[Federal Register Volume 89, Number 39 (Tuesday, February 27, 2024)]
[Rules and Regulations]
[Pages 14372-14376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03991]


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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.

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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: <a href="/cdn-cgi/l/email-protection#f6929983919a9785d893d89d9f9a91998493b683859297d8919980"><span class="__cf_email__" data-cfemail="5a3e352f3d363b29743f743133363d35283f1a2f293e3b743d352c">[email protected]</span></a>. 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

[[Page 14373]]

adjustment during 2024 DMC enrollment. For those dairy operations 
enrolled in 2023 DMC under a multi-year 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) x 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 lock-in 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 lock-in 
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:
    <bullet> Exempt from the notice and comment provisions of 5 U.S.C. 
553, and
    <bullet> 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

[[Page 14374]]

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

[[Page 14375]]

    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-a-program-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: <a href="/cdn-cgi/l/email-protection#daaaa8b5bda8bbb7f4b3b4aebbb1bf9aafa9bebbf4bdb5ac"><span class="__cf_email__" data-cfemail="7a0a08151d081b175413140e1b111f3a0f091e1b541d150c">[email protected]</span></a>.
    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

0
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

0
2. Amend 1430.402 as follows:
0
a. Add the definition of ``Adjusted base production history'' in 
alphabetical order;
0
b. Remove the definition of ``Supplemental Dairy Margin Coverage 
payment''; and
0
c. Revise the definition of ``Supplemental production history''.
    The addition and revision to read as follows:


Sec.  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.
* * * * *


Sec.  1430.403  [Amended]

0
3. In Sec.  1430.403, amend paragraph (f), by removing the word 
``supplemental'' and adding ``adjusted based'' in its place both times 
it appears.

0
4. Amend Sec.  1430.404 as follows:
0
a. In paragraph (a), remove the word ``supplemental'' and add 
``adjusted base'' in its place;
0
b. Revise paragraph (b) introductory text;
0
c. Remove paragraph (b)(3);
0
d. Revise paragraphs (c)(1) and (e)(2);
0
e. Revise paragraph (h);
    The revisions read as follows:


Sec.  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 one-time adjustment to 
production history based on a prescribed formula using actual 2019 milk 
marketings according to Sec.  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 Sec.  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 Sec.  
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 lock-in 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.

0
5. Amend Sec.  1430.405 as follows:
0
a. In paragraph (a) introductory text, remove the word ``years'' and 
add ``years, and will establish an adjusted base production history, if 
applicable'';
0
b. In paragraph (a)(1), remove the word ``supplemental''; and add ``or 
adjusted base production history'' in its place;
0
c. Revise paragraph (a)(3);
0
d. Add paragraph (a)(4);
0
e. In paragraph (f), remove the words ``and supplemental'' wherever 
they appear and add ``or adjusted base production'' in their place; and

[[Page 14376]]

0
f. In paragraph (g), remove the word ``supplemental'' and add 
``adjusted base production'' in its place;
    The revision and additions read as follows:


Sec.  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 Sec.  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.
* * * * *


Sec.  1430.406   [Amended]

0
6. In Sec.  1430.406, amend paragraph (c) by removing ``2023'' and 
adding ``2024'' in its place;

0
7. Amend Sec.  1430.407 as follows:
0
a. In paragraph (a) introductory text, remove the word ``succeeding'' 
and add ``applicable'' in its place;
0
b. In paragraph (a)(2), remove the words ``and supplemental'' and add 
``or adjusted base production'' in their place; and
0
c. Revise paragraphs (f), (j) and (n).
    The revisions read as follows:


Sec.  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 Sec.  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 
Sec.  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 Sec.  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.


Sec.  1430.409  [Amended]

0
7. Amend Sec.  1430.409 as follows:
0
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;
0
a. In paragraph (b)(2), add the word ``and'' at the end;
0
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;
0
c. Remove paragraph (b)(4); and
0
d. In paragraph (c), remove the word ``history'' and add ``history or 
adjusted base production history'' in its place both times it appears.

0
8. Amend Sec.  1430.413 as follows:
0
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;
0
b. In paragraph (c), remove the date ``December 31, 2023'' and add 
``the end of the lock-in period'' in its place; and
0
c. Add paragraphs (d) and (e).
    The additions read as follows:


Sec.  1430.413  Multi-year contract for lock-in option.

* * * * *
    (d) For 2024 DMC coverage, participating dairy operations with 
lock-in 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 lock-in 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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