,i #aac? ,,congress #a/ ,session ,h4 ,r4 #agda ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,april #be1 #bjac ,mr4 ,goodlatte 7= himself & ,mr4 ,david ,scott ( ,georgia7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,agriculture ,a ,,bill ,to e/abli% a dairy produc] m>g9 insurance program = ! purpose ( protect+ dairy produc] income by pay+ p>ticipat+ dairy produc]s m>g9 insurance paym5ts :5 actual dairy produc] m>g9s are less ?an a ?re%old level1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,dairy ,fre$om ,act4 #b4 ,dairy produc] m>g9 insurance program ,subtitle ,e ( title ,i ( ! ,food1 ,cons]vation1 & ,en]gy ,act ( #bjjh 7#g ,u4,s4,c4 #hgga et seq47 is am5d$ by add+ at ! end ! foll[+ new section3 #aeaa4 ,dairy produc] m>g9 insurance program 7a7 ,def9itions ,9 ?is section3 7#a7 ,actual dairy produc] m>g9 ,! t]m actual dairy produc] m>g9 means ! diff]5ce betwe5 ! all-milk price & ! av]age fe$ co/1 z calculat$ "u subsection 7b77#b74 7#b7 ,all-milk price ,! t]m all-milk price means ! av]age price receiv$1 p] hundr$weight ( milk1 by dairy produc]s = all milk sold to plants & deal]s 9 ! ,unit$ ,/ates1 z report$ by ! ,national ,agricultural ,/ati/ics ,s]vice4 7#c7 ,av]age fe$ co/ ,! t]m av]age fe$ co/ means ! av]age co/ ( fe$ us$ by a dairy op]ation to produce a hundr$weight ( milk1 det]m9$ "u subsection 7b77#a7 us+ ! sum ( ! foll[+3 7,a7 ,! product det]m9$ by multiply+-- 7i7 #a4jgbh2 by 7ii7 ! price ( corn p] bu%el4 7,b7 ,! product det]m9$ by multiply+-- 7i7 #j4jjgce2 by 7ii7 ! price ( soybean meal p] ton4 7,c7 ,! product det]m9$ by multiply+-- 7i7 #j4jacg2 by 7ii7 ! price ( alfalfa hay p] ton4 7#d7 ,consecutive #b-mon? p]iod ,! t]m consecutive #b-mon? p]iod ref]s to ! #b-mon? p]iod consi/+ ( ! mon?s ( ,janu>y & ,febru>y1 ,m>* & ,april1 ,may & ,june1 ,july & ,augu/1 ,septemb] & ,octob]1 or ,novemb] & ,decemb]1 respectively4 7#e7 ,dairy produc] ,! t]m dairy produc] means an individual or entity t directly or indirectly 7z det]m9$ by ! ,secret>y7-- 7,a7 %>es 9 ! risk ( produc+ milk2 & 7,b7 makes contributions 7includ+ l&1 labor1 managem5t1 equipm5t1 or capital7 to ! dairy op]ation ( ! individual or entity t are at lea/ comm5surate ) ! %>e ( ! individual or entity ( ! proce$s ( ! op]ation4 7#f7 ,m>g9 insurance program ,! t]m m>g9 insurance program means ! dairy produc] m>g9 insurance program requir$ by ?is section4 7#g7 ,p>ticipat+ dairy produc] ,! t]m p>ticipat+ dairy produc] means a dairy produc] t regi/]s "u subsection 7d77#b7 to p>ticipate 9 ! m>g9 insurance program4 7#h7 ,production hi/ory ,! t]m production hi/ory means ! quantity ( annual milk m>ket+s det]m9$ = a dairy produc] "u subsection 7e77#a74 7#i7 ,unit$ ,/ates ,! t]m ,unit$ ,/ates1 9 a geographical s5se1 means ! #ej ,/ates4 7b7 ,calculation ( av]age