cent, of the production history of the dairy operation 
of the participating dairy producer. 
‘‘(4) PRODUCER PREMIUMS.— 
‘‘(A) PREMIUMS
REQUIRED.—A partici-
pating dairy producer that purchases margin 
insurance shall pay an annual premium equal to 
the product obtained by multiplying— 
‘‘(i) the percentage selected by the 
dairy producer under paragraph (3); 
‘‘(ii) the production history applicable 
to the dairy producer; and 
‘‘(iii) the premium per hundredweight 
of milk, as specified in the applicable table 
under subparagraph (B) or (C). 
‘‘(B) PREMIUM PER HUNDREDWEIGHT FOR 
FIRST 4 MILLION POUNDS OF PRODUCTION.— 
For the first 4,000,000 pounds of milk mar-
ketings included in the annual production his-
tory of a participating dairy operation, the pre-
mium per hundredweight corresponding to each 
coverage level specified in the following table is 
as follows: 
‘‘Coverage Level 
Premium per Cwt. 
$4.00 
$0.00 
$4.50 
$0.01 
$5.00 
$0.02 
$5.50 
$0.035
‘‘Coverage Level 
Premium per Cwt. 
$6.00 
$0.045 
$6.50 
$0.09 
$7.00 
$0.18 
$7.50 
$0.60 
$8.00 
$0.95 
‘‘(C) PREMIUM PER HUNDREDWEIGHT FOR 
PRODUCTION
IN
EXCESS
OF
MILLION 
POUNDS.—For milk marketings in excess of 
4,000,000 pounds included in the annual pro-
duction history of a participating dairy oper-
ation, the premium per hundredweight cor-
responding to each coverage level is as follows: 
‘‘Coverage Level 
Premium per Cwt. 
$4.00 
$0.030 
$4.50 
$0.045 
$5.00 
$0.066 
$5.50 
$0.11 
$6.00 
$0.185 
$6.50 
$0.29 
$7.00 
$0.38 
$7.50 
$0.83 
$8.00 
$1.06 
‘‘(D) TIME FOR PAYMENT.— 
‘‘(i) FIRST YEAR.—As soon as prac-
ticable after a dairy producer registers to 
participate in the margin insurance pro-
gram and purchases margin insurance, the 
dairy producer shall pay the premium de-
termined under subparagraph (A) for the
dairy producer for the first calendar year 
of the margin insurance. 
‘‘(ii) SUBSEQUENT YEARS.— 
‘‘(I) IN
GENERAL.—When the 
dairy producer first purchases margin 
insurance, the dairy producer shall 
also elect the method by which the 
dairy producer will pay premiums 
under this subsection for subsequent 
years in accordance with 1 of the 
schedules described in subclauses (II) 
and (III). 
‘‘(II) 
SINGLE
ANNUAL
PAY-
MENT.—The participating dairy pro-
ducer may elect to pay 100 percent of 
the annual premium determined under 
subparagraph (A) for the dairy pro-
ducer for a calendar year by not later 
than January 15 of the calendar year. 
‘‘(III) 
SEMI-ANNUAL
PAY-
MENTS.—The participating dairy pro-
ducer may elect to pay— 
‘‘(aa) 50 percent of the an-
nual premium determined under 
subparagraph (A) for the dairy
producer for a calendar year by 
not later than January 15 of the 
calendar year; and 
‘‘(bb) the remaining 50 per-
cent of the premium by not later 
than June 15 of the calendar 
year. 
‘‘(5) PRODUCER PREMIUM OBLIGATIONS.— 
‘‘(A) PRO-RATION
OF
FIRST
YEAR
PRE-
MIUM.—A participating dairy producer that 
purchases margin insurance after initial reg-
istration in the margin insurance program shall 
pay a pro-rated premium for the first calendar 
year based on the date on which the producer 
purchases the coverage. 
‘‘(B) SUBSEQUENT PREMIUMS.—Except as 
provided in subparagraph (A), the annual pre-
mium for a participating dairy producer shall 
be determined under paragraph (4) for each 
year in which the margin insurance program is 
in effect. 
