7 U.S.C. § 9056
Section 9056 · Dairy margin coverage payments
Viewing 7 U.S.C. § 9056 as in effect on February 7, 2014. The text changed in 2 later editions (most recent July 4, 2025).
View current version →For purposes of receiving margin protection payments for a consecutive 2-month period, 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.
A participating dairy operation shall receive a margin protection payment whenever the average actual dairy production margin for a consecutive 2-month period is less than the coverage level threshold selected by the participating dairy operation.
The margin protection 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 consecutive 2-month period.
(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 6.