14372 Federal Register / Vol. 89, No. 39 / Tuesday, February 27, 2024 / Rules and Regulations 

3323, Fax: 202–646–3347, or Email: femafoia@fema.dhs.gov. 

Federal Law Enforcement Training Center 

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Mason Clutter, 

Chief Privacy Officer, Department of 

Homeland Security. 

[FR Doc. 2024–03936 Filed 2–26–24; 8:45 am] 

BILLING CODE 9110–9L–P 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Part 1430 

RIN 0560–AI66 

[Docket No. FSA–2024–0001] 

Dairy Margin Coverage Production 

History Adjustment and Program 

Extension 

AGENCY: Commodity Credit Corporation 

(CCC) and Farm Service Agency (FSA),

Department of Agriculture (USDA).

ACTION: Final rule. 

SUMMARY: This rule revises the 

regulations for Dairy Margin Coverage 

(DMC) as required by the Further 

Continuing Appropriations and Other 

Extensions Act, 2024, which extends 

provisions of the Agriculture 

Improvement Act of 2018 (2018 Farm 

Bill) and amends the Agricultural Act of 

2014 (2014 Farm Bill) to allow eligible 

dairy operations to make a one-time 

adjustment to established production 

history and extend DMC through 2024. 

In addition, the rule extends eligibility 

of multi-year (lock-in) contracts for an 

additional year until December 31, 

2024, and applies the discounted DMC 

premium rate to the newly established 

adjusted base production history. 

DATES: Effective: February 27, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Douglas Kilgore; telephone: (717) 887– 

0963; email: douglas.e.kilgore@

usda.gov. Individuals with disabilities 

who require alternative means of 

communication should contact USDA 

TARGET Center at (202) 720–2600 

(voice and text telephone (TTY)) or dial 

711 for Telecommunications Relay 

Service (both voice and text telephone 

users can initiate this call from any 

telephone). 

SUPPLEMENTARY INFORMATION: 

Background 

FSA is revising the DMC regulations 

in 7 CFR part 1430 as required by the 

Further Continuing Appropriations and 

Other Extensions Act, 2024 (Pub. L. 

118–22), which extends provisions of 

the 2018 Farm Bill (Pub. L. 115–334) 

and amends the 2014 Farm Bill (Pub. L. 

113–79). This rule is necessary to 

implement statutory revisions to DMC 

to extend coverage for calendar year 

2024 and update the production history 

for dairy operations with less than 5 

million pounds according to a 

prescribed formula using 2019 

marketings. This one-time adjustment 

allows for the production history for 

each participating dairy operation with 

less than 5 million pounds of 

production to better reflect the current 

production of the dairy operation. The 

production history for DMC was 

previously based on the higher of 2011, 

2012, or 2013 marketings. The 

Consolidated Appropriations Act, 2021 

(CAA; Pub. L. 116–260), separately 

authorized, as discussed further below, 

supplemental payments to certain dairy 

operations that had supplemental 

production during DMC coverage years 

2021, 2022, or 2023, based on actual 

2019 marketings. These payments were 

referred to as Supplemental DMC. 

Amendments to DMC made by the 

Further Continuing Appropriations and 

Other Extensions Act, 2024, authorize a 

base production history adjustment for 

certain dairies using the same formula. 

Therefore, for ease of administration, for 

2024 DMC enrollment, dairy operations 

that established supplemental 

production history during the coverage 

years of 2021 through 2023 will 

combine their supplemental production 

history with established production 

history to create one adjusted base 

production history. Dairy operations 

that meet requirements for the 

adjustment but did not establish 

supplemental production history during 

the coverage years of 2021, 2022, and 

2023 will have the opportunity to 

establish a base production history 


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Federal Register / Vol. 89, No. 39 / Tuesday, February 27, 2024 / Rules and Regulations 14373 

adjustment during 2024 DMC 

enrollment. For those dairy operations 

enrolled in 2023 DMC under a multiyear lock-in contract, lock-in eligibility 

will be extended until December 31, 

2024. In addition, dairy operations 

enrolled in multi-year lock-in contracts 

are eligible for the discounted DMC 

premium rate during the 2024 coverage 

year. 

