments

2018—Subsec. (a). Pub. L. 115–334, §1401(k)(10)(A), substituted "dairy margin coverage" for "the margin protection program".

Subsec. (b). Pub. L. 115–334, §1401(k)(10)(B), substituted "dairy margin coverage payments" for "margin protection payments".

Subsec. (c). Pub. L. 115–334, §1401(k)(10)(A), substituted "dairy margin coverage" for "the margin protection program".

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title.

Part B—Milk Donation Program

Editorial Notes

Codification

Pub. L. 115–334, title I, §1404(b)(1), Dec. 20, 2018, 132 Stat. 4519, substituted "Milk Donation Program" for "Dairy Product Donation Program" in part heading.

§9071. Milk donation program

(a) Definitions

In this section:

(1) Eligible dairy organization

The term "eligible dairy organization" means a dairy farmer (either individually or as part of a cooperative), or a dairy processor, who—

(A) accounts to a Federal milk marketing order marketwide pool; and

(B) incurs qualified expenses under subsection (e).

(2) Eligible distributor

The term "eligible distributor" means a public or private nonprofit organization that distributes donated eligible milk.

(3) Eligible milk

The term "eligible milk" means Class I fluid milk products produced and processed in the United States.

(4) Eligible partnership

The term "eligible partnership" means a partnership between an eligible dairy organization and an eligible distributor.

(5) Participating partnership

The term "participating partnership" means an eligible partnership for which the Secretary has approved a donation and distribution plan for eligible milk under subsection (c)(2).

(b) Program required; purposes

Not later than 180 days after December 20, 2018, the Secretary shall establish and administer a milk donation program for the purposes of—

(1) encouraging the donation of eligible milk;

(2) providing nutrition assistance to individuals in low-income groups; and

(3) reducing food waste.

(c) Donation and distribution plans

(1) In general

To be eligible to receive reimbursement under subsection (d), an eligible partnership shall submit to the Secretary a donation and distribution plan that—

(A) describes the process that the eligible partnership will use for the donation, processing, transportation, temporary storage, and distribution of eligible milk;

(B) includes an estimate of the quantity of eligible milk that the eligible partnership will donate each year, based on—

(i) preplanned donations; and

(ii) contingency plans to address unanticipated donations; and

(C) describes the rate at which the eligible partnership will be reimbursed, which shall be based on a percentage of the limitation described in subsection (e)(2), not to exceed 100 percent.

(2) Review and approval

Not less frequently than annually, the Secretary shall—

(A) review donation and distribution plans submitted under paragraph (1); and

(B) determine whether to approve or disapprove each of those donation and distribution plans.

(d) Reimbursement

(1) In general

On receipt of appropriate documentation under paragraph (2), the Secretary shall reimburse an eligible dairy organization that is a member of a participating partnership on a regular basis for qualified expenses described in subsection (e).

(2) Documentation

(A) In general

An eligible dairy organization shall submit to the Secretary such documentation as the Secretary may require to demonstrate the qualified expenses described in subsection (e) of the eligible dairy organization.

(B) Verification

The Secretary may verify the accuracy of documentation submitted under subparagraph (A) by spot checks and audits.

(3) Retroactive reimbursement

In providing reimbursements under paragraph (1), the Secretary may provide reimbursements for qualified expenses incurred before the date on which the donation and distribution plan for the applicable participating partnership was approved by the Secretary.

(e) Qualified expenses

(1) In general

The amount of a reimbursement under subsection (d) shall be an amount equal to the product of—

(A) the quantity of eligible milk donated by the eligible dairy organization under a donation and distribution plan approved by the Secretary under subsection (c); and

(B) subject to the limitation under paragraph (2), the rate described in that donation and distribution plan under subsection (c)(1)(C).

(2) Limitation

Expenses eligible for reimbursement under subsection (d) shall not exceed the value that an eligible dairy organization incurred by accounting to the Federal milk marketing order pool at the difference in the Class I milk value and the lowest classified price for the applicable month (either Class III milk or Class IV milk).

