1. (a) Coverage level threshold and coverage percentage For purposes of receiving margin protection payments for a month, a participating dairy operation shall annually elect—

   1. (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. (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.
2. (b) Payment threshold A participating dairy operation shall receive a margin protection payment whenever the average actual dairy production margin for a month is less than the coverage level threshold selected by the participating dairy operation.

3. (c) Amount of margin protection payment The margin protection payment for the participating dairy operation shall be determined as follows:

   1. (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. (2) The amount determined under paragraph (1) shall be multiplied by—

      1. (A) the coverage percentage selected by the participating dairy operation; and
      2. (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.)

Amendments

2018—Pub. L. 115–123, § 60101(b)(1)(C)(i), substituted “month” for “consecutive 2-month period” wherever appearing.

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

Effective Date of 2018 Amendment

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.