‘‘(C) LEGAL OBLIGATION.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clauses (ii) and (iii), a partici-
pating dairy producer that purchases mar-
gin insurance shall be legally obligated to 
pay the applicable premiums for the entire 
period of the margin insurance program 
(as provided in the payment schedule elect-
ed under paragraph (4)(B)), and may not 
opt out of the margin insurance program. 
‘‘(ii) DEATH.—If the dairy producer 
dies, the estate of the deceased may cancel 
the margin insurance and shall not be re-
sponsible for any further premium pay-
ments. 
‘‘(iii) RETIREMENT.—If the dairy pro-
ducer retires, the producer may request 
that Secretary cancel the margin insurance 
if the producer has terminated the dairy 
operation entirely and certifies under oath 
that the producer will not be actively en-
gaged in any dairy operation for at least 
the next 7 years. 
‘‘(6) PAYMENT
THRESHOLD.—A participating 
dairy producer with margin insurance shall receive a 
margin insurance payment whenever the average ac-
tual dairy producer margin for a consecutive 2- 
month period is less than the coverage level thresh-
old selected by the dairy producer under paragraph 
(2). 
‘‘(7) MARGIN INSURANCE PAYMENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
make a margin insurance protection payment to 
each participating dairy producer whenever the 
average actual dairy producer margin for a con-
secutive 2-month period is less than the cov-
erage level threshold selected by the dairy pro-
ducer under paragraph (2). 
‘‘(B) AMOUNT OF PAYMENT.—The margin 
insurance payment for the dairy operation of a 
participating dairy producer shall be determined 
as follows: 
‘‘(i) The Secretary shall calculate the 
difference between— 
‘‘(I) the coverage level threshold 
selected by the dairy producer under 
paragraph (2); and 
‘‘(II) the average actual dairy 
producer margin for the consecutive 
2-month period. 
‘‘(ii) The amount determined under 
clause (i) shall be multiplied by—
‘‘(I) the percentage selected by 
the dairy producer under paragraph 
(3); and 
‘‘(II) the lesser of— 
‘‘(aa) the quotient obtained 
by dividing— 
‘‘(AA) the production 
history applicable to the pro-
ducer 
under 
subsection 
(e)(1); by 
‘‘(BB) 6; and 
‘‘(bb) the actual quantity of 
milk marketed by the dairy oper-
ation of the dairy producer dur-
ing the consecutive 2-month pe-
riod. 
‘‘(g) EFFECT OF FAILURE TO PAY PREMIUMS.— 
‘‘(1) LOSS
OF
BENEFITS.—A participating 
dairy producer that is in arrears on premium pay-
ments for margin insurance— 
‘‘(A) remains legally obligated to pay the 
premiums; and 
‘‘(B) may not receive margin insurance 
until the premiums are fully paid.
‘‘(2) ENFORCEMENT.—The Secretary may take 
such action as is necessary to collect premium pay-
ments for margin insurance. 
‘‘(h) USE OF COMMODITY CREDIT CORPORATION.— 
The Secretary shall use the funds, facilities, and the au-
thorities of the Commodity Credit Corporation to carry 
out this section. 
‘‘(i) PROGRAM START DATE.—The Secretary shall 
conduct the margin insurance program beginning on Octo-
ber 1, 2013.’’. 
SEC. 1402. RULEMAKING. 
(a) PROCEDURE.—The promulgation of regulations 
for the initiation of the margin insurance program, and 
for administration of the margin insurance program, shall 
be made— 
(1) without regard to chapter 35 of title 44, 
United States Code (commonly known as the Paper-
work Reduction Act); 
(2) without regard to the Statement of Policy 
of the Secretary of Agriculture effective July 24, 
1971 (36 Fed. Reg. 13804), relating to notices of 
proposed rulemaking and public participation in 
rulemaking; and 
(3) subject to subsection (b), pursuant to sec-
tion 553 of title 5, United States Code.