Dairy Margin Coverage 

Section 1403 of Subtitle D of Title I 

of the 2014 Farm Bill (7 U.S.C. 9053) 

authorizes DMC to provide a risk 

management program for dairy 

operations that pays producers when 

the difference between the price of milk 

and the cost of feed (the margin) falls 

below a certain dollar amount selected 

by the producer. Producers are eligible 

for catastrophic level margin protection 

(based on a $4 margin and 95 percent 

production history coverage) for their 

dairy operations by paying an annual 

administrative fee and are also able to 

purchase greater coverage (up to $9.50 

margin on 5 to 95 percent of production 

history) for an annual premium. 

Section 761 of Subtitle B of Title VII 

of Division N of the Consolidated 

Appropriations Act, 2021 (CAA; Pub. L. 

116–260) authorized eligible 

participants in DMC, who have an 

approved DMC contract, the 

opportunity to create a supplemental 

production history and receive 

supplemental payments whenever the 

average actual dairy production margin 

for a month is less than the coverage 

level threshold as selected by the dairy 

operation. Dairy operations eligible for 

supplemental coverage were to have an 

approved DMC contract for the 

applicable calendar year and have an 

existing DMC production history of less 

than 5 million pounds. The 

supplemental production history was 

determined by multiplying 75 percent of 

the result of subtracting the dairy 

operation’s established production 

history from their actual milk 

marketings for the 2019 calendar year as 

follows: 

(2019 milk marketings¥production 

history) × 75% 

Participating dairy operations with 

approved supplemental pounds had the 

same coverage percentage and level as 

on the DMC contract for the applicable 

calendar year and DMC and 

Supplemental DMC payments were 

issued according to the corresponding 

coverage levels for both established 

production history and supplemental 

pounds, respectively. 

Authority to make the supplemental 

production history payments under the 

CAA ended as of December 31, 2023. 

However, amendments to the 2014 Farm 

Bill under the Further Continuing 

Appropriations and Other Extensions 

Act, 2024, use the same supplemental 

production history formula authorized 

by the CAA to determine the new 

adjusted base production history for 

eligible dairy operations to enroll for 

2024 DMC coverage. The result of the 

formula is added to the historic 

established production history resulting 

in a new adjusted base production 

history for the dairy operation. DMC 

payments, when triggered, will be based 

on the adjusted base production history 

and applicable coverage elections for 

the 2024 coverage year. The 

supplemental production history for 

participating dairy operations with 

established production history during 

the 2021, 2022, or 2023 coverage years 

will be combined with their historical 

production history resulting in one new 

adjusted base production history for the 

dairy operation. Dairy operations with 

historical production history over 5 

million pounds and no supplemental 

production history are not affected. 

Eligible DMC dairy operations that did 

not previously establish supplemental 

history may establish an adjusted base 

production history according to the 

previous supplemental formula used to 

update production history. 

For dairy operations enrolled in 2023 

DMC under a multi-year lock-in 

contract, the Further Continuing 

Appropriations and Other Extensions 

Act, 2024, extends their lock-in 

eligibility for another year until 

December 31, 2024. Those dairy 

operations must enroll during the 2024 

coverage election period to extend lockin coverage through coverage year 2024. 

Dairy operations with 2023 lock-in 

coverage that do not enroll during the 

2024 DMC Coverage Election Period 

will not be enrolled in 2024 DMC. Dairy 

operations enrolled in multi-year lockin contracts are eligible for the 

discounted DMC premium rate on all 

pounds of Tier 1 adjusted base 

production history. For dairy operations 

with lock-in contracts that have an 

adjusted base production history that 

exceeds the 5-million pound Tier 1 

threshold, the additional Tier 2 pounds 

will be automatically enrolled at the 

Tier 2, $4.00 Catastrophic level unless 

the dairy operation chooses to opt out 

of lock-in coverage for 2024 DMC. For 

2024, dairy operations with lock-in 

contracts have the option to opt out of 

lock-in coverage and enroll in 2024 

DMC through an annual contract with 

standard non-discounted premium rates 

applicable. 

For 2024, DMC-enrollment 

participating dairy operations with 

annual contracts and adjusted base 

production history will select a coverage 

percentage and level on their adjusted 

base production history and pay the 

standard premium rate. Tier 1 and Tier 

2 premium rates are specified in 7 CFR 

1430.407. DMC enrollment for the 2024 

coverage year will be effective 

retroactive to January 1, 2024. Eligible 

dairy operations that are approved for 

2024 DMC enrollment will receive any 

applicable payments triggered after 

January 1, 2024. 

