---
kind: "section"
citation: "7 U.S.C. § 9054"
title: "7"
title_heading: "Agriculture"
number: "9054"
heading: "Participation of dairy operations in dairy margin coverage"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/9054"
units:
  - "Chapter 115 — Agricultural Commodity Policy and Programs"
  - "Subchapter III — Dairy"
  - "Part A — Dairy Margin Coverage"
---

# §9054. Participation of dairy operations in dairy margin coverage

- (a) **Eligibility—** All [dairy operations](/usc/7/9051.md?p=4-A) in the [United States](/usc/7/9011.md?p=25) shall be eligible to participate in [dairy margin coverage](/usc/7/9051.md?p=5) to receive [dairy margin coverage payments](/usc/7/9051.md?p=6).
- (b) **Registration process—**
  - (1) **In general—** The [Secretary](/usc/7/9011.md?p=20) shall specify the manner and form by which a [participating dairy operation](/usc/7/9051.md?p=7) may register to participate in [dairy margin coverage](/usc/7/9051.md?p=5), including the establishment of a date each calendar year by which a [dairy operation](/usc/7/9051.md?p=4-A) shall register for the calendar year.
  - (2) **Extension of election period for 2018 calendar year—**
    - (A) **In general—** The [Secretary](/usc/7/9011.md?p=20) shall extend the election period for the 2018 calendar year by not less than 90 days after February 9, 2018, or such additional period as the [Secretary](/usc/7/9011.md?p=20) determines is necessary for [dairy operations](/usc/7/9051.md?p=4-A) to make new elections to participate for that calendar year, including [dairy operations](/usc/7/9051.md?p=4-A) that elected to so participate before February 9, 2018.
    - (B) **Retroactive program option—** In the case of a [dairy operation](/usc/7/9051.md?p=4-A) that, by operation of subsection (d) (as in effect on the day before December 20, 2018), was ineligible to participate in the margin protection program for any part of calendar year 2018, the [Secretary](/usc/7/9011.md?p=20) shall establish a new election period for that calendar year that ends on a date that is not less than 90 days after December 20, 2018, and the [Secretary](/usc/7/9011.md?p=20) determines is necessary for [dairy operations](/usc/7/9051.md?p=4-A) to make new elections to participate in the margin protection program (as in effect on the day before December 20, 2018) for that calendar year, including [dairy operations](/usc/7/9051.md?p=4-A) that elected to participate in the livestock gross margin for dairy program under the Federal Crop Insurance Act ([7 U.S.C. 1501](/usc/7/1501.md) et seq.) before February 9, 2018.
  - (3) **Election period for 2019 calendar year—** For the 2019 calendar year, the [Secretary](/usc/7/9011.md?p=20) shall—
    - (A) open the election period not later than 60 days after the effective date described in section 1401(m) of the Agriculture Improvement Act of 2018; and
    - (B) hold that election period open for not less than 90 days.
  - (4) **Treatment of multiproducer dairy operation—**
    - (A) **In general—** If a [participating dairy operation](/usc/7/9051.md?p=7) is operated by more than 1 dairy [producer](/usc/7/9011.md?p=17-A), the dairy [producers](/usc/7/9011.md?p=17-A) of the [dairy operation](/usc/7/9051.md?p=4-A) who elect to participate shall be treated as a single [dairy operation](/usc/7/9051.md?p=4-A) for purposes of participating in [dairy margin coverage](/usc/7/9051.md?p=5).
    - (B) **Rule of construction—** [Subparagraph (A)](#b-4-A) shall not be construed to allow a [producer](/usc/7/9011.md?p=17-A) to adjust the proportion of their share covered under tier I or tier II premiums from the proportion covered for the operation.
  - (5) **Treatment of producers with multiple dairy operations—** If a dairy [producer](/usc/7/9011.md?p=17-A) operates 2 or more [dairy operations](/usc/7/9051.md?p=4-A), each [dairy operation](/usc/7/9051.md?p=4-A) of the [producer](/usc/7/9011.md?p=17-A) shall separately register to participate in [dairy margin coverage](/usc/7/9051.md?p=5).
- (c) **Annual administrative fee—**
  - (1) **Administrative fee required—** Each [participating dairy operation](/usc/7/9051.md?p=7) shall—
    - (A) pay an administrative fee to register to participate in [dairy margin coverage](/usc/7/9051.md?p=5); and
    - (B) pay the administrative fee annually through the duration of [dairy margin coverage](/usc/7/9051.md?p=5) specified in [section 9059 of this title](/usc/7/9059.md).
  - (2) **Amount of fee—** The administrative fee for a [participating dairy operation](/usc/7/9051.md?p=7) shall be $100.
  - (3) **Use of fees—** The [Secretary](/usc/7/9011.md?p=20) shall use administrative fees collected under this subsection to cover administrative costs incurred to carry out [dairy margin coverage](/usc/7/9051.md?p=5).
  - (4) **Exemption—** A limited resource, beginning, veteran, or socially disadvantaged farmer, as defined by the [Secretary](/usc/7/9011.md?p=20), shall be exempt from the administrative fee under this subsection.