100 
(b) SPECIAL RULEMAKING REQUIREMENTS.— 
(1) INTERIM
RULES
AUTHORIZED.—With re-
spect to the margin insurance program, the Sec-
retary may promulgate interim rules under the au-
thority provided in subparagraph (B) of section 
553(b) of title 5, United States Code, if the Sec-
retary determines such interim rules to be needed. 
Any such interim rules for the margin insurance 
program shall be effective on publication. 
(2) FINAL RULES.—With respect to the margin 
insurance program, the Secretary shall promulgate 
final rules, with an opportunity for public notice and 
comment, no later than 21 months after the date of 
the enactment of this Act. 
(c) INCLUSION
OF ADDITIONAL ORDER.—Section 
143(a)(2) of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7253(a)(2)) is amended 
by adding at the end the following new sentence: ‘‘Sub-
section (b)(2) does not apply to the authority of the Sec-
retary under this subsection.’’.
101 
PART II—REPEAL OR REAUTHORIZATION OF 
OTHER DAIRY-RELATED PROVISIONS 
SEC. 1411. REPEAL OF DAIRY PRODUCT PRICE SUPPORT 
AND MILK INCOME LOSS CONTRACT PRO-
GRAMS. 
(a) REPEAL OF DAIRY PRODUCT PRICE SUPPORT 
PROGRAM.—Section 1501 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8771) is repealed. 
(b) REPEAL OF MILK INCOME LOSS CONTRACT PRO-
GRAM.—Section 1506 of the Food, Conservation, and En-
ergy Act of 2008 (7 U.S.C. 8773) is repealed. 
SEC. 1412. REPEAL OF DAIRY EXPORT INCENTIVE PRO-
GRAM. 
(a) REPEAL.—Section 153 of the Food Security Act 
of 1985 (15 U.S.C. 713a–14) is repealed. 
(b) CONFORMING AMENDMENTS.—Section 902(2) of 
the Trade Sanctions Reform and Export Enhancement 
Act of 2000 (22 U.S.C. 7201(2)) is amended— 
(1) by striking subparagraph (D); and 
(2) by redesignating subparagraphs (E) and 
(F) as subparagraphs (D) and (E), respectively. 
SEC. 1413. EXTENSION OF DAIRY FORWARD PRICING PRO-
GRAM. 
Section 1502(e) of the Food, Conservation, and En-
ergy Act of 2008 (7 U.S.C. 8772(e)) is amended—
102 
(1) in paragraph (1), by striking ‘‘2012’’ and 
inserting ‘‘2018’’; and 
(2) in paragraph (2), by striking ‘‘2015’’ and 
inserting ‘‘2021’’. 
SEC. 1414. EXTENSION OF DAIRY INDEMNITY PROGRAM. 
Section 3 of Public Law 90–484 (7 U.S.C. 450l) is 
amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 1415. EXTENSION OF DAIRY PROMOTION AND RE-
SEARCH PROGRAM. 
Section 113(e)(2) of the Dairy Production Stabiliza-
tion Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by 
striking ‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 1416. REPEAL OF FEDERAL MILK MARKETING ORDER 
REVIEW COMMISSION. 
Section 1509 of the Food, Conservation, and Energy 
Act of 2008 (Public Law 110–246; 122 Stat. 1726) is re-
pealed. 
PART III—EFFECTIVE DATE 
SEC. 1421. EFFECTIVE DATE. 
This subtitle and the amendments made by this sub-
title shall take effect on October 1, 2013.
103 
Subtitle E—Supplemental Agricul-
tural Disaster Assistance Pro-
grams 
SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER AS-
SISTANCE. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE PRODUCER ON A FARM.— 
(A) IN GENERAL.—The term ‘‘eligible pro-
ducer on a farm’’ means an individual or entity 
described in subparagraph (B) that, as deter-
mined by the Secretary, assumes the production 
and market risks associated with the agricul-
tural production of crops or livestock. 
