Dairy Risk Management Act of 2018
This bill reauthorizes and modifies the Department of Agriculture (USDA) Margin Protection Program for dairy producers, which is a voluntary program that pays participating dairy operations when a formula-based national margin (the difference between milk prices and feed costs) falls below a producer-selected insured margin.
The bill changes the name of the program to the Dairy Risk Management Program and modifies coverage levels and premiums.
With respect to other USDA dairy programs, the bill:
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5462 Introduced in House (IH)]
<DOC>
115th CONGRESS
2d Session
H. R. 5462
To amend the Agricultural Act of 2014 to provide support for dairy
producers, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 10, 2018
Mr. Peterson introduced the following bill; which was referred to the
Committee on Agriculture
_______________________________________________________________________
A BILL
To amend the Agricultural Act of 2014 to provide support for dairy
producers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Dairy Risk Management Act of 2018''.
SEC. 2. DAIRY RISK MANAGEMENT PROGRAM FOR DAIRY PRODUCERS.
(a) Review of Data Used in Calculation of Average Feed Cost.--Not
later than 60 days after the date of the enactment of this Act, the
Secretary of Agriculture shall submit to the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report evaluating the extent to
which the average cost of feed used by a dairy operation to produce a
hundredweight of milk calculated by the Secretary as required by
section 1402(a) of the Agricultural Act of 2014 (7 U.S.C. 9052(a)) is
representative of actual dairy feed costs.
(b) Corn Silage Report.--Not later than 1 year after the date of
the enactment of this Act, the Secretary of Agriculture shall submit to
the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate a
report detailing the costs incurred by dairy operations in the use of
corn silage as feed, and the difference between the feed cost of corn
silage and the feed cost of corn.
(c) Collection of Alfalfa Hay Data.--Not later than 120 days after
the date of the enactment of this Act, 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.
(d) Registration of Multiproducer Dairy Operations.--Section
1404(b) of the Agricultural Act of 2014 (7 U.S.C. 9054(b)) is amended--
(1) in paragraph (3), by striking ``If'' and inserting
``Subject to paragraph (5), if''; and
(2) by adding at the end the following new paragraph:
``(5) Certain multiproducer dairy operation exclusions.--
``(A) Exclusion of low-percentage owners.--To
promote administrative efficiency in the dairy risk
management program, a multiproducer dairy operation
covered by paragraph (3) may elect, at the option of
the multiproducer dairy operation, to exclude
information from the registration process regarding any
individual owner of the multiproducer dairy operation
that--
``(i) holds less than a five percent
ownership interest in the multiproducer dairy
operation; or
``(ii) is entitled to less than five
percent of the income, revenue, profit, gain,
loss, expenditure, deduction, or credit of the
multiproducer dairy operation for any given
year.
``(B) Effect of exclusion on dairy risk management
payments.--To the extent that an individual owner of a
multiproducer dairy operation is excluded under
subparagraph (A) from the registration of the
multiproducer dairy operation, any dairy risk
management payment made to the multiproducer dairy
operation shall be reduced by an amount equal to the
greater of the following:
``(i) The amount determined by multiplying
the dairy risk management payment otherwise
determined under section 1406 by the total
percentage of ownership interests represented
by the excluded owners.
``(ii) The amount determined by multiplying
the dairy risk management payment otherwise
determined under section 1406 by the total
percentage of the income, revenue, profit,
gain, loss, expenditure, deduction, or credit
of the multiproducer dairy operation
represented by the excluded owners.''.
(e) Relation to Livestock Gross Margin for Dairy Program.--Section
1404(d) of the Agricultural Act of 2014 (7 U.S.C. 9054(d)) is amended--
(1) by striking ``but not both'' and inserting ``but not on
the same production'';
(2) by striking ``or the'' and inserting ``and the''; and
(3) by striking ``margin protection program'' and inserting
``dairy risk management program''.
(f) Production History of Participating Dairy Operators.--
(1) Continued use of prior dairy operation production
history.--Section 1405(a)(1) of the Agricultural Act of 2014 (7
U.S.C. 9055(a)(1)) is amended by adding at the end the
following new sentence: ``The production history of a
participating dairy operation shall continue to be based on
annual milk marketings during the 2011, 2012, or 2013 calendar
year notwithstanding the operation of the dairy risk management
program through 2023.''.
(2) Adjustment.--Section 1405(a) of the Agricultural Act of
2014 (7 U.S.C. 9055(a)) is amended--
(A) in paragraph (2), by striking ``In subsequent
years'' and inserting ``In the subsequent calendar
years ending before January 1, 2019''; and
(B) in paragraph (3), by inserting ``, as
applicable'' after ``paragraph (2)''.