FSA will announce by press release 

and external communications a 60-day 

or more enrollment or coverage election 

period for participating dairy operations 

to enroll in 2024 DMC. 

Notice, Comment, Exemptions, and 

Effective Date 

As specified in section 1601(c)(2) of 

Subtitle F of Title I of the 2014 Farm 

Bill (7 U.S.C. 9091(c)(2)), the regulations 

to implement and administer the DMC 

Program are: 

• Exempt from the notice and

comment provisions of 5 U.S.C. 553, 

and 

• Exempt from the Paperwork

Reduction Act (44 U.S.C. chapter 35). 

In addition, section 1601(c)(3) as well 

as section 1246 of Subtitle E of title XII 

of the Food Security Act of 1985 (16 

U.S.C. 3846) direct the Secretary to use 

the authority provided in 5 U.S.C. 808 

(part of the Congressional Review Act), 

which provides that when an agency 

finds for good cause that notice and 

public procedure are impracticable, 

unnecessary, or contrary to the public 

interest, the rule may take effect at such 

time as the agency determines. 

DMC is authorized through December 

31, 2024, under the recently enacted 

Further Continuing Appropriations and 

Other Extensions Act, 2024, which also 

extends certain provisions of the 2018 

Farm Bill through September 30, 2024. 

FSA and CCC find that notice and 

public procedure are contrary to the 

public interest. Therefore, even though 

this rule is a major rule for purposes of 

the Congressional Review Act (5 U.S.C. 

800–808), FSA and CCC are not required 

to delay the effective date for 60 days 

from the date of publication to allow for 

Congressional review. Therefore, this 

rule is effective on the date of 

publication in the Federal Register. 

In addition, because this rule is 

exempt from the requirements in 5 

U.S.C. 553, it is also exempt from the 

regulatory analysis requirements of the 

Regulatory Flexibility Act (5 U.S.C. 

601–612), as amended by the Small 

Business Regulatory Enforcement 


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1See https://sam.gov/content/assistance-listings. 

Fairness Act of 1996 (SBREFA). The 

requirements for the regulatory 

flexibility analysis in 5 U.S.C. 603 and 

604 are specifically tied to the agency 

being required to issue a proposed rule 

by section 553 or any other law, further, 

the definition of rule in 5 U.S.C. 601 is 

tied to the publication of a proposed 

rule. 

Executive Orders 12866 and 13563 

Executive Order 12866, ‘‘Regulatory 

Planning and Review,’’ and Executive 

Order 13563, ‘‘Improving Regulation 

and Regulatory Review,’’ direct agencies 

to assess all costs and benefits of 

available regulatory alternatives and, if 

regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, distributive impacts, 

and equity). Executive Order 13563 

emphasized the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. The 

requirements in Executive Orders 12866 

and 13573 for the analysis of costs and 

benefits apply to rules that are 

determined to be significant. 

The Office of Management and Budget 

(OMB) designated this rule as not 

significant under Executive Order 12866 

and therefore, OMB has not reviewed 

this rule. 

Environmental Review 

The environmental impacts of this 

final rule have been considered in a 

manner consistent with the provisions 

of the National Environmental Policy 

Act (NEPA, 42 U.S.C. 4321–4347), the 

regulations of the Council on 

Environmental Quality (40 CFR parts 

1500–1508), the FSA regulation for 

compliance with NEPA (7 CFR part 

799), and, because FSA will be making 

the payments to producers, the USDA 

regulation for compliance with NEPA (7 

CFR part 1b). 

The intent of the DMC Program is a 

margin-based support program for dairy 

producers providing risk management 

coverage that will pay producers when 

the difference between the national 

price of milk and the national estimated 

cost of feed (the margin) falls below a 

certain level. The aspects of DMC being 

revised in this rule do not have the 

potential to impact the human 

environment. As such, for DMC, the 

FSA categorical exclusions in 7 CFR 

799.31 apply, specifically 7 CFR 

799.31(b)(6)(iii) Financial assistance to 

supplement income, manage the supply 

of agricultural commodities, or 

influence the cost or supply of such 

commodities or programs of a similar 

nature or intent (that is, price support 

programs) and (vi) Safety net programs 

administered by FSA. 