(B) DESCRIPTION.—An individual or enti-
ty referred to in subparagraph (A) is— 
(i) a citizen of the United States; 
(ii) a resident alien; 
(iii) a partnership of citizens of the 
United States; or 
(iv) a corporation, limited liability cor-
poration, or other farm organizational 
structure organized under State law. 
(2) FARM-RAISED
FISH.—The term ‘‘farm- 
raised fish’’ means any aquatic species that is propa-
gated and reared in a controlled environment.
104 
(3) LIVESTOCK.—The term ‘‘livestock’’ in-
cludes— 
(A) cattle (including dairy cattle); 
(B) bison; 
(C) poultry; 
(D) sheep; 
(E) swine; 
(F) horses; and 
(G) other livestock, as determined by the 
Secretary. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(b) LIVESTOCK INDEMNITY PAYMENTS.— 
(1) PAYMENTS.—For fiscal year 2012 and each 
succeeding fiscal year, the Secretary shall use such 
sums as are necessary of the funds of the Com-
modity Credit Corporation to make livestock indem-
nity payments to eligible producers on farms that 
have incurred livestock death losses in excess of the 
normal mortality, as determined by the Secretary, 
due to— 
(A) attacks by animals reintroduced into 
the wild by the Federal Government or pro-
tected by Federal law, including wolves and 
avian predators; or
105 
(B) adverse weather, as determined by the 
Secretary, during the calendar year, including 
losses due to hurricanes, floods, blizzards, dis-
ease, wildfires, extreme heat, and extreme cold. 
(2) PAYMENT RATES.—Indemnity payments to 
an eligible producer on a farm under paragraph (1) 
shall be made at a rate of 75 percent of the market 
value of the applicable livestock on the day before 
the date of death of the livestock, as determined by 
the Secretary. 
(3) SPECIAL RULE FOR PAYMENTS MADE DUE 
TO DISEASE.—The Secretary shall ensure that pay-
ments made to an eligible producer under paragraph 
(1) are not made for the same livestock losses for 
which compensation is provided pursuant to section 
10407(d) of the Animal Health Protection Act (7 
U.S.C. 8306(d)). 
(c) LIVESTOCK FORAGE DISASTER PROGRAM.— 
(1) DEFINITIONS.—In this subsection: 
(A) COVERED LIVESTOCK.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), the term ‘‘covered livestock’’ 
means livestock of an eligible livestock pro-
ducer that, during the 60 days prior to the 
beginning date of a qualifying drought or
106 
fire condition, as determined by the Sec-
retary, the eligible livestock producer— 
(I) owned; 
(II) leased; 
(III) purchased; 
(IV) entered into a contract to 
purchase; 
(V) is a contract grower; or 
(VI) sold or otherwise disposed of 
due to qualifying drought conditions 
during— 
(aa) the current production 
year; or 
(bb) subject to paragraph 
(3)(B)(ii), 1 or both of the 2 pro-
duction years immediately pre-
ceding the current production 
year. 
(ii) EXCLUSION.—The term ‘‘covered 
livestock’’ does not include livestock that 
were or would have been in a feedlot, on 
the beginning date of the qualifying 
drought or fire condition, as a part of the 
normal business operation of the eligible
122 
relating to direct attribution shall apply with respect 
to assistance provided under this section. 
SEC. 1502. NATIONAL DROUGHT COUNCIL AND NATIONAL 
DROUGHT POLICY ACTION PLAN. 
(a) DEFINITIONS.—In this section: 
(1) COUNCIL.—The term ‘‘Council’’ means the 
National Drought Council established by this sec-
tion. 
(2) DROUGHT.—The term ‘‘drought’’ means a 
natural disaster that is caused by a deficiency in 
precipitation— 
(A) that may lead to a deficiency in sur-
face and subsurface water supplies (including 
rivers, streams, wetlands, ground water, soil 
moisture, reservoir supplies, lake levels, and 
snow pack); and 
(B) that causes or may cause— 
(i) substantial economic or social im-
pacts; or 
(ii) physical damage or injury to indi-
viduals, property, or the environment. 
(3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b).