fe$ co/ & actual dairy produc] m>g9s 7#a7 ,calculation ( av]age fe$ co/ ,! ,secret>y %all calculate ! national av]age fe$ co/ = ea* mon? us+ ! foll[+ data3 7,a7 ,! price ( corn = a mon? %all be ! price receiv$ dur+ t mon? by agricultural produc]s 9 ! ,unit$ ,/ates = corn1 z report$ 9 ! mon?ly ,agriculture ,prices report by ! ,secret>y4 7,b7 ,! price ( soybean meal = a mon? %all be ! c5tral ,ill9ois price = soybean meal1 z report$ 9 ! ,m>ket ,news--,mon?ly ,soybean ,meal ,price ,report by ! ,secret>y4 7,c7 ,! price ( alfalfa hay = a mon? %all be ! price receiv$ dur+ t mon? by agricultural produc]s 9 ! ,unit$ ,/ates = alfalfa hay1 z report$ 9 ! mon?ly ,agriculture ,prices report by ! ,secret>y4 7#b7 ,calculation ( actual dairy produc] m>g9s ,! ,secret>y %all calculate ! actual dairy produc] m>g9 = ea* consecutive #b-mon? p]iod by subtract+-- 7,a7 ! av]age fe$ co/ = t consecutive #b-mon? p]iod1 det]m9$ 9 accordance ) p>agraph 7#a72 f 7,b7 ! all-milk price = t consecutive #b-mon? p]iod4 7c7 ,e/abli%m5t ( dairy produc] m>g9 insurance program ,! ,secret>y %all e/abli% & adm9i/] a dairy produc] m>g9 insurance program = ! purpose ( protect+ dairy produc] income by pay+ p>ticipat+ dairy produc]s m>g9 insurance paym5ts :5 actual dairy produc] m>g9s are less ?an ! ?re%old levels = ! paym5ts4 7d7 ,eligibility & regi/ration ( dairy produc]s = m>g9 insurance program 7#a7 ,eligibility ,all dairy produc]s 9 ! ,unit$ ,/ates %all be eligible to p>ticipate 9 ! m>g9 insurance program4 7#b7 ,regi/ration process 7,a7 ,regi/ration 7i7 ,9 g5]al ,! ,secret>y %all regi/] all int]e/$ dairy produc]s 9 ! m>g9 insurance program4 7ii7 ,mann] & =m ,! ,secret>y %all specify ! mann] & =m by :i* a dairy produc] %all regi/] = ! m>g9 insurance program4 7,b7 ,treatm5t ( multi-produc] op]ations ,if a dairy op]ation consi/s ( m ?an #a dairy produc]1 all ( ! dairy produc]s ( ! op]ation %all be treat$ z a s+le dairy produc] = purposes (-- 7i7 pur*as+ m>g9 insurance2 & 7ii7 paym5t ( produc] premiums "u subsection 7f77#d74 7,c7 ,treatm5t ( produc]s ) multiple dairy op]ations ,if a dairy produc] op]ates #b or m dairy op]ations1 ea* dairy op]ation ( ! produc] %all require a sep>ate regi/ration to p>ticipate & pur*ase m>g9 insurance4 7#c7 ,"t = regi/ration 7,a7 ,exi/+ dairy produc]s ,dur+ ! #a-ye> p]iod beg9n+ on ! date ( enactm5t ( ?is section1 a dairy produc] t is actively engag$ 9 a dairy op]ation z ( t date may regi/] ) ! ,secret>y to p>ticipate 9 ! m>g9 insurance program4 7,b7 ,new ,entrants ,a dairy produc] t has no exi/+ int]e/ 9 a dairy op]ation z ( ! date ( enactm5t ( ?is section1 b t1 aft] t date1 e/abli%es a new dairy op]ation1 may regi/] ) ! ,secret>y dur+ ! #ahj-;day p]iod beg9n+ on ! date on :i* ! dairy op]ation fir/ m>kets milk comm]cially to p>ticipate 9 ! m>g9 insurance program4 7#d7 ,retroactivity 7,a7 ,notice ( availability ( retroactive protection ,n lat] ?an #cj days aft] ! effective date ( ?is section1 ! ,secret>y %all publi% a notice 9 ! ,f$]al ,regi/] to in=m dairy produc]s ( ! availability ( retroactive m>g9 insurance1 subject to ! condition t int]e/$ produc]s mu/ file a notice ( int5t 79 su* =m & mann] z ! ,secret>y specifies 9 ! ,f$]al ,regi/] notice7 to p>ticipate 9 ! m>g9 insurance program4 7,b7 ,retroactive m>g9 insurance 7i7 ,availability ,if a dairy produc] files a notice ( int5t "u subp>agraph 7,a7 to p>ticipate 9 ! m>g9 insurance program be=e ! initiation ( ! sign-up p]iod = ! m>g9 insurance program & subsequ5tly signs up = ! m>g9 insurance program1 ! produc] %all receive m>g9 insurance retroactive to ! effective date ( ?is section4 7ii7 ,duration ,retroactive m>g9 insurance "u ?is p>agraph = a dairy produc] %all apply f ! effective date ( ?is section until ! date on :i* ! produc] signs up = ! m>g9 insurance program4 7,c7 ,notice ( int5t & obligation to p>ticipate ,9 no way does fil+ a notice ( int5t "u ?is p>agraph obligate a dairy produc] to sign up = ! m>g9 insurance program once ! program rules are f9al1 b if a produc] does file a notice ( int5t & subsequ5tly signs up = ! m>g9 insurance program1 t dairy produc] is obligat$ to pay premiums = any retroactive m>g9 insurance select$ 9 ! notice ( int5t4 7#e7 ,recon/itution ,! ,secret>y %all ensure t a dairy produc] does n recon/itute a dairy op]ation = ! sole purpose ( pur*as+ m>g9 insurance4 7e7 ,production hi/ory ( p>ticipat+ dairy produc]s 7#a7 ,det]m9ation ( production hi/ory 7,a7 ,9 g5]al ,! ,secret>y %all det]m9e ! production hi/ory ( ! dairy op]ation ( ea* p>ticipat+ dairy produc] 9 ! m>g9 insurance program4 7,b7 ,calculation ,except z provid$ 9 subp>agraph 7,c71 ! production hi/ory ( a p>ticipat+ dairy produc] %all be equal to ! highe/ annual milk m>ket+s ( ! dairy produc] dur+ any #a ( ! #c cal5d> ye>s imm$iately prec$+ ! regi/ration ( ! dairy produc] = p>ticipation 9 ! m>g9 insurance program4 7,c7 ,new produc]s ,if a dairy produc] has be5 9 op]ation = less ?an #a ye>1 ! ,secret>y %all det]m9e ! production hi/ory ( ! dairy produc] by extrapolat+ ! actual milk m>ket+s = ! mon?s t ! dairy produc] has be5 9 op]ation to a ye>ly am\nt4 7#b7 ,requir$ in=mation ,a p>ticipat+ dairy produc] %all provide all in=mation t ! ,secret>y may require 9 ord] to e/abli% ! production hi/ory ( ! dairy op]ation ( ! dairy produc]4 7#c7 ,transf] ( production hi/ory 7,a7 ,transf] by sale 7i7 ,reque/ = transf] ,if an exi/+ dairy produc] sells an entire dairy op]ation to ano!r p>ty1 ! sell] & pur*as] may jo9tly reque/ t ! ,secret>y transf] to ! pur*as] ! int]e/ ( ! sell] 9 ! production hi/ory ( ! dairy op]ation4 7ii7 ,transf] ,if ! ,secret>y det]m9es t ! sell] has sold ! entire dairy op]ation to ! pur*as]1 ! ,secret>y %all approve ! transf] &1 !reaft]1 ! sell] %all h no int]e/ 9 ! production hi/ory ( ! sold dairy op]ation4 7,b7 ,transf] by ,lease 7i7 ,reque/ = transf] ,if an exi/+ dairy produc] leases an entire dairy op]ation to ano!r p>ty1 ! lessor & lessee may jo9tly reque/ t ! ,secret>y transf] to ! lessee = ! duration ( ! t]m ( ! lease ! int]e/ ( ! lessor 9 ! production hi/ory ( ! dairy op]ation4 7ii7 ,transf] ,if ! ,secret>y det]m9es t ! lessor has leas$ ! entire dairy op]ation to ! lessee1 ! ,secret>y %all approve ! transf] &1 !reaft]1 ! lessor %all h no int]e/ = ! duration ( ! t]m ( ! lease 9 ! production hi/ory ( ! leas$ dairy op]ation4 7,c7 ,cov]age level ,a pur*as] or lessee to :om ! ,secret>y transf]s a production hi/ory "u ?is p>agraph may n obta9 a diff]5t level ( m>g9 insurance cov]age held by ! sell] or lessor f :om ! transf] 0 obta9$4 7,d7 ,new entrants ,! ,secret>y may n transf] ! production hi/ory det]m9$ = a dairy produc] describ$ 9 subsection 7d77#c77;,b7 to ano!r p]son4 7#d7 ,movem5t & transf] ( production hi/ory 7,a7 ,movem5t & transf] au?oriz$ ,subject to subp>agraph 7,b71 if a dairy produc] moves f #a location to ano!r location1 ! dairy produc] may ma9ta9 ! production hi/ory associat$ ) ! op]ation4 7,b7 ,notification requirem5t ,a dairy produc] %all notify ! ,secret>y ( any move ( a dairy op]ation "u subp>agraph 7,a74 7,c7 ,subsequ5t occupation ( vacat$ location ,a p>ty subsequ5tly occupy+ a dairy op]ation location vacat$ z describ$ 9 subp>agraph 7,a7 %all h no int]e/ 9 ! production hi/ory previ\sly associat$ ) ! op]ation at t location4 7f7 ,m>g9 insurance 7#a7 ,9 g5]al ,at ! "t ( ! regi/ration ( a dairy produc] 9 ! m>g9 insurance program "u subsection 7d7 & annually !reaft] dur+ ! duration ( ! m>g9 insurance program1 an eligible dairy produc] may pur*ase m>g9 insurance4 7#b7 ,selection ( paym5t ?re%old ,a p>ticipat+ dairy produc] pur*as+ m>g9 insurance %all elect a cov]age level 9 any increm5t ( #j4ej1 ) a m9imum ( #d4jj & a maximum ( #h4jj4 7#c7 ,selection ( cov]age p]c5tage ,a p>ticipat+ dairy produc] pur*as+ m>g9 insurance %all elect a p]c5tage ( cov]age1 equal to n m ?an #hj p]c5t nor less ?an #be p]c5t1 ( ! production hi/ory ( ! dairy op]ation ( ! p>ticipat+ dairy produc]4 7#d7 ,produc] ,premiums 7,a7 ,premiums requir$ ,a p>ticipat+ dairy produc] t pur*ases m>g9 insurance %all pay an annual premium equal to ! product obta9$ by multiply+-- 7i7 ! p]c5tage select$ by ! dairy produc] "u p>agraph 7#c72 7ii7 ! production hi/ory applicable to ! dairy produc]2 & 7iii7 ! premium p] hundr$weight ( milk1 z specifi$ 9 ! applicable table "u p>agraph 7,b7 or 7,c74 7,b7 ,premium p] hundr$weight = fir/ #d million p\nds ( production ,= ! fir/ #d1jjj1jjj p\nds ( milk m>ket+s includ$ 9 ! annual production hi/ory ( a p>ticipat+ dairy op]ation1 ! premium p] hundr$weight correspond+ to ea* cov]age level specifi$ 9 ! foll[+ table is z foll[s3 ,cov]age ,level,premium p] ,cwt4 #d4jjj4jjj #d4ejj4ja #e4jjj4jb #e4ejj4jce #f4jjj4jde #f4ejj4ji #g4jjj4ah #g4ejj4fj #h4jjj4ie4 7,c7 ,premium p] hundr$weight = production 9 excess ( #d million p\nds ,= milk m>ket+s 9 excess ( #d1jjj1jjj p\nds includ$ 9 ! annual production hi/ory ( a p>ticipat+ dairy op]ation1 ! premium p] hundr$weight correspond+ to ea* cov]age level is z foll[s3 ,cov]age ,level,premium p] ,cwt4 #d4jjj4jcj #d4ejj4jde #e4jjj4jff #e4ejj4aa #f4jjj4ahe #f4ejj4bi #g4jjj4ch #g4ejj4hc #h4jja4jf4 7,d7 ,"t = paym5t 7i7 ,fir/ ye> ,z soon z practicable aft] a dairy produc] regi/]s to p>ticipate 9 ! m>g9 insurance program & pur*ases m>g9 insurance1 ! dairy produc] %all pay ! premium det]m9$ "u subp>agraph 7,a7 = ! dairy produc] = ! fir/ cal5d> ye> ( ! m>g9 insurance4 7ii7 ,subsequ5t ye>s 7,i7 ,9 g5]al ,:5 ! dairy produc] fir/ pur*ases m>g9 insurance1 ! dairy produc] %all also elect ! me?od by :i* ! dairy produc] w pay premiums "u ?is subsection = subsequ5t ye>s 9 accordance ) #a ( ! s*$ules describ$ 9 subclauses 7,,ii7 & 7,,iii74 7,,ii7 ,s+le annual paym5t ,! p>ticipat+ dairy produc] may elect to pay #ajj p]c5t ( ! annual premium det]m9$ "u subp>agraph 7,a7 = ! dairy produc] = a cal5d> ye> by n lat] ?an ,janu>y #ae ( ! cal5d> ye>4 7,,iii7 ,semi-annual paym5ts ,! p>ticipat+ dairy produc] may elect to pay-- 7aa7 #ej p]c5t ( ! annual premium det]m9$ "u subp>agraph 7,a7 = ! dairy produc] = a cal5d> ye> by n lat] ?an ,janu>y #ae ( ! cal5d> ye>2 & 7bb7 ! rema9+ #ej p]c5t ( ! premium by n lat] ?an ,june #ae ( ! cal5d> ye>4 7#e7 ,produc] premium obligations 7,a7 ,pro-ration ( fir/ ye> premium ,a p>ticipat+ dairy produc] t pur*ases m>g9 insurance aft] initial regi/ration 9 ! m>g9 insurance program %all pay a pro-rat$ premium = ! fir/ cal5d> ye> bas$ on ! date on :i* ! produc] pur*ases ! cov]age4 7,b7 ,subsequ5t premiums ,except z provid$ 9 subp>agraph 7,a71 ! annual premium = a p>ticipat+ dairy produc] %all be det]m9$ "u p>agraph 7#d7 = ea* ye> 9 :i* ! m>g9 insurance program is 9 effect4 7,c7 ,legal obligation 7i7 ,9 g5]al ,except z provid$ 9 clauses 7ii7 & 7iii71 a p>ticipat+ dairy produc] t pur*ases m>g9 insurance %all be legally obligat$ to pay ! applicable premiums = ! entire p]iod ( ! m>g9 insurance program 7z provid$ 9 ! paym5t s*$ule elect$ "u p>agraph 7#d77;,b771 & may n opt out ( ! m>g9 insurance program4 7ii7 ,dea? ,if ! dairy produc] dies1 ! e/ate ( ! deceas$ may cancel ! m>g9 insurance & %all n be responsible = any fur!r premium paym5ts4 7iii7 ,retirem5t ,if ! dairy produc] retires1 ! produc] may reque/ t ,secret>y cancel ! m>g9 insurance if ! produc] has t]m9at$ ! dairy op]ation entirely & c]tifies "u oa? t ! produc] w n be actively engag$ 9 any dairy op]ation = at lea/ ! next #g ye>s4 7#f7 ,paym5t ?re%old ,a p>ticipat+ dairy produc] ) m>g9 insurance %all receive a m>g9 insurance paym5t :5ev] ! av]age actual dairy produc] m>g9 = a consecutive #b-mon? p]iod is less ?an ! cov]age level ?re%old select$ by ! dairy produc] "u p>agraph 7#b74 7#g7 ,m>g9 insurance paym5ts 7,a7 ,9 g5]al ,! ,secret>y %all make a m>g9 insurance protection paym5t to ea* p>ticipat+ dairy produc] :5ev] ! av]age actual dairy produc] m>g9 = a consecutive #b-mon? p]iod is less ?an ! cov]age level ?re%old select$ by ! dairy produc] "u p>agraph 7#b74 7,b7 ,am\nt ( paym5t ,! m>g9 insurance paym5t = ! dairy op]ation ( a p>ticipat+ dairy produc] %all be det]m9$ z foll[s3 7i7 ,! ,secret>y %all calculate ! diff]5ce betwe5-- 7,i7 ! cov]age level ?re%old select$ by ! dairy produc] "u p>agraph 7#b72 & 7,,ii7 ! av]age actual dairy produc] m>g9 = ! consecutive #b-mon? p]iod4 7ii7 ,! am\nt det]m9$ "u clause 7i7 %all be multipli$ by-- 7,i7 ! p]c5tage select$ by ! dairy produc] "u p>agraph 7#c72 & 7,,ii7 ! less] (-- 7aa7 ! quoti5t obta9$ by divid+-- 7,,aa7 ! production hi/ory applicable to ! produc] "u subsection 7e77#a72 by 7,,bb7 #f2 & 7bb7 ! actual quantity ( milk m>ket$ by ! dairy op]ation ( ! dairy produc] dur+ ! consecutive #b-mon? p]iod4 7g7 ,effect ( failure ,to pay premiums 7#a7 ,loss ( b5efits ,a p>ticipat+ dairy produc] t is 9 arre>s on premium paym5ts = m>g9 insurance-- 7,a7 rema9s legally obligat$ to pay ! premiums2 & 7,b7 may n receive m>g9 insurance until ! premiums are fully paid4 7#b7 ,en=cem5t ,! ,secret>y may take su* action z is necess>y to collect premium paym5ts = m>g9 insurance4 7h7 ,duration ,! ,secret>y %all conduct ! m>g9 insurance program dur+ ! p]iod beg9n+ on ,octob] #a1 #bjad1 & end+ on ,septemb] #cj1 #bjah4 4 #c4 ,repeal or reau?orization ( o!r dairy-relat$ provisions 7a7 ,repeal ( dairy product price support program ,section #aeja ( ! ,food1 ,cons]vation1 & ,en]gy ,act ( #bjjh 7#g ,u4,s4,c4 #hgga7 is repeal$4 7b7 ,repeal ( milk income loss contract program ,section #aejf ( ! ,food1 ,cons]vation1 & ,en]gy ,act ( #bjjh 7#g ,u4,s4,c4 #hggc7 is repeal$4 7c7 ,repeal dairy export inc5tive program ,section #aec ( ! ,food ,security ,act ( #aihe 7#ae ,u4,s4,c4 #gac;a-#ad7 is repeal$4 7d7 ,con=m+ am5dm5ts ,section #ijb7b7 ( ! ,trade ,sanctions ,re=m & ,export ,enhancem5t ,act ( #bjjj 7#bb ,u4,s4,c4 #gbja7b77 is am5d$-- 7#a7 by /rik+ subp>agraph 7,d72 & 7#b7 by r$esignat+ subp>agraphs 7,e7 & 7,f7 z subp>agraphs 7,d7 & 7,e71 respectively4 7e7 ,effective date ,! repeals "u subsections 7a71 7b71 & 7c7 & ! am5dm5ts made by subsection 7d7 %all take effect on ,octob] #a1 #bjac4