I 

115TH CONGRESS 

2D SESSION H. R. 5462 

To amend the Agricultural Act of 2014 to provide support for dairy producers, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 10, 2018 

Mr. PETERSON introduced the following bill; which was referred to the 

Committee on Agriculture 

A BILL 

To amend the Agricultural Act of 2014 to provide support 

for dairy producers, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Dairy Risk Manage5 ment Act of 2018’’. 

6 SEC. 2. DAIRY RISK MANAGEMENT PROGRAM FOR DAIRY 

7 PRODUCERS. 

8 (a) REVIEW OF DATA USED IN CALCULATION OF AV9 ERAGE FEED COST.—Not later than 60 days after the 

10 date of the enactment of this Act, the Secretary of AgriVerDate Sep 11 2014 01:14 Apr 12, 2018 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5462.IH H5462

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1 culture shall submit to the Committee on Agriculture of 

2 the House of Representatives and the Committee on Agri3 culture, Nutrition, and Forestry of the Senate a report 

4 evaluating the extent to which the average cost of feed 

5 used by a dairy operation to produce a hundredweight of 

6 milk calculated by the Secretary as required by section 

7 1402(a) of the Agricultural Act of 2014 (7 U.S.C. 

8 9052(a)) is representative of actual dairy feed costs. 

9 (b) CORN SILAGE REPORT.—Not later than 1 year 

10 after the date of the enactment of this Act, the Secretary 

11 of Agriculture shall submit to the Committee on Agri12 culture of the House of Representatives and the Com13 mittee on Agriculture, Nutrition, and Forestry of the Sen14 ate a report detailing the costs incurred by dairy oper15 ations in the use of corn silage as feed, and the difference 

16 between the feed cost of corn silage and the feed cost of 

17 corn. 

18 (c) COLLECTION OF ALFALFA HAY DATA.—Not later 

19 than 120 days after the date of the enactment of this Act, 

20 the Secretary of Agriculture, acting through the National 

21 Agricultural Statistics Service, shall revise monthly price 

22 survey reports to include prices for high-quality alfalfa hay 

23 in the top five milk producing States, as measured by vol24 ume of milk produced during the previous month. 


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1 (d) REGISTRATION OF MULTIPRODUCER DAIRY OP2 ERATIONS.—Section 1404(b) of the Agricultural Act of 

3 2014 (7 U.S.C. 9054(b)) is amended— 

4 (1) in paragraph (3), by striking ‘‘If’’ and in5 serting ‘‘Subject to paragraph (5), if’’; and 

6 (2) by adding at the end the following new 

7 paragraph: 

8 ‘‘(5) CERTAIN MULTIPRODUCER DAIRY OPER9 ATION EXCLUSIONS.— 

10 ‘‘(A) EXCLUSION OF LOW-PERCENTAGE

11 OWNERS.—To promote administrative efficiency 

12 in the dairy risk management program, a multi13 producer dairy operation covered by paragraph 

14 (3) may elect, at the option of the multipro15 ducer dairy operation, to exclude information 

16 from the registration process regarding any in17 dividual owner of the multiproducer dairy oper18 ation that— 

19 ‘‘(i) holds less than a five percent 

20 ownership interest in the multiproducer 

21 dairy operation; or 

22 ‘‘(ii) is entitled to less than five per23 cent of the income, revenue, profit, gain, 

24 loss, expenditure, deduction, or credit of 


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1 the multiproducer dairy operation for any 

2 given year. 

3 ‘‘(B) EFFECT OF EXCLUSION ON DAIRY

4 RISK MANAGEMENT PAYMENTS.—To the extent 

5 that an individual owner of a multiproducer 

6 dairy operation is excluded under subparagraph 

7 (A) from the registration of the multiproducer 

8 dairy operation, any dairy risk management 

9 payment made to the multiproducer dairy oper10 ation shall be reduced by an amount equal to 

11 the greater of the following: 

12 ‘‘(i) The amount determined by multi13 plying the dairy risk management payment 

14 otherwise determined under section 1406 

15 by the total percentage of ownership inter16 ests represented by the excluded owners. 

17 ‘‘(ii) The amount determined by mul18 tiplying the dairy risk management pay19 ment otherwise determined under section 

20 1406 by the total percentage of the in21 come, revenue, profit, gain, loss, expendi22 ture, deduction, or credit of the multipro23 ducer dairy operation represented by the 

24 excluded owners.’’. 


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1 (e) RELATION TO LIVESTOCK GROSS MARGIN FOR

2 DAIRY PROGRAM.—Section 1404(d) of the Agricultural 

3 Act of 2014 (7 U.S.C. 9054(d)) is amended— 

4 (1) by striking ‘‘but not both’’ and inserting 

5 ‘‘but not on the same production’’; 

6 (2) by striking ‘‘or the’’ and inserting ‘‘and 

7 the’’; and 

8 (3) by striking ‘‘margin protection program’’ 

9 and inserting ‘‘dairy risk management program’’. 