Through this review, FSA determined 

that the proposed changes in this rule fit 

within the categorical exclusions listed 

above. Categorical exclusions apply 

when no extraordinary circumstances 

exist (7 CFR 799.33). As such, FSA 

evaluated the potential for extraordinary 

circumstances and determined that 

none apply because the provisions 

identified in this final rule are minor 

and administrative in nature, are 

intended to clarify the mandatory 

requirements of the programs, and do 

not constitute a major Federal action 

that would significantly affect the 

quality of the human environment, 

individually or cumulatively. Therefore, 

an environmental assessment or 

environmental impact statement will 

not be prepared for this regulatory 

action; this rule serves as 

documentation of the programmatic 

environmental compliance decision for 

this Federal action. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, ‘‘Civil Justice 

Reform.’’ This rule will not preempt 

State or local laws, regulations, or 

policies unless they represent an 

irreconcilable conflict with this rule. 

Eligible dairy operations that are 

approved for 2024 DMC enrollment will 

receive any applicable payments that 

trigger after January 1, 2024. Before any 

judicial actions may be brought 

regarding the provisions of this rule, the 

administrative appeal provisions of 7 

CFR parts 11 and 780 are to be 

exhausted. 

Executive Order 13175 

This rule has been reviewed in 

accordance with the requirements of 

Executive Order 13175, ‘‘Consultation 

and Coordination with Indian Tribal 

Governments.’’ Executive Order 13175 

requires Federal agencies to consult and 

coordinate with Tribes on a 

Government-to-Government basis on 

policies that have Tribal implications, 

including regulations, legislative 

comments or proposed legislation, and 

other policy statements or actions that 

have substantial direct effects on one or 

more Indian Tribes, on the relationship 

between the Federal Government and 

Indian Tribes, or on the distribution of 

power and responsibilities between the 

Federal Government and Indian Tribes. 

USDA has assessed the impact of this 

rule on Indian Tribes and determined 

that this rule does not, to our 

knowledge, have Tribal implications 

that required Tribal consultation under 

Executive Order 13175 at this time. If a 

Tribe requests consultation, the USDA 

Office of Tribal Relations (OTR) will 

ensure meaningful consultation is 

provided where changes, additions, and 

modifications are not expressly 

mandated by law. 

Unfunded Mandates Reform Act 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA, Pub. L. 

104–4) requires Federal agencies to 

assess the effects of their regulatory 

actions of State, local, and Tribal 

governments or the private sector. 

Agencies generally must prepare a 

written statement, including cost benefit 

analysis, for proposed and final rules 

with Federal mandates that may result 

in expenditures of $100 million or more 

in any 1 year for State, local or Tribal 

governments, in the aggregate, or to the 

private sector. UMRA generally requires 

agencies to consider alternatives and 

adopt the more cost effective or least 

burdensome alternative that achieves 

the objectives of the rule. This rule 

contains no Federal mandates, as 

defined in Title II of UMRA, for State, 

local and Tribal governments or the 

private sector. Therefore, this rule is not 

subject to the requirements of sections 

202 and 205 of UMRA. 

Paperwork Reduction Act (PRA) 

As noted above, the regulations to 

implement the DMC Program are 

exempt from PRA as specified in 7 

U.S.C. 9091. 

Federal Assistance Programs 

The title and number of the Federal 

assistance program, as found in the 

Assistance Listing 1 to which this rule 

applies is: 10.127—Dairy Margin 

Coverage Program. 

USDA Non-Discrimination Policy 

In accordance with Federal civil 

rights law and USDA civil rights 

regulations and policies, USDA, its 

Agencies, offices, and employees, and 

institutions participating in or 

administering USDA programs are 

prohibited from discriminating based on 

race, color, national origin, religion, sex, 

gender identity (including gender 

expression), sexual orientation, 

disability, age, marital status, family or 

parental status, income derived from a 

public assistance program, political 

beliefs, or reprisal or retaliation for prior 

civil rights activity, in any program or 

activity conducted or funded by USDA 

(not all bases apply to all programs). 

Remedies and complaint filing 

deadlines vary by program or incident. 


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Individuals who require alternative 

means of communication for program 

information (for example, braille, large 

print, audiotape, American Sign 

Language, etc.) should contact the 

responsible Agency or USDA TARGET 

Center at (202) 720–2600 (voice and text 

telephone (TTY)) or dial 711 for 

Telecommunications Relay Service 

(both voice and text telephone users can 

initiate this call from any telephone). 