(f) Preapproval

(1) In general

The Secretary shall—

(A) establish a process for an eligible partnership to apply for preapproval of donation and distribution plans under subsection (c); and

(B) not less frequently than annually, preapprove an amount for qualified expenses described in subsection (e) that the Secretary will allocate for reimbursement under each donation and distribution plan preapproved under subparagraph (A), based on an assessment of—

(i) the feasibility of the plan; and

(ii) the extent to which the plan advances the purposes described in subsection (b).

(2) Preference

In preapproving amounts for reimbursement under paragraph (1)(B), the Secretary shall give preference to eligible partnerships that will provide funding and in-kind contributions in addition to the reimbursements.

(3) Adjustments

(A) In general

The Secretary shall adjust or increase amounts preapproved for reimbursement under paragraph (1)(B) based on performance and demand.

(B) Requests for increase

(i) In general

The Secretary shall establish a procedure for a participating partnership to request an increase in the amount preapproved for reimbursement under paragraph (1)(B) based on changes in conditions.

(ii) Interim approval; incremental increase

The Secretary may provide an interim approval of an increase requested under clause (i) and an incremental increase in the amount of reimbursement to the applicable participating partnership to allow time for the Secretary to review the request without interfering with the donation and distribution of eligible milk by the participating partnership.

(g) Prohibition on resale of products

(1) In general

An eligible distributor that receives eligible milk donated under this section may not sell the products back into commercial markets.

(2) Prohibition on future participation

An eligible distributor that the Secretary determines has violated paragraph (1) shall not be eligible for any future participation in the program established under this section.

(h) Administration

The Secretary shall publicize opportunities to participate in the program established under this section.

(i) Reviews

The Secretary shall conduct appropriate reviews or audits to ensure the integrity of the program established under this section.

(j) Funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $9,000,000 for fiscal year 2019, and $5,000,000 for each fiscal year thereafter, to remain available until expended.

(Pub. L. 113–79, title I, §1431, as added Pub. L. 115–334, title I, §1404(b)(1), Dec. 20, 2018, 132 Stat. 4519.)

Editorial Notes

Prior Provisions

A prior section 9071, Pub. L. 113–79, title I, §1431, Feb. 7, 2014, 128 Stat. 695, related to dairy product donation program, prior to repeal by Pub. L. 115–334, title I, §1404(a), Dec. 20, 2018, 132 Stat. 4519.

§9071a. Dairy donation program

(a) Definitions

In this section:

(1) Eligible dairy organization

The term "eligible dairy organization" has the meaning given the term in section 9071(a) of this title.

(2) Eligible dairy product

The term "eligible dairy product" means a product primarily made from milk, including fluid milk, that is produced and processed in the United States.

(3) Eligible distributor

The term "eligible distributor" means a public or private nonprofit organization that distributes donated eligible dairy products to recipient individuals and families.

(4) Eligible partnership

The term "eligible partnership" means a partnership between an eligible dairy organization and an eligible distributor.

(b) Establishment and purposes

Not later than 60 days after December 27, 2020, the Secretary shall establish and administer a dairy donation program for the purposes of—

(1) facilitating the timely donation of eligible dairy products; and

(2) preventing and minimizing food waste.

(c) Donation and distribution plans

(1) In general

To be eligible to receive reimbursement under subsection (d), an eligible partnership shall submit to the Secretary a donation and distribution plan that describes the process that the eligible partnership will use for the donation, processing, transportation, temporary storage, and distribution of eligible dairy products.

(2) Review and approval

(A) In general

Not later than 15 business days after receiving a plan described in paragraph (1), the Secretary shall—

(i) review that plan; and

(ii) issue an approval or disapproval of that plan.

(B) Emergency and disaster-related prioritization

(i) In general

In receiving and reviewing a donation and distribution plan submitted under paragraph (1), the Secretary shall determine whether an emergency or disaster was a substantial factor in the submission, including—

(I) a declared or renewed public health emergency under section 247d of title 42; and

(II) a disaster designated by the Secretary.