(3) Limitation on changes to business structure.--Section
1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is amended
by adding at the end the following new subsection:
``(d) Limitation on Changes to Business Structure.--The Secretary
may not make dairy risk management 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).''.
(g) Dairy Risk Management Payments.--
(1) Election of coverage level threshold and coverage
percentage.--Section 1406 of the Agricultural Act of 2014 (7
U.S.C. 9056) is amended--
(A) in subsection (a), by striking ``annually'';
and
(B) by adding at the end the following new
subsection:
``(d) Deadline for Election; Duration.--Not later than 90 days
after the date of the enactment of this subsection, each participating
dairy operation shall elect a coverage level threshold under subsection
(a)(1) and a coverage percentage under subsection (a)(2) to be used to
determine dairy risk management payments. This election shall remain in
effect for the participating dairy operation for the duration of the
dairy risk management program, as specified in section 1409.''.
(2) Additional coverage level thresholds for certain
producers.--Section 1406(a)(1) of the Agricultural Act of 2014
(7 U.S.C. 9056(a)(1)) is amended by inserting after ``or
$8.00'' the following: ``(and in the case of production subject
to premiums under section 1407(b), also $8.50 or $9.00)''.
(3) Election of production history coverage percentage.--
Section 1406(a)(2) of the Agricultural Act of 2014 (7 U.S.C.
9056(a)(2)) is amended by striking ``beginning with 25 percent
and not exceeding'' and inserting ``but not to exceed''.
(h) Premiums for Participation in Dairy Risk Management Program.--
(1) Premium per hundredweight for first 5 million pounds of
production.--Section 1407(b) of the Agricultural Act of 2014 (7
U.S.C. 9057(b)) is amended--
(A) by striking paragraph (2) and inserting the
following new paragraph:
``(2) Producer premiums.--The following annual premiums
apply:
------------------------------------------------------------------------
``Coverage Level Premium per Cwt.
------------------------------------------------------------------------
$4.00 None
$4.50 $0.002
$5.00 $0.005
$5.50 $0.008
$6.00 $0.010
$6.50 $0.017
$7.00 $0.041
$7.50 $0.057
$8.00 $0.090
$8.50 $0.120
$9.00 $0.170'';
------------------------------------------------------------------------
and
(B) by striking paragraph (3).
(2) Technical correction.--Section 1407(d) of the
Agricultural Act of 2014 (7 U.S.C. 9057(d)) is amended in the
subsection heading by striking ``Time for'' and inserting
``Method of''.
(i) Conforming Amendments Related to Program Name.--
(1) Heading.--The heading of part I of subtitle D of title
I of the Agricultural Act of 2014 (Public Law 113-79; 128 Stat.
688) is amended to read as follows:
``PART I--DAIRY RISK MANAGEMENT PROGRAM FOR DAIRY PRODUCERS''.
(2) Definitions.--Section 1401 of the Agricultural Act of
2014 (7 U.S.C. 9051) is amended--
(A) by striking paragraphs (5) and (6) and
inserting the following new paragraphs:
``(5) Dairy risk management program.--The terms `dairy risk
management program' and `program' mean the dairy risk
management program required by section 1403.
``(6) Dairy risk management payment.--The term `dairy risk
management payment' means a payment made to a participating
dairy operation under the program pursuant to section 1406.'';
and
(B) in paragraphs (7) and (8), by striking ``margin
protection'' both places it appears.
(3) Calculation of actual dairy production margin.--Section
1402(b)(1) of the Agricultural Act of 2014 (7 U.S.C.
9052(b)(1)) is amended by striking ``margin protection'' and
inserting ``dairy risk management''.
(4) Program operation.--Section 1403 of the Agricultural
Act of 2014 (7 U.S.C. 9053) is amended--
(A) in the section heading, by striking
``establishment of margin protection'' and inserting
``dairy risk management'';
(B) by striking ``Not later than September 1, 2014,
the Secretary shall establish and administer a margin
protection program'' and inserting ``The Secretary
shall continue to administer a dairy risk management
program''; and
(C) by striking ``margin protection payment'' both
places it appears and inserting ``dairy risk management
payment''.
(5) Participation.--Section 1404 of the Agricultural Act of
2014 (7 U.S.C. 9054) is amended--
(A) in the section heading, by striking ``margin
protection'';
(B) in subsection (a), by striking ``margin
protection program to receive margin protection
payments'' and inserting ``dairy risk management
program to receive dairy risk management payments'';
and
(C) in subsections (b) and (c), by striking
``margin protection'' each place it appears.