Additionally, program information may 

be made available in languages other 

than English. 

To file a program discrimination 

complaint, complete the USDA Program 

Discrimination Complaint Form, AD– 

3027, found online at https://

www.usda.gov/oascr/how-to-file-aprogram-discrimination-complaint and 

at any USDA office or write a letter 

addressed to USDA and provide in the 

letter all the information requested in 

the form. To request a copy of the 

complaint form, call (866) 632–9992. 

Submit your completed form or letter to 

USDA by: (1) mail to: U.S. Department 

of Agriculture, Office of the Assistant 

Secretary for Civil Rights, 1400 

Independence Avenue SW, Washington, 

DC 20250–9410; (2) fax: (202) 690–7442; 

or (3) email: program.intake@usda.gov. 

USDA is an equal opportunity 

provider, employer, and lender. 

List of Subjects in 7 CFR Part 1430 

Dairy products, Fraud, Penalties, 

Reporting and recordkeeping 

requirements. 

For the reasons discussed above, CCC 

amends 7 CFR part 1430 as follows: 

PART 1430—DAIRY PRODUCTS 

■ 1. The authority citation for part 1430 

is revised to read as follows: 

Authority: 7 U.S.C. 9051–9060 and 9071 

and 15 U.S.C. 714b and 714c. 

Subpart D—Dairy Margin Coverage 

Program 

■ 2. Amend 1430.402 as follows: 

■ a. Add the definition of ‘‘Adjusted 

base production history’’ in alphabetical 

order; 

■ b. Remove the definition of 

‘‘Supplemental Dairy Margin Coverage 

payment’’; and 

■ c. Revise the definition of 

‘‘Supplemental production history’’. 

The addition and revision to read as 

follows: 

§ 1430.402 Definitions. 

* * * * * 

Adjusted base production history 

means the production history 

determined under this subpart for a 

participating dairy operation with 

production of less than 5 million 

pounds that is adjusted according to this 

subpart. 

* * * * * 

Supplemental production history 

means the production history 

determined according to a formula using 

actual 2019 marketings, as authorized 

by the Consolidated Appropriations Act, 

2021 (Pub. L. 116–260) for coverage 

years 2021, 2022, and 2023, for dairy 

operations enrolled in DMC with less 

than 5 million pounds of production. 

* * * * * 

§ 1430.403 [Amended] 

■ 3. In § 1430.403, amend paragraph (f), 

by removing the word ‘‘supplemental’’ 

and adding ‘‘adjusted based’’ in its place 

both times it appears. 

■ 4. Amend § 1430.404 as follows: 

■ a. In paragraph (a), remove the word 

‘‘supplemental’’ and add ‘‘adjusted 

base’’ in its place; 

■ b. Revise paragraph (b) introductory 

text; 

■ c. Remove paragraph (b)(3); 

■ d. Revise paragraphs (c)(1) and (e)(2); 

■ e. Revise paragraph (h); 

The revisions read as follows: 

§ 1430.404 Time and method of 

registration and annual election. 

* * * * * 

(b) A dairy operation must submit 

completed contracts and any other 

supporting documentation, during the 

annual election period established by 

the Deputy Administrator, to the 

administrative county FSA office 

serving the dairy operation. However, 

the production history must be 

established only once and approved by 

CCC before the contract is submitted 

and considered complete. Dairy 

operations with less than 5 million 

pounds of production may make a onetime adjustment to production history 

based on a prescribed formula using 

actual 2019 milk marketings according 

to § 1430.405(a)(3), during the 2024 

annual coverage election period. Once 

the adjusted base production history is 

established, that history will be 

permanent, will be used in place of 

previously established production 

history, and will be subject to coverage 

elections made by the dairy operation 

under the lock-in option according to 

§ 1430.407(j) or made by the dairy 

operation in subsequent annual 

coverage year enrollments. 

* * * * * 

(c) * * * 

(1) The applicable year of coverage for 

contracts received during an annual 

election period will be the following 

calendar year, except for 2019 and 2024, 

where the election and coverage year 

will be the same, or unless otherwise 

specified by the Deputy Administrator 

for Farm Programs. Coverage for dairy 

operations that register during the 2019 

election period will be retroactive to 

January 1, 2019. Coverage for dairy 

operations that are approved for 2024 

DMC enrollment will receive any 

applicable payments triggered after 

January 1, 2024. 