(ii) Priority review

On making an affirmative determination under clause (i) with respect to a donation and distribution plan submitted under paragraph (1), the Secretary shall give priority to the approval or disapproval of that plan.

(d) Reimbursement

(1) In general

On receipt of appropriate documentation under paragraph (3), the Secretary shall reimburse an eligible dairy organization that is a member of an eligible partnership for which the Secretary has approved a donation and distribution plan under subsection (c)(2)(A)(ii) at a rate equal to the product obtained by multiplying—

(A) the current reimbursement price described in paragraph (2); and

(B) the volume of milk required to make the donated eligible dairy product.

(2) Reimbursement price

The Secretary—

(A) shall set the reimbursement price referred to in paragraph (1)(A) at a value that shall—

(i) be representative of the cost of the milk required to make the donated eligible dairy product;

(ii) be between the lowest and highest of the class I, II, III, or IV milk prices on the date of the production of the eligible dairy product;

(iii) be sufficient to avoid food waste; and

(iv) not interfere with the commercial marketing of milk or dairy products;

(B) may set appropriate reimbursement prices under subparagraph (A) for different eligible dairy products by class and region for the purpose of—

(i) encouraging the donation of surplus eligible dairy products;

(ii) facilitating the orderly marketing of milk;

(iii) reducing volatility relating to significant market disruptions;

(iv) maintaining traditional price relationships between classes of milk; or

(v) stabilizing on-farm milk prices.

(3) Documentation

(A) In general

An eligible dairy organization shall submit to the Secretary such documentation as the Secretary may require to demonstrate—

(i) the production of the eligible dairy product; and

(ii) the donation of the eligible dairy product to an eligible distributor.

(B) Verification

The Secretary may verify the accuracy of documentation submitted under subparagraph (A).

(4) Retroactive reimbursement

In providing reimbursements under paragraph (1), the Secretary may provide reimbursements for eligible dairy product costs incurred before the date on which the donation and distribution plan for the applicable participating partnership was approved by the Secretary under subsection (c)(2)(A)(ii).

(5) Emergency and disaster-related prioritization

In providing reimbursements under paragraph (1), the Secretary shall give priority to reimbursements to eligible dairy organizations covered by a donation and distribution plan for which the Secretary makes an affirmative determination under subsection (c)(2)(B)(i).

(e) Prohibition on resale of products

(1) In general

An eligible distributor that receives eligible dairy products donated under this section may not sell the eligible dairy products into commercial markets.

(2) Prohibition on future participation

An eligible distributor that the Secretary determines has violated paragraph (1) shall not be eligible for any future participation in the program established under this section.

(f) Reviews

The Secretary shall conduct appropriate reviews or audits to ensure the integrity of the program established under this section.

(g) Publication of donation activity

The Secretary, acting through the Administrator of the Agricultural Marketing Service, shall publish on the publicly accessible website of the Agricultural Marketing Service periodic reports describing donation activity under this section.

(h) Supplemental reimbursements

(1) In general

The Secretary shall make a supplemental reimbursement to an eligible dairy organization that received a reimbursement under the milk donation program established under section 9071 of this title during the period beginning on January 1, 2020, and ending on the date on which amounts made available under subsection (i) are no longer available.

(2) Reimbursement calculation

A supplemental reimbursement described in paragraph (1) shall be an amount equal to—

(A) the reimbursement calculated under subsection (d); minus

(B) the reimbursement under the milk donation program described in paragraph (1).

(i) Funding

Out of any amounts of the Treasury not otherwise appropriated, there is appropriated to the Secretary to carry out this section $400,000,000, to remain available until expended.

(Pub. L. 116–260, div. N, title VII, §762, Dec. 27, 2020, 134 Stat. 2111.)

Editorial Notes

Codification

Section was enacted as part of the Consolidated Appropriations Act, 2021, and not as part of title I of Pub. L. 113–79 which comprises this chapter.

Statutory Notes and Related Subsidiaries

Definition

For definition of "Secretary" as used in this section, see section 760 of div. N of Pub. L. 116–260, set out as a note under section 5936a of this title.