(6) Production history.--Section 1405 of the Agricultural
Act of 2014 (7 U.S.C. 9055) is amended--
(A) in subsection (a)(1)--
(i) by striking ``margin protection
program'' the first place it appears and
inserting ``dairy risk management program'';
and
(ii) by striking ``margin protection'' the
second place it appears; and
(B) in subsection (c), by striking ``margin
protection''.
(7) Payments.--Section 1406 of the Agricultural Act of 2014
(7 U.S.C. 9056) is amended--
(A) in the section heading, by striking ``margin
protection'' and inserting ``dairy risk management'';
(B) by striking ``margin protection'' each place it
appears and inserting ``dairy risk management''; and
(C) in the heading of subsection (c), by striking
``Margin Protection''.
(8) Premiums.--Section 1407 of the Agricultural Act of 2014
(7 U.S.C. 9057) is amended--
(A) in the section heading, by striking ``margin
protection'' and inserting ``dairy risk management'';
(B) in subsection (a), by striking ``margin
protection program'' and inserting ``dairy risk
management program''; and
(C) in subsection (e), by striking ``margin
protection'' both places it appears.
(9) Penalties.--Section 1408 of the Agricultural Act of
2014 (7 U.S.C. 9058) is amended by striking ``margin
protection'' both places it appears and inserting ``dairy risk
management''.
(10) Administration and enforcement.--Section 1410 of the
Agricultural Act of 2014 (7 U.S.C. 9060) is amended by striking
``margin protection'' each place it appears and inserting
``dairy risk management''.
(j) Effective Date.--The amendments made by this section shall take
effect 60 days after the date of the enactment of this Act.
(k) Duration.--Section 1409 of the Agricultural Act of 2014 (7
U.S.C. 9059) is amended--
(1) by striking ``margin protection'' and inserting ``dairy
risk management''; and
(2) by striking ``2018'' and inserting ``2023''.
SEC. 3. CLASS I SKIM MILK PRICE.
(a) Class I Skim Milk Price.--Section 8c(5)(A) of the Agricultural
Adjustment Act (7 U.S.C. 608c(5)(A)), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937, is amended by striking
the third and fourth sentences, including the table, and inserting the
following new sentence: ``Throughout the 2-year period beginning on the
effective date of this sentence (and subsequent to such 2-year period
unless modified by amendment to the order involved), for purposes of
determining prices for milk of the highest use classification, the
Class I skim milk price per hundredweight specified in section
1000.50(b) of title 7, Code of Federal Regulations (or successor
regulation), shall be the sum of the adjusted Class I differential
specified in section 1000.52 of such title 7, plus the adjustment to
Class I prices specified in sections 1005.51(b), 1006.51(b), and
1007.51(b) of such title 7 (or successor regulation), plus the simple
average of the advanced pricing factors computed in sections
1000.50(q)(1) and 1000.50(q)(2) of such title 7 (or successor
regulation), plus $0.74.''.
(b) Effective Date and Implementation.--
(1) Effective date.--The amendment made by subsection (a)
shall take effect on the first day of the first month beginning
more than 120 days after the date of the enactment of this Act.
(2) Implementation.--Implementation of the amendment made
by subsection (a) is not subject to any of the following:
(A) The notice and comment provisions of section
553 of title 5, United States Code.
(B) The notice and hearing requirements of
paragraphs (3) and (4) of section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted
with amendments by the Agricultural Marketing Agreement
Act of 1937.
(C) The order amendment requirements of section
8c(17) of such Act (7 U.S.C. 608c(17)).
(D) A referendum under section 8c(19) of such Act
(7 U.S.C. 608c(19)).
SEC. 4. EXTENSION OF DAIRY FORWARD PRICING PROGRAM.
Section 1502(e) of the Food, Conservation, and Energy Act of 2008
(7 U.S.C. 8772(e)) is amended--
(1) in paragraph (1), by striking ``2018'' and inserting
``2023''; and
(2) in paragraph (2), by striking ``2021'' and inserting
``2026''.
SEC. 5. EXTENSION OF DAIRY INDEMNITY PROGRAM.
Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by
striking ``2018'' and inserting ``2023''.
SEC. 6. EXTENSION OF DAIRY PROMOTION AND RESEARCH PROGRAM.
Section 113(e)(2) of the Dairy Production Stabilization Act of 1983
(7 U.S.C. 4504(e)(2)) is amended by striking ``2018'' and inserting
``2023''.
SEC. 7. REPEAL OF DAIRY PRODUCT DONATION PROGRAM.
Section 1431 of the Agricultural Act of 2014 (7 U.S.C. 9071) is
repealed.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Agriculture.
Referred to the Subcommittee on General Farm Commodities and Risk Management.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line