* * * * * 

(e) * * * 

(2) During the 2019 annual coverage 

election period only, participating dairy 

operations that make a one-time election 

of coverage level and percentage of 

coverage, according to § 1430.407(j), 

will be locked in at the same coverage 

level and percentage of coverage for a 5- 

year period beginning January 1, 2019, 

and ending December 31, 2023. During 

the annual coverage election period, 

dairy operations that elected that lockin option must choose to remain locked 

in at the same coverage level and 

percentage of coverage for an additional 

year, ending December 31, 2024, or opt 

out of lock-in coverage for coverage year 

2024. Dairy operations that elect the 

lock-in option are required to pay the 

annual administrative fee and submit an 

annual contract during the annual 

contract election period for each 

coverage year to certify that the dairy 

operation is still in the business of 

producing and commercially marketing 

milk. If the operation fails to pay the 

applicable administrative fees or certify 

the status of the dairy operation, the 

dairy operation will remain obligated 

for all applicable unpaid administrative 

and premium fees calculated for the 

lock-in period. 

* * * * * 

(h) In addition to meeting 

requirements in paragraph (g) of this 

section, the dairy operation must submit 

a separate form as prescribed by CCC to 

establish the adjusted base production 

history for the dairy operation, if 

applicable, to complete a submission. 

■ 5. Amend § 1430.405 as follows: 

■ a. In paragraph (a) introductory text, 

remove the word ‘‘years’’ and add 

‘‘years, and will establish an adjusted 

base production history, if applicable’’; 

■ b. In paragraph (a)(1), remove the 

word ‘‘supplemental’’; and add ‘‘or 

adjusted base production history’’ in its 

place; 

■ c. Revise paragraph (a)(3); 

■ d. Add paragraph (a)(4); 

■ e. In paragraph (f), remove the words 

‘‘and supplemental’’ wherever they 

appear and add ‘‘or adjusted base 

production’’ in their place; and 


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14376 Federal Register / Vol. 89, No. 39 / Tuesday, February 27, 2024 / Rules and Regulations 

■ f. In paragraph (g), remove the word 

‘‘supplemental’’ and add ‘‘adjusted base 

production’’ in its place; 

The revision and additions read as 

follows: 

§ 1430.405 Establishment and transfer of 

production history for a participating dairy 

operation. 

* * * * * 

(a) * * * 

(3) A participating dairy operation 

may establish supplemental production 

history during the coverage election 

period preceding the coverage year, 

except for 2021 when a special 

enrollment will occur. To determine 

supplemental production history, the 

dairy operation production history 

established according to paragraph (a), 

(b), or (c) of this section must be 

subtracted from that dairy operation’s 

actual pounds of 2019 milk production 

as indicated on the milk marketing 

statement, with the result multiplied by 

75 percent. Supplemental production 

history may not be established after the 

2023 coverage year. 

(4) A participating dairy operation 

with production of less than 5 million 

pounds may establish adjusted base 

production history during the coverage 

election period beginning with the 2024 

coverage year. To determine adjusted 

base production history, the dairy 

operation production history 

established according to paragraph (a), 

(b), or (c) of this section, and as 

previously adjusted under paragraph (e) 

of this section, if applicable, must be 

subtracted from that dairy operation’s 

actual pounds of 2019 milk production 

as indicated on the milk marketing 

statement, with the result multiplied by 

75 percent, and then added to the 

previously established production 

history. If the new adjusted base 

production history for a lock-in contract 

in coverage year 2024 exceeds the 

maximum 5 million pounds that can be 

covered under Tier 1, according to 

§ 1430.407(d), the excess pounds above 

5 million pounds will be enrolled in 

Tier 2 at the $4.00 Catastrophic level 

coverage. If the new adjusted base 

production history for an annual 

contract exceeds the maximum 5 

million pounds that can be covered 

under Tier 1, the excess pounds above 

5 million pounds will be enrolled 

according to the coverage elections on 

the annual contract. 

