Section 10313: Dairy Policy Updates

🥛 Section 10313: Dairy Policy Updates — In Simple Terms

This part of the law is about helping dairy farmers—the people who raise cows and sell milk. It makes some changes to how the government helps them through a program called Dairy Margin Coverage (DMC), which gives money to farmers when it costs more to make milk than they get paid for selling it.

Here’s what the changes mean:

1. 🐄 Milk History Update

Before, a farm’s help was based only on how much milk it sold the year it first signed up.

Now, they can choose the year (2021, 2022, or 2023) when they sold the most milk to get more help.

If a new farm just started, they can:

• Either guess their full-year milk sales based on the milk they’ve already sold,

• Or use the size of their herd (how many cows) to estimate how much milk they’ll make.

2. 💰 More Coverage

Before, farmers got cheaper help for their first 5 million pounds of milk.

Now, that’s raised to 6 million pounds, which means more milk gets better help.

3. 📉 Discounts for Smaller Farms

The law also continues discounts for smaller farms (lower premium costs) until 2031.

4. 📅 How Long Does This Last?

All of these changes will stay in effect until the year 2031.

✅ Why This Matters

This helps dairy farmers stay in business when times are tough—like when cow food costs a lot but milk prices go down.

Here's the original document:

SEC. 10313. DAIRY POLICY UPDATES.

    (a) Dairy Margin Coverage Production History.--

        (1) Definition.--Section 1401(8) of the Agricultural Act of 

    2014 (7 U.S.C. 9051(8)) is amended by striking ``when the 

    participating dairy operation first registers to participate in 

    dairy margin coverage''.

        (2) Production history of participating dairy operations.--

    Section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is 

    amended by striking subsections (a) and (b) and inserting the 

    following:

    ``(a) Production History.--Except as provided in subsection (b), 

the production history of a dairy operation for dairy margin coverage 

is equal to the highest annual milk marketings of the participating 

dairy operation during any 1 of the 2021, 2022, or 2023 calendar years.

    ``(b) Election by New Dairy Operations.--In the case of a 

participating dairy operation that has been in operation for less than 

a year, the participating dairy operation shall elect 1 of the 

following methods for the Secretary to determine the production history 

of the participating dairy operation:

        ``(1) The volume of the actual milk marketings for the months 

    the participating dairy operation has been in operation 

    extrapolated to a yearly amount.

        ``(2) An estimate of the actual milk marketings of the 

    participating dairy operation based on the herd size of the 

    participating dairy operation relative to the national rolling herd 

    average data published by the Secretary.''.

    (b) Dairy Margin Coverage Payments.--Section 1406(a)(1)(C) of the 

Agricultural Act of 2014 (7 U.S.C. 9056(a)(1)(C)) is amended by 

striking ``5,000,000'' each place it appears and inserting 

``6,000,000''.

    (c) Premiums for Dairy Margins.--

        (1) Tier i.--Section 1407(b) of the Agricultural Act of 2014 (7 

    U.S.C. 9057(b)) is amended--

            (A) in the subsection heading, by striking ``5,000,000'' 

        and inserting ``6,000,000''; and

            (B) in paragraph (1), by striking ``5,000,000'' and 

        inserting ``6,000,000''.

        (2) Tier ii.--Section 1407(c) of the Agricultural Act of 2014 

    (7 U.S.C. 9057(c)) is amended--

            (A) in the subsection heading, by striking ``5,000,000'' 

        and inserting ``6,000,000''; and

            (B) in paragraph (1), by striking ``5,000,000'' and 

        inserting ``6,000,000''.

        (3) Premium discounts.--Section 1407(g) of the Agricultural Act 

    of 2014 (7 U.S.C. 9057(g)) is amended--

            (A) in paragraph (1)--

                (i) by striking ``2019 through 2023'' and inserting 

            ``2026 through 2031''; and

                (ii) by striking ``January 2019'' and inserting 

            ``January 2026''; and

            (B) in paragraph (2), by striking ``2023'' each place it 

        appears and inserting ``2031''.

    (d) Duration.--Section 1409 of the Agricultural Act of 2014 (7 

U.S.C. 9059) is amended by striking ``2025'' and inserting ``2031''.

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