10 (f) PRODUCTION HISTORY OF PARTICIPATING DAIRY

11 OPERATORS.— 

12 (1) CONTINUED USE OF PRIOR DAIRY OPER13 ATION PRODUCTION HISTORY.—Section 1405(a)(1) 

14 of the Agricultural Act of 2014 (7 U.S.C. 

15 9055(a)(1)) is amended by adding at the end the 

16 following new sentence: ‘‘The production history of 

17 a participating dairy operation shall continue to be 

18 based on annual milk marketings during the 2011, 

19 2012, or 2013 calendar year notwithstanding the op20 eration of the dairy risk management program 

21 through 2023.’’. 

22 (2) ADJUSTMENT.—Section 1405(a) of the Ag23 ricultural Act of 2014 (7 U.S.C. 9055(a)) is amend24 ed— 


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1 (A) in paragraph (2), by striking ‘‘In sub2 sequent years’’ and inserting ‘‘In the subse3 quent calendar years ending before January 1, 

4 2019’’; and 

5 (B) in paragraph (3), by inserting ‘‘, as 

6 applicable’’ after ‘‘paragraph (2)’’. 

7 (3) LIMITATION ON CHANGES TO BUSINESS

8 STRUCTURE.—Section 1405 of the Agricultural Act 

9 of 2014 (7 U.S.C. 9055) is amended by adding at 

10 the end the following new subsection: 

11 ‘‘(d) LIMITATION ON CHANGES TO BUSINESS STRUC12 TURE.—The Secretary may not make dairy risk manage13 ment payments to a participating dairy operation if the 

14 Secretary determines that the participating dairy oper15 ation has reorganized the structure of such operation sole16 ly for the purpose of qualifying as a new operation under 

17 subsection (b).’’. 

18 (g) DAIRY RISK MANAGEMENT PAYMENTS.— 

19 (1) ELECTION OF COVERAGE LEVEL THRESH20 OLD AND COVERAGE PERCENTAGE.—Section 1406 of 

21 the Agricultural Act of 2014 (7 U.S.C. 9056) is 

22 amended— 

23 (A) in subsection (a), by striking ‘‘annu24 ally’’; and 


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1 (B) by adding at the end the following new 

2 subsection: 

3 ‘‘(d) DEADLINE FOR ELECTION; DURATION.—Not 

4 later than 90 days after the date of the enactment of this 

5 subsection, each participating dairy operation shall elect 

6 a coverage level threshold under subsection (a)(1) and a 

7 coverage percentage under subsection (a)(2) to be used to 

8 determine dairy risk management payments. This election 

9 shall remain in effect for the participating dairy operation 

10 for the duration of the dairy risk management program, 

11 as specified in section 1409.’’. 

12 (2) ADDITIONAL COVERAGE LEVEL THRESH13 OLDS FOR CERTAIN PRODUCERS.—Section 

14 1406(a)(1) of the Agricultural Act of 2014 (7 

15 U.S.C. 9056(a)(1)) is amended by inserting after 

16 ‘‘or $8.00’’ the following: ‘‘(and in the case of pro17 duction subject to premiums under section 1407(b), 

18 also $8.50 or $9.00)’’. 

19 (3) ELECTION OF PRODUCTION HISTORY COV20 ERAGE PERCENTAGE.—Section 1406(a)(2) of the 

21 Agricultural Act of 2014 (7 U.S.C. 9056(a)(2)) is 

22 amended by striking ‘‘beginning with 25 percent and 

23 not exceeding’’ and inserting ‘‘but not to exceed’’. 

24 (h) PREMIUMS FOR PARTICIPATION IN DAIRY RISK

25 MANAGEMENT PROGRAM.— 


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1 (1) PREMIUM PER HUNDREDWEIGHT FOR FIRST

2 5 MILLION POUNDS OF PRODUCTION.—Section 

3 1407(b) of the Agricultural Act of 2014 (7 U.S.C. 

4 9057(b)) is amended— 

5 (A) by striking paragraph (2) and insert6 ing the following new paragraph: 

7 ‘‘(2) PRODUCER PREMIUMS.—The following an8 nual premiums apply: 

‘‘Coverage Level Premium per Cwt. 

$4.00 None 

$4.50 $0.002 

$5.00 $0.005 

$5.50 $0.008 

$6.00 $0.010 

$6.50 $0.017 

$7.00 $0.041 

$7.50 $0.057 

$8.00 $0.090 

$8.50 $0.120 

$9.00 $0.170’’; 

9 and 

10 (B) by striking paragraph (3). 

