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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Dairy Risk Manage-
ment Act of 2018’’. 
SEC. 2. DAIRY RISK MANAGEMENT PROGRAM FOR DAIRY 
PRODUCERS. 
(a) REVIEW OF DATA USED IN CALCULATION OF AV-
ERAGE FEED COST.—Not later than 60 days after the 
date of the enactment of this Act, the Secretary of Agri-
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culture shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a report 
evaluating the extent to which the average cost of feed 
used by a dairy operation to produce a hundredweight of 
milk calculated by the Secretary as required by section 
1402(a) of the Agricultural Act of 2014 (7 U.S.C. 
9052(a)) is representative of actual dairy feed costs. 
(b) CORN SILAGE REPORT.—Not later than 1 year 
after the date of the enactment of this Act, the Secretary 
of Agriculture shall submit to the Committee on Agri-
culture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Sen-
ate a report detailing the costs incurred by dairy oper-
ations in the use of corn silage as feed, and the difference 
between the feed cost of corn silage and the feed cost of 
corn. 
(c) COLLECTION OF ALFALFA HAY DATA.—Not later 
than 120 days after the date of the enactment of this Act, 
the Secretary of Agriculture, acting through the National 
Agricultural Statistics Service, shall revise monthly price 
survey reports to include prices for high-quality alfalfa hay 
in the top five milk producing States, as measured by vol-
ume of milk produced during the previous month. 
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(d) REGISTRATION OF MULTIPRODUCER DAIRY OP-
ERATIONS.—Section 1404(b) of the Agricultural Act of 
2014 (7 U.S.C. 9054(b)) is amended— 
(1) in paragraph (3), by striking ‘‘If’’ and in-
serting ‘‘Subject to paragraph (5), if’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(5) CERTAIN
MULTIPRODUCER
DAIRY
OPER-
ATION EXCLUSIONS.— 
‘‘(A) EXCLUSION
OF
LOW-PERCENTAGE 
OWNERS.—To promote administrative efficiency 
in the dairy risk management program, a multi-
producer dairy operation covered by paragraph 
(3) may elect, at the option of the multipro-
ducer dairy operation, to exclude information 
from the registration process regarding any in-
dividual owner of the multiproducer dairy oper-
ation that— 
‘‘(i) holds less than a five percent 
ownership interest in the multiproducer 
dairy operation; or 
‘‘(ii) is entitled to less than five per-
cent of the income, revenue, profit, gain, 
loss, expenditure, deduction, or credit of 
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the multiproducer dairy operation for any 
given year. 
‘‘(B) EFFECT
OF
EXCLUSION
ON
DAIRY 
RISK MANAGEMENT PAYMENTS.—To the extent 
that an individual owner of a multiproducer 
dairy operation is excluded under subparagraph 
(A) from the registration of the multiproducer 
dairy operation, any dairy risk management 
payment made to the multiproducer dairy oper-
ation shall be reduced by an amount equal to 
the greater of the following: 
‘‘(i) The amount determined by multi-
plying the dairy risk management payment 
otherwise determined under section 1406 
by the total percentage of ownership inter-
ests represented by the excluded owners. 
‘‘(ii) The amount determined by mul-
tiplying the dairy risk management pay-
ment otherwise determined under section 
1406 by the total percentage of the in-
come, revenue, profit, gain, loss, expendi-
ture, deduction, or credit of the multipro-
ducer dairy operation represented by the 
excluded owners.’’. 
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(e) RELATION TO LIVESTOCK GROSS MARGIN FOR 
DAIRY PROGRAM.—Section 1404(d) of the Agricultural 
Act of 2014 (7 U.S.C. 9054(d)) is amended— 
(1) by striking ‘‘but not both’’ and inserting 
‘‘but not on the same production’’; 
(2) by striking ‘‘or the’’ and inserting ‘‘and 
the’’; and 
(3) by striking ‘‘margin protection program’’ 
and inserting ‘‘dairy risk management program’’. 
(f) PRODUCTION HISTORY OF PARTICIPATING DAIRY 
OPERATORS.— 
(1) CONTINUED USE OF PRIOR DAIRY OPER-
ATION PRODUCTION HISTORY.—Section 1405(a)(1) 
of the Agricultural Act of 2014 (7 U.S.C. 
9055(a)(1)) is amended by adding at the end the 
following new sentence: ‘‘The production history of 
a participating dairy operation shall continue to be 
based on annual milk marketings during the 2011, 
2012, or 2013 calendar year notwithstanding the op-
eration of the dairy risk management program 
through 2023.’’. 
(2) ADJUSTMENT.—Section 1405(a) of the Ag-
ricultural Act of 2014 (7 U.S.C. 9055(a)) is amend-
ed— 
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(A) in paragraph (2), by striking ‘‘In sub-
sequent years’’ and inserting ‘‘In the subse-
quent calendar years ending before January 1, 
2019’’; and 
(B) in paragraph (3), by inserting ‘‘, as 
applicable’’ after ‘‘paragraph (2)’’. 
(3) LIMITATION
ON
CHANGES
TO
BUSINESS 
STRUCTURE.—Section 1405 of the Agricultural Act 
of 2014 (7 U.S.C. 9055) is amended by adding at 
the end the following new subsection: 
‘‘(d) LIMITATION ON CHANGES TO BUSINESS STRUC-
TURE.—The Secretary may not make dairy risk manage-
ment payments to a participating dairy operation if the 
Secretary determines that the participating dairy oper-
ation has reorganized the structure of such operation sole-
ly for the purpose of qualifying as a new operation under 
subsection (b).’’. 
(g) DAIRY RISK MANAGEMENT PAYMENTS.— 
(1) ELECTION OF COVERAGE LEVEL THRESH-
OLD AND COVERAGE PERCENTAGE.—Section 1406 of 
the Agricultural Act of 2014 (7 U.S.C. 9056) is 
amended— 
(A) in subsection (a), by striking ‘‘annu-
ally’’; and 
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