,i #aacth ,,congress #ast ,session ,h4 ,r4 #agda ,,in ,,the ,,house ,,of ,,representatives ,april #be1 #bjac ,mr4 ,goodlatte 7for himself and ,mr4 ,david ,scott of ,georgia7 introduced the following bill2 which was referred to the ,committee on ,agriculture ,a ,,bill ,to establish a dairy producer margin insurance program for the purpose of protecting dairy producer income by paying participating dairy producers margin insurance payments when actual dairy producer margins are less than a threshold level1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,dairy ,freedom ,act4 #b4 ,dairy producer margin insurance program ,subtitle ,e of title ,i of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hgga et seq47 is amended by adding at the end the following new section3 #aeaa4 ,dairy producer margin insurance program 7a7 ,definitions ,in this section3 7#a7 ,actual dairy producer margin ,the term actual dairy producer margin means the difference between the all-milk price and the average feed cost1 as calculated under subsection 7b77#b74 7#b7 ,all-milk price ,the term all-milk price means the average price received1 per hundredweight of milk1 by dairy producers for all milk sold to plants and dealers in the ,united ,states1 as reported by the ,national ,agricultural ,statistics ,service4 7#c7 ,average feed cost ,the term average feed cost means the average cost of feed used by a dairy operation to produce a hundredweight of milk1 determined under subsection 7b77#a7 using the sum of the following3 7,a7 ,the product determined by multiplying-- 7i7 #a4jgbh2 by 7ii7 the price of corn per bushel4 7,b7 ,the product determined by multiplying-- 7i7 #j4jjgce2 by 7ii7 the price of soybean meal per ton4 7,c7 ,the product determined by multiplying-- 7i7 #j4jacg2 by 7ii7 the price of alfalfa hay per ton4 7#d7 ,consecutive #b-month period ,the term consecutive #b-month period refers to the #b-month period consisting of the months of ,january and ,february1 ,march and ,april1 ,may and ,june1 ,july and ,august1 ,september and ,october1 or ,november and ,december1 respectively4 7#e7 ,dairy producer ,the term dairy producer means an individual or entity that directly or indirectly 7as determined by the ,secretary7-- 7,a7 shares in the risk of producing milk2 and 7,b7 makes contributions 7including land1 labor1 management1 equipment1 or capital7 to the dairy operation of the individual or entity that are at least commensurate with the share of the individual or entity of the proceeds of the operation4 7#f7 ,margin insurance program ,the term margin insurance program means the dairy producer margin insurance program required by this section4 7#g7 ,participating dairy producer ,the term participating dairy producer means a dairy producer that registers under subsection 7d77#b7 to participate in the margin insurance program4 7#h7 ,production history ,the term production history means the quantity of annual milk marketings determined for a dairy producer under subsection 7e77#a74 7#i7 ,united ,states ,the term ,united ,states1 in a geographical sense1 means the #ej ,states4 7b7 ,calculation of average feed cost and actual dairy producer margins 7#a7 ,calculation of average feed cost ,the ,secretary shall calculate the national average feed cost for each month using the following data3 7,a7 ,the price of corn for a month shall be the price received during that month by agricultural producers in the ,united ,states for corn1 as reported in the monthly ,agriculture ,prices report by the ,secretary4 7,b7 ,the price of soybean meal for a month shall be the central ,illinois price for soybean meal1 as reported in the ,market ,news--,monthly ,soybean ,meal ,price ,report by the ,secretary4 7,c7 ,the price of alfalfa hay for a month shall be the price received during that month by agricultural producers in the ,united ,states for alfalfa hay1 as reported in the monthly ,agriculture ,prices report by the ,secretary4 7#b7 ,calculation of actual dairy producer margins ,the ,secretary shall calculate the actual dairy producer margin for each consecutive #b-month period by subtracting-- 7,a7 the average feed cost for that consecutive #b-month period1 determined in accordance with paragraph 7#a72 from 7,b7 the all-milk price for that consecutive #b-month period4 7c7 ,establishment of dairy producer margin insurance program ,the ,secretary shall establish and administer a dairy producer margin insurance program for the purpose of protecting dairy producer income by paying participating dairy producers margin insurance payments when actual dairy producer margins are less than the threshold levels for the payments4 7d7 ,eligibility and registration of dairy producers for margin insurance program 7#a7 ,eligibility ,all dairy producers in the ,united ,states