* * * * * 

§ 1430.406 [Amended] 

■ 6. In § 1430.406, amend paragraph (c) 

by removing ‘‘2023’’ and adding ‘‘2024’’ 

in its place; 

■ 7. Amend § 1430.407 as follows: 

■ a. In paragraph (a) introductory text, 

remove the word ‘‘succeeding’’ and add 

‘‘applicable’’ in its place; 

■ b. In paragraph (a)(2), remove the 

words ‘‘and supplemental’’ and add ‘‘or 

adjusted base production’’ in their 

place; and 

■ c. Revise paragraphs (f), (j) and (n). 

The revisions read as follows: 

§ 1430.407 Buy-up coverage. 

* * * * * 

(f) The annual premium due for a 

participating dairy operation is 

calculated for production history or 

adjusted base production history, as 

applicable, by multiplying: 

(1) The covered production history or 

adjusted base production history; and 

(2) The premium per cwt of milk 

specified in paragraph (e) of this section 

for the coverage level elected in 

paragraph (d) of this section by the dairy 

operation. 

* * * * * 

(j) For each calendar year 2019 

through 2023, a participating dairy 

operation that makes a one-time election 

of a coverage level threshold and a 

percentage of coverage according to this 

section, for a 5-year period, will have 

their elected coverage level, as 

applicable to each tier, reduced by 25 

percent. The option to lock in for the 

premium rate discount must be elected 

during the 2019 annual coverage 

election period announced by FSA. 

Except that, new dairy operations, not 

in existence during the 2019 annual 

election period, that elect to participate 

in DMC according to § 1430.404(b), are 

eligible to receive the premium rate 

discount for locking coverage for the 

period beginning with the first available 

calendar year and ending in 2023, 

except that new dairy operations 

registering for DMC for the first time for 

coverage year 2023 and dairy operations 

that stop producing and marketing milk 

in 2019 that are registering for eligible 

months in 2019 are not eligible for the 

multi-year premium rate discount. All 

dairy operations that elect the lock-in 

option are subject to full participation in 

the DMC Program at the same elected 

premium coverage levels and calculated 

premium for the duration of DMC 

according to § 1430.413. Participating 

dairy operations that received the 

premium rate discount during the 2023 

calendar year of coverage are eligible to 

receive the premium rate discount for 

calendar year 2024, unless the dairy 

operation opts-out of lock-in coverage 

for 2024 according to § 1430.404(e)(2). 

* * * * * 

(n) The premium rate for adjusted 

base production history eligible under a 

lock-in contract maintains the 25 

percent discounted rate according to 

paragraph (j) of this section. 

§ 1430.409 [Amended] 

■ 7. Amend § 1430.409 as follows: 

■ a. In paragraph (b), remove the words 

‘‘production history’’ and add the words 

‘‘production history or established 

adjusted base production history’’ in 

their place both times they appear; 

■ a. In paragraph (b)(2), add the word 

‘‘and’’ at the end; 

■ b. In paragraph (b)(3), remove the 

words ‘‘of the’’ and add ‘‘or adjusted 

base production history of the’’ in their 

place and remove ‘‘; and’’ and add a 

period in their place; 

■ c. Remove paragraph (b)(4); and 

■ d. In paragraph (c), remove the word 

‘‘history’’ and add ‘‘history or adjusted 

base production history’’ in its place 

both times it appears. 

■ 8. Amend § 1430.413 as follows: 

■ a. In paragraph (b), remove the words 

‘‘for each’’ and add ‘‘no later than 

September 1 of the applicable calendar 

year of coverage’’ in their place; 

■ b. In paragraph (c), remove the date 

‘‘December 31, 2023’’ and add ‘‘the end 

of the lock-in period’’ in its place; and 

■ c. Add paragraphs (d) and (e). 

The additions read as follows: 

§ 1430.413 Multi-year contract for lock-in 

option. 

* * * * * 

(d) For 2024 DMC coverage, 

participating dairy operations with lockin coverage in 2023 are eligible to 

extend lock-in coverage for coverage 

year 2024. 

(e) During the 2024 election period, a 

participating dairy operation with lockin coverage in 2023, may opt out of the 

lock-in contract for coverage year 2024 

and enroll in 2024 DMC through an 

annual contract at the standard 

premium rate. 

Zach Ducheneaux, 

Administrator, Farm Service Agency, and 

Executive Vice President, Commodity Credit 

Corporation. 

[FR Doc. 2024–03991 Filed 2–23–24; 1:00 pm] 

BILLING CODE 3410–E2–P 


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