11 (2) TECHNICAL CORRECTION.—Section 1407(d) 

12 of the Agricultural Act of 2014 (7 U.S.C. 9057(d)) 

13 is amended in the subsection heading by striking 

14 ‘‘TIME FOR’’ and inserting ‘‘METHOD OF’’. 

15 (i) CONFORMING AMENDMENTS RELATED TO PRO16 GRAM NAME.— 

17 (1) HEADING.—The heading of part I of sub18 title D of title I of the Agricultural Act of 2014 


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1 (Public Law 113–79; 128 Stat. 688) is amended to 

2 read as follows: 

3 ‘‘PART I—DAIRY RISK MANAGEMENT PROGRAM 

4 FOR DAIRY PRODUCERS’’. 

5 (2) DEFINITIONS.—Section 1401 of the Agri6 cultural Act of 2014 (7 U.S.C. 9051) is amended— 

7 (A) by striking paragraphs (5) and (6) and 

8 inserting the following new paragraphs: 

9 ‘‘(5) DAIRY RISK MANAGEMENT PROGRAM.— 

10 The terms ‘dairy risk management program’ and 

11 ‘program’ mean the dairy risk management program 

12 required by section 1403. 

13 ‘‘(6) DAIRY RISK MANAGEMENT PAYMENT.— 

14 The term ‘dairy risk management payment’ means a 

15 payment made to a participating dairy operation 

16 under the program pursuant to section 1406.’’; and 

17 (B) in paragraphs (7) and (8), by striking 

18 ‘‘margin protection’’ both places it appears. 

19 (3) CALCULATION OF ACTUAL DAIRY PRODUC20 TION MARGIN.—Section 1402(b)(1) of the Agricul21 tural Act of 2014 (7 U.S.C. 9052(b)(1)) is amended 

22 by striking ‘‘margin protection’’ and inserting ‘‘dairy 

23 risk management’’. 


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1 (4) PROGRAM OPERATION.—Section 1403 of 

2 the Agricultural Act of 2014 (7 U.S.C. 9053) is 

3 amended— 

4 (A) in the section heading, by striking 

5 ‘‘ESTABLISHMENT OF MARGIN PROTEC6 TION’’ and inserting ‘‘DAIRY RISK MANAGE7 MENT’’; 

8 (B) by striking ‘‘Not later than September 

9 1, 2014, the Secretary shall establish and ad10 minister a margin protection program’’ and in11 serting ‘‘The Secretary shall continue to admin12 ister a dairy risk management program’’; and 

13 (C) by striking ‘‘margin protection pay14 ment’’ both places it appears and inserting 

15 ‘‘dairy risk management payment’’. 

16 (5) PARTICIPATION.—Section 1404 of the Agri17 cultural Act of 2014 (7 U.S.C. 9054) is amended— 

18 (A) in the section heading, by striking 

19 ‘‘MARGIN PROTECTION’’; 

20 (B) in subsection (a), by striking ‘‘margin 

21 protection program to receive margin protection 

22 payments’’ and inserting ‘‘dairy risk manage23 ment program to receive dairy risk management 

24 payments’’; and 


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1 (C) in subsections (b) and (c), by striking 

2 ‘‘margin protection’’ each place it appears. 

3 (6) PRODUCTION HISTORY.—Section 1405 of 

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

5 amended— 

6 (A) in subsection (a)(1)— 

7 (i) by striking ‘‘margin protection pro8 gram’’ the first place it appears and insert9 ing ‘‘dairy risk management program’’; 

10 and 

11 (ii) by striking ‘‘margin protection’’ 

12 the second place it appears; and 

13 (B) in subsection (c), by striking ‘‘margin 

14 protection’’. 

15 (7) PAYMENTS.—Section 1406 of the Agricul16 tural Act of 2014 (7 U.S.C. 9056) is amended— 

17 (A) in the section heading, by striking 

18 ‘‘MARGIN PROTECTION’’ and inserting 

19 ‘‘DAIRY RISK MANAGEMENT’’; 

20 (B) by striking ‘‘margin protection’’ each 

21 place it appears and inserting ‘‘dairy risk man22 agement’’; and 

23 (C) in the heading of subsection (c), by 

24 striking ‘‘MARGIN PROTECTION’’. 


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1 (8) PREMIUMS.—Section 1407 of the Agricul2 tural Act of 2014 (7 U.S.C. 9057) is amended— 

3 (A) in the section heading, by striking 

4 ‘‘MARGIN PROTECTION’’ and inserting 

5 ‘‘DAIRY RISK MANAGEMENT’’; 

6 (B) in subsection (a), by striking ‘‘margin 

7 protection program’’ and inserting ‘‘dairy risk 

8 management program’’; and 

9 (C) in subsection (e), by striking ‘‘margin 

10 protection’’ both places it appears. 