shall be eligible to participate in the margin insurance program4 7#b7 ,registration process 7,a7 ,registration 7i7 ,in general ,the ,secretary shall register all interested dairy producers in the margin insurance program4 7ii7 ,manner and form ,the ,secretary shall specify the manner and form by which a dairy producer shall register for the margin insurance program4 7,b7 ,treatment of multi-producer operations ,if a dairy operation consists of more than #a dairy producer1 all of the dairy producers of the operation shall be treated as a single dairy producer for purposes of-- 7i7 purchasing margin insurance2 and 7ii7 payment of producer premiums under subsection 7f77#d74 7,c7 ,treatment of producers with multiple dairy operations ,if a dairy producer operates #b or more dairy operations1 each dairy operation of the producer shall require a separate registration to participate and purchase margin insurance4 7#c7 ,time for registration 7,a7 ,existing dairy producers ,during the #a-year period beginning on the date of enactment of this section1 a dairy producer that is actively engaged in a dairy operation as of that date may register with the ,secretary to participate in the margin insurance program4 7,b7 ,new ,entrants ,a dairy producer that has no existing interest in a dairy operation as of the date of enactment of this section1 but that1 after that date1 establishes a new dairy operation1 may register with the ,secretary during the #ahj-;day period beginning on the date on which the dairy operation first markets milk commercially to participate in the margin insurance program4 7#d7 ,retroactivity 7,a7 ,notice of availability of retroactive protection ,not later than #cj days after the effective date of this section1 the ,secretary shall publish a notice in the ,federal ,register to inform dairy producers of the availability of retroactive margin insurance1 subject to the condition that interested producers must file a notice of intent 7in such form and manner as the ,secretary specifies in the ,federal ,register notice7 to participate in the margin insurance program4 7,b7 ,retroactive margin insurance 7i7 ,availability ,if a dairy producer files a notice of intent under subparagraph 7,a7 to participate in the margin insurance program before the initiation of the sign-up period for the margin insurance program and subsequently signs up for the margin insurance program1 the producer shall receive margin insurance retroactive to the effective date of this section4 7ii7 ,duration ,retroactive margin insurance under this paragraph for a dairy producer shall apply from the effective date of this section until the date on which the producer signs up for the margin insurance program4 7,c7 ,notice of intent and obligation to participate ,in no way does filing a notice of intent under this paragraph obligate a dairy producer to sign up for the margin insurance program once the program rules are final1 but if a producer does file a notice of intent and subsequently signs up for the margin insurance program1 that dairy producer is obligated to pay premiums for any retroactive margin insurance selected in the notice of intent4 7#e7 ,reconstitution ,the ,secretary shall ensure that a dairy producer does not reconstitute a dairy operation for the sole purpose of purchasing margin insurance4 7e7 ,production history of participating dairy producers 7#a7 ,determination of production history 7,a7 ,in general ,the ,secretary shall determine the production history of the dairy operation of each participating dairy producer in the margin insurance program4 7,b7 ,calculation ,except as provided in subparagraph 7,c71 the production history of a participating dairy producer shall be equal to the highest annual milk marketings of the dairy producer during any #a of the #c calendar years immediately preceding the registration of the dairy producer for participation in the margin insurance program4 7,c7 ,new producers ,if a dairy producer has been in operation for less than #a year1 the ,secretary shall determine the production history of the dairy producer by extrapolating the actual milk marketings for the months that the dairy producer has been in operation to a yearly amount4 7#b7 ,required information ,a participating dairy producer shall provide all information that the ,secretary may require in order to establish the production history of the dairy operation of the dairy producer4 7#c7 ,transfer of production history 7,a7 ,transfer by sale 7i7 ,request for transfer ,if an existing dairy producer sells an entire dairy operation to another party1 the seller and purchaser may jointly request that the ,secretary transfer to the purchaser the interest of the seller in the production history of the dairy operation4 7ii7 ,transfer ,if the ,secretary determines that the seller has sold the entire dairy operation to the purchaser1 the ,secretary shall approve the transfer and1 thereafter1 the seller shall have no interest in the production history of the sold dairy operation4 7,b7 ,transfer by ,lease 7i7 ,request for transfer ,if an existing dairy producer leases an entire dairy operation to another party1 the lessor and lessee may jointly request that the ,secretary transfer to the lessee for the duration of the term of the lease the interest of the lessor in the production history of the dairy operation4 7ii7 ,transfer ,if the ,secretary determines that the lessor has leased the entire dairy operation to the lessee1 the ,secretary shall approve the transfer and1 thereafter1 the lessor shall have no interest for the duration of the term of the lease in the production history of the leased dairy operation4 7,c7 ,coverage level ,a purchaser or lessee to whom the ,secretary transfers a production history under this paragraph may not obtain a different level of margin insurance coverage held by the seller or lessor from whom the transfer was obtained4 7,d7 ,new entrants ,the ,secretary may not transfer the production history determined for a dairy producer described in subsection 7d77#c77;,b7 to another person4 7#d7 ,movement and transfer of production history 7,a7 ,movement and transfer authorized ,subject to subparagraph 7,b71 if a dairy producer moves from #a location to another location1 the dairy producer may maintain the production history associated with the operation4 7,b7 ,notification requirement ,a dairy producer shall notify the ,secretary of any move of a dairy operation under subparagraph 7,a74 7,c7 ,subsequent occupation of vacated location ,a party subsequently occupying a dairy operation location vacated as described in subparagraph 7,a7 shall have no interest in the production history previously associated with the operation at that location4 7f7 ,margin insurance 7#a7 ,in general ,at the time of the registration of a dairy producer in the margin insurance program under subsection 7d7 and annually thereafter during the duration of the margin insurance program1 an eligible dairy producer may purchase margin insurance4 7#b7 ,selection of payment threshold ,a participating dairy producer purchasing margin insurance shall elect a coverage level in any increment of #j4ej1 with a minimum of #d4jj and a maximum of #h4jj4 7#c7 ,selection of coverage percentage ,a participating dairy producer purchasing margin insurance shall elect a percentage of coverage1 equal to not more than #hj percent nor less than #be percent1 of the production history of the dairy operation of the participating dairy producer4 7#d7 ,producer ,premiums 7,a7 ,premiums required ,a participating dairy producer that purchases margin insurance shall pay an annual premium equal to the product obtained by multiplying-- 7i7 the percentage selected by the dairy producer under paragraph 7#c72 7ii7 the production history applicable to the dairy producer2 and 7iii7 the premium per hundredweight of milk1 as specified in the applicable table under paragraph 7,b7 or 7,c74 7,b7 ,premium per hundredweight for first #d million pounds of production ,for the first #d1jjj1jjj pounds of milk marketings included in the annual production history of a participating dairy operation1 the premium per hundredweight corresponding to each coverage level specified in the following table is as follows3 ,coverage ,level,premium per ,cwt4 #d4jjj4jjj #d4ejj4ja #e4jjj4jb #e4ejj4jce #f4jjj4jde #f4ejj4ji #g4jjj4ah #g4ejj4fj #h4jjj4ie4 7,c7 ,premium per hundredweight for production in excess of #d million pounds ,for milk marketings in excess of #d1jjj1jjj pounds included in the annual production history of a participating dairy operation1 the premium per hundredweight corresponding to each coverage level is as follows3 ,coverage ,level,premium per ,cwt4 #d4jjj4jcj #d4ejj4jde #e4jjj4jff #e4ejj4aa #f4jjj4ahe #f4ejj4bi #g4jjj4ch #g4ejj4hc #h4jja4jf4 7,d7 ,time for payment 7i7 ,first year ,as soon as practicable after a dairy producer registers to participate in the margin insurance program and purchases margin insurance1 the dairy producer shall pay the premium determined under subparagraph 7,a7 for the dairy producer for the first calendar year of the margin insurance4 7ii7 ,subsequent years 7,i7 ,in general ,when the dairy producer first purchases margin insurance1 the dairy producer shall also elect the method by which the dairy producer will pay premiums under this subsection for subsequent years in accordance with #a of the schedules described in subclauses 7,,ii7 and 7,,iii74 7,,ii7 ,single annual payment ,the participating dairy producer may elect to pay #ajj percent of the annual premium determined under