## Source credit

(Pub. L. 113–79, title I, § 1404, Feb. 7, 2014, 128 Stat. 690; Pub. L. 115–123, div. F, § 60101(b)(2), Feb. 9, 2018, 132 Stat. 311; Pub. L. 115–334, title I, § 1401(d), (e), (k)(5), Dec. 20, 2018, 132 Stat. 4512, 4517.)

## Notes

### Editorial Notes

### References in Text

The Federal Crop Insurance Act, referred to in subsec. (b)(2)(B), is subtitle A of title V of act Feb. 16, 1938, ch. 30, 52 Stat. 72, which is classified generally to subchapter I (§ 1501 et seq.) of chapter 36 of this title. For complete classification of this Act to the Code, see section 1501 of this title and Tables.

Section 1401(m) of the Agriculture Improvement Act of 2018, referred to in subsec. (b)(3)(A), is section 1401(m) of Pub. L. 115–334, which is set out as a note under section 9051 of this title.

### Amendments

2018—Pub. L. 115–334, § 1401(k)(5)(A), substituted “dairy margin coverage” for “margin protection program” in section catchline.

Subsec. (a). Pub. L. 115–334, § 1401(k)(5)(B), substituted “eligible to participate in dairy margin coverage to receive dairy margin coverage payments” for “eligible to participate in the margin protection program to receive margin protection payments”.

Subsec. (b)(1). Pub. L. 115–334, § 1401(k)(5)(C), substituted “dairy margin coverage” for “the margin protection program”.

Pub. L. 115–123, § 60101(b)(2)(A)(i), inserted “, including the establishment of a date each calendar year by which a dairy operation shall register for the calendar year” before period at end.

Subsec. (b)(2). Pub. L. 115–334, § 1401(e)(2), designated existing provisions as subpar. (A), inserted heading, and added subpar. (B).

Pub. L. 115–123, § 60101(b)(2)(A)(iii), added par. (2). Former par. (2) redesignated (3).

Subsec. (b)(3). Pub. L. 115–334, § 1401(d)(2), added par. (3) and struck out former par. (3). Prior to amendment, text read as follows: “If a participating dairy operation is operated by more than 1 dairy producer, all of the dairy producers of the participating dairy operation shall be treated as a single dairy operation for purposes of participating in the margin protection program.”

Pub. L. 115–123, § 60101(b)(2)(A)(ii), redesignated par. (2) as (3). Former par. (3) redesignated (4).

Subsec. (b)(4). Pub. L. 115–334, § 1401(d)(2), added par. (4). Former par. (4) redesignated (5).

Pub. L. 115–123, § 60101(b)(2)(A)(ii), redesignated par. (3) as (4).

Subsec. (b)(5). Pub. L. 115–334, § 1401(k)(5)(C), substituted “dairy margin coverage” for “the margin protection program”.

Pub. L. 115–334, § 1401(d)(1), redesignated par. (4) as (5).

Subsec. (c)(1), (3). Pub. L. 115–334, § 1401(k)(5)(C), substituted “dairy margin coverage” for “the margin protection program” wherever appearing.

Subsec. (c)(4). Pub. L. 115–123, § 60101(b)(2)(B), added par. (4).

Subsec. (d). Pub. L. 115–334, § 1401(e)(1), struck out subsec. (d). Text read as follows: “A dairy operation may participate in the margin protection program or the livestock gross margin for dairy program under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), but not both.”

### Statutory Notes and Related Subsidiaries

### Effective Date of 2018 Amendment

Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title.

Amendment by Pub. L. 115–123 applicable beginning with the 2018 calendar year, see section 60101(b)(5) of Pub. L. 115–123, set out as a note under section 9051 of this title.