11 (9) PENALTIES.—Section 1408 of the Agricul12 tural Act of 2014 (7 U.S.C. 9058) is amended by 

13 striking ‘‘margin protection’’ both places it appears 

14 and inserting ‘‘dairy risk management’’. 

15 (10) ADMINISTRATION AND ENFORCEMENT.— 

16 Section 1410 of the Agricultural Act of 2014 (7 

17 U.S.C. 9060) is amended by striking ‘‘margin pro18 tection’’ each place it appears and inserting ‘‘dairy 

19 risk management’’. 

20 (j) EFFECTIVE DATE.—The amendments made by 

21 this section shall take effect 60 days after the date of the 

22 enactment of this Act. 

23 (k) DURATION.—Section 1409 of the Agricultural 

24 Act of 2014 (7 U.S.C. 9059) is amended— 


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1 (1) by striking ‘‘margin protection’’ and insert2 ing ‘‘dairy risk management’’; and 

3 (2) by striking ‘‘2018’’ and inserting ‘‘2023’’. 

4 SEC. 3. CLASS I SKIM MILK PRICE. 

5 (a) CLASS I SKIM MILK PRICE.—Section 8c(5)(A) of 

6 the Agricultural Adjustment Act (7 U.S.C. 608c(5)(A)), 

7 reenacted with amendments by the Agricultural Marketing 

8 Agreement Act of 1937, is amended by striking the third 

9 and fourth sentences, including the table, and inserting 

10 the following new sentence: ‘‘Throughout the 2-year period 

11 beginning on the effective date of this sentence (and sub12 sequent to such 2-year period unless modified by amend13 ment to the order involved), for purposes of determining 

14 prices for milk of the highest use classification, the Class 

15 I skim milk price per hundredweight specified in section 

16 1000.50(b) of title 7, Code of Federal Regulations (or suc17 cessor regulation), shall be the sum of the adjusted Class 

18 I differential specified in section 1000.52 of such title 7, 

19 plus the adjustment to Class I prices specified in sections 

20 1005.51(b), 1006.51(b), and 1007.51(b) of such title 7 

21 (or successor regulation), plus the simple average of the 

22 advanced pricing factors computed in sections 

23 1000.50(q)(1) and 1000.50(q)(2) of such title 7 (or suc24 cessor regulation), plus $0.74.’’. 

25 (b) EFFECTIVE DATE AND IMPLEMENTATION.— 


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1 (1) EFFECTIVE DATE.—The amendment made 

2 by subsection (a) shall take effect on the first day 

3 of the first month beginning more than 120 days 

4 after the date of the enactment of this Act. 

5 (2) IMPLEMENTATION.—Implementation of the 

6 amendment made by subsection (a) is not subject to 

7 any of the following: 

8 (A) The notice and comment provisions of 

9 section 553 of title 5, United States Code. 

10 (B) The notice and hearing requirements 

11 of paragraphs (3) and (4) of section 8c of the 

12 Agricultural Adjustment Act (7 U.S.C. 608c), 

13 reenacted with amendments by the Agricultural 

14 Marketing Agreement Act of 1937. 

15 (C) The order amendment requirements of 

16 section 8c(17) of such Act (7 U.S.C. 608c(17)). 

17 (D) A referendum under section 8c(19) of 

18 such Act (7 U.S.C. 608c(19)). 

19 SEC. 4. EXTENSION OF DAIRY FORWARD PRICING PRO20 GRAM. 

21 Section 1502(e) of the Food, Conservation, and En22 ergy Act of 2008 (7 U.S.C. 8772(e)) is amended— 

23 (1) in paragraph (1), by striking ‘‘2018’’ and 

24 inserting ‘‘2023’’; and 


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1 (2) in paragraph (2), by striking ‘‘2021’’ and 

2 inserting ‘‘2026’’. 

3 SEC. 5. EXTENSION OF DAIRY INDEMNITY PROGRAM. 

4 Section 3 of Public Law 90–484 (7 U.S.C. 450l) is 

5 amended by striking ‘‘2018’’ and inserting ‘‘2023’’. 

6 SEC. 6. EXTENSION OF DAIRY PROMOTION AND RESEARCH 

7 PROGRAM. 

8 Section 113(e)(2) of the Dairy Production Stabiliza9 tion Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by 

10 striking ‘‘2018’’ and inserting ‘‘2023’’. 

11 SEC. 7. REPEAL OF DAIRY PRODUCT DONATION PROGRAM. 

12 Section 1431 of the Agricultural Act of 2014 (7 

13 U.S.C. 9071) is repealed. 

Æ 


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