subparagraph 7,a7 for the dairy producer for a calendar year by not later than ,january #ae of the calendar year4 7,,iii7 ,semi-annual payments ,the participating dairy producer may elect to pay-- 7aa7 #ej percent of the annual premium determined under subparagraph 7,a7 for the dairy producer for a calendar year by not later than ,january #ae of the calendar year2 and 7bb7 the remaining #ej percent of the premium by not later than ,june #ae of the calendar year4 7#e7 ,producer premium obligations 7,a7 ,pro-ration of first year premium ,a participating dairy producer that purchases margin insurance after initial registration in the margin insurance program shall pay a pro-rated premium for the first calendar year based on the date on which the producer purchases the coverage4 7,b7 ,subsequent premiums ,except as provided in subparagraph 7,a71 the annual premium for a participating dairy producer shall be determined under paragraph 7#d7 for each year in which the margin insurance program is in effect4 7,c7 ,legal obligation 7i7 ,in general ,except as provided in clauses 7ii7 and 7iii71 a participating dairy producer that purchases margin insurance shall be legally obligated to pay the applicable premiums for the entire period of the margin insurance program 7as provided in the payment schedule elected under paragraph 7#d77;,b771 and may not opt out of the margin insurance program4 7ii7 ,death ,if the dairy producer dies1 the estate of the deceased may cancel the margin insurance and shall not be responsible for any further premium payments4 7iii7 ,retirement ,if the dairy producer retires1 the producer may request that ,secretary cancel the margin insurance if the producer has terminated the dairy operation entirely and certifies under oath that the producer will not be actively engaged in any dairy operation for at least the next #g years4 7#f7 ,payment threshold ,a participating dairy producer with margin insurance shall receive a margin insurance payment whenever the average actual dairy producer margin for a consecutive #b-month period is less than the coverage level threshold selected by the dairy producer under paragraph 7#b74 7#g7 ,margin insurance payments 7,a7 ,in general ,the ,secretary shall make a margin insurance protection payment to each participating dairy producer whenever the average actual dairy producer margin for a consecutive #b-month period is less than the coverage level threshold selected by the dairy producer under paragraph 7#b74 7,b7 ,amount of payment ,the margin insurance payment for the dairy operation of a participating dairy producer shall be determined as follows3 7i7 ,the ,secretary shall calculate the difference between-- 7,i7 the coverage level threshold selected by the dairy producer under paragraph 7#b72 and 7,,ii7 the average actual dairy producer margin for the consecutive #b-month period4 7ii7 ,the amount determined under clause 7i7 shall be multiplied by-- 7,i7 the percentage selected by the dairy producer under paragraph 7#c72 and 7,,ii7 the lesser of-- 7aa7 the quotient obtained by dividing-- 7,,aa7 the production history applicable to the producer under subsection 7e77#a72 by 7,,bb7 #f2 and 7bb7 the actual quantity of milk marketed by the dairy operation of the dairy producer during the consecutive #b-month period4 7g7 ,effect of failure ,to pay premiums 7#a7 ,loss of benefits ,a participating dairy producer that is in arrears on premium payments for margin insurance-- 7,a7 remains legally obligated to pay the premiums2 and 7,b7 may not receive margin insurance until the premiums are fully paid4 7#b7 ,enforcement ,the ,secretary may take such action as is necessary to collect premium payments for margin insurance4 7h7 ,duration ,the ,secretary shall conduct the margin insurance program during the period beginning on ,october #a1 #bjad1 and ending on ,september #cj1 #bjah4 4 #c4 ,repeal or reauthorization of other dairy-related provisions 7a7 ,repeal of dairy product price support program ,section #aeja of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hgga7 is repealed4 7b7 ,repeal of milk income loss contract program ,section #aejf of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hggc7 is repealed4 7c7 ,repeal dairy export incentive program ,section #aec of the ,food ,security ,act of #aihe 7#ae ,u4,s4,c4 #gac;a-#ad7 is repealed4 7d7 ,conforming amendments ,section #ijb7b7 of the ,trade ,sanctions ,reform and ,export ,enhancement ,act of #bjjj 7#bb ,u4,s4,c4 #gbja7b77 is amended-- 7#a7 by striking subparagraph 7,d72 and 7#b7 by redesignating subparagraphs 7,e7 and 7,f7 as subparagraphs 7,d7 and 7,e71 respectively4 7e7 ,effective date ,the repeals under subsections 7a71 7b71 and 7c7 and the amendments made by subsection 7d7 shall take effect on ,